Lynas signs US$200m Rare Earths supply contract

Lynas Corporation Limited has signed its second supply contract with a significant Rare....

  Lynas Corporation Limited has signed its second supply contract with a significant Rare Earths customer for the supply of Mt Weld Rare Earths to be produced from the company’s Malaysian processing plant.The contract is a long-term five-year contract with a value in excess of US$200mover five years, based on current prices. The contracted sales cover neodymium and praseodymium, which are key elements for the Rare Earths magnet industry. The pricing structure of the contract is related to the market price, however it includes a minimum floor price, without a maximum ceiling price, for the product sales over the term of the contract. Lynas’ Executive Chairman, Nicholas Curtis said he believes the signing of the contract to be a key milestone for the company and the Rare Earths project. “The Rare Earths magnet market is growing very strongly at fifteen percent per annum, which is forecast to continue for the next five years,” Mr Curtis said. “This is an important market for the company and it gives certainty to the company’s cash flows.”“The Board is delighted the company has signed a long-term supply agreement in this market,” Mr Curtis said. Lynas Corporation is actively engaged with additional potential customers throughout Europe, Japan and the USA.