Lynas Corporation sees Rare Earths export opportunity on limited China supply
Lynas Corporation has reported that the Ministry of Commerce
of the People’s Republic of China has released 7,976 tonnes of approved
Rare Earths export quota for the second half of 2010, including export
quota for both foreign-invested firms (1,768 tonnes) and local firms
(6,208 tonnes).
The total export quota for 2010 (30,259 tonnes)
is 40% less than the total export quota for 2009 (50,145 tonnes).
In
addition, the export quota for the second half of 2010 (7,976 tonnes)
is 72% less than the export quota for the second half of 2009 (28,417
tonnes).
Nicholas Curtis, executive chairman, said “the
tightening of supply regulations provides additional opportunity for
Lynas to meet the supply deficit outside of China."
"Lynas owns
the richest known deposit of Rare Earths outside of China at Mount Weld
in Western Australia and the company is progressing well with plant
construction to be in a position to commence supply in Q3 2011."
The
company plans to become the benchmark for security of supply and a
world leader in quality and environmental responsibility to an
international customer base.
Export quotas on Rare Earths
products were introduced by the Chinese government in 2003 to limit the
export of China’s strategic resource.
The 2010 regulatory
constraints of Rare Earths supply from China, which supplies over 90% of
Rare Earths to the world, is a significant reduction in product
available for export.
Lynas reported a new price high of
US$16.56/Kg was reached on 7 June 2010 for the average Mount Weld Rare
Earths composition on a FOB China basis.
The company anticipated
the increase in prices as demand continues to recover strongly in 2010.
Demand is further demonstrated by the 230% increase in Japanese
Rare Earths imports in April 2010 from a year earlier, the second month
in a row Japanese imports have increased significantly year-on-year.
