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Rare Earths have an increasingly important role in environmental protection, digital technology, energy efficiency and much, much more. Nick Curtis, Executive Chairman will take you through the Lynas Corporation story (LYC). The company owns the Mt Weld Rare Earth Oxide project (REO) in WA, probably the richest REO resource in the world. A concentrator was being built at the mine site and engineering studies nearing completion for an Advanced Materials Plant on the East Coast of Malaysia near Kuantan in 1Q09 when the GFC led to the suspension of both projects. The financial issues were resolved by the introduction of China Non-Ferrous Metal Mining (CNMC) to the project. CNMC will become a 51.6% shareholder in Lynas via the injection of A$252M in equity and underwriting Chinese bank debt finance for the project. The timing for obtaining Chinese and Australian regulatory approval, all the necessary documentation and finally shareholder approval is probably late in 3Q09. Nick Curtis will explain all this; describe when project construction is expected to recommence; and provide an overview of the REO market outlook.
The second presentation again has a specialist mineral product focus with Galaxy Resources (GXY) planning to become a major lithium carbonate supplier (Li2CO3) to the secondary rechargeable battery and electric vehicle markets where demand is forecast to grow threefold over the next decade. Managing Director Iggy Tan will explain the company’s plans to finalise project finance and commence development of the Mt Cattlin Lithium/Tantalum mine and concentrator at Ravensthorpe, WA in 3Q09 with first spodumene concentrate production starting in 3Q10. The plant will process 1Mtpa of ore feed and has a current minimum LoM of 15 years. The mine and concentrator are estimated to cost A$68M. Galaxy also plans to establish a 17,000tpa lithium carbonate plant in China (A$50M estimate) due to lower associated capital and operating costs, as well as being close to the strategic growing battery markets in Asia. GXY recently initiated the DFS into this value adding lithium carbonate project in China.
So there is lots of information to appreciate in this twin presentation focused on Rare Earths and Lithium Carbonate. Both have a strong Chinese flavour, with one company now majority owned by a Chinese enterprise and the second, planning a plant in China and with project finance approaching, inevitably considering Chinese financial support.
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