BASF signs new rare earths long term contract with Lynas

SYDNEY, AUSTRALIA: Lynas Corporation Limited has signed a new long term supply agreement with BASF Corporation for the supply of rare earths to be produced at the Lynas Advanced Materials plant (LAMP) in Malaysia. BASF’s Fluid Catalytic Cracking business consumes lanthanum and the contract shall secure a substantial portion of BASF’s long term lanthanum requirements, with a pricing mechanism tied to market price.

“The contract indicates how Lynas is able to stabilise important rare earths supply chains for major industrial users. Lynas is producing rare earths concentrate at its Mount Weld plant and is on track for first feed of rare earths concentrate at LAMP in Malaysia in the fourth quarter of 2011. This is significantly ahead of other new rare earths projects that have been announced outside China,” said Nicholas Curtis, CEO, Lynas.

The contract shall be for product supplied from both phase 1 and phase 2 expansion of the LAMP. Phase 1, with capacity of 11,000 tonne REO per annum, is scheduled for first feed of rare earths concentrate into the LAMP in the fourth quarter of 2011. The phase 2 schedule is 12 months after phase 1 and will double the LAMP capacity to 22,000 tonne REO per annum.

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