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The world’s largest non-Chinese language uncommon earths miner is elevating greater than $500mn to increase operations and goal stakes in US magnet makers, as western governments attempt to curb Beijing’s affect on international provides of important minerals.
Australia’s Lynas, which has mines in Western Australia and a refinery in Malaysia, stated on Thursday it was elevating A$825mn (US$538mn) in fairness to develop its stockpiles and capability and put money into “downstream” magnet makers in Malaysia and the US. Uncommon earths are used to make everlasting magnets in weapons techniques, electrical autos, medical gear and even bicycle frames.
“We would like to have the ability to take part, both on an operational or a provide or an fairness foundation on this a part of the availability chain,” stated Amanda Lacaze, chief government of Lynas, throughout an investor name on Thursday.
The US authorities has been pushing to construct up capability in uncommon earths mining to counter China, final month shopping for a stake in Las Vegas-based MP Supplies. The corporate held merger talks with Lynas that fell via final 12 months.
Washington has additionally set a decade-long worth ground for uncommon earths at almost double the present market charge. Lacaze stated Lynas was engaged in talks with the US, Australian and Japanese governments on worth flooring and related actions to assist develop a non-Chinese language provide chain of uncommon earths.
Lynas is already the most important uncommon earths miner outdoors China, having acquired Japanese financing over the previous decade to develop a provide chain for “gentle” uncommon earths, utilized in making everlasting magnets and smartphones.
It additionally has backing from Australian mining billionaire Gina Rinehart and, previously 12 months, has expanded into processing “heavy” uncommon earths, additionally wanted for magnets however much less plentiful.
“Lynas broke the Chinese language monopoly on lights in 2013. This 12 months, in 2025, we broke the Chinese language monopoly on heavies,” stated Lacaze.
The Lynas chief cautioned there was nonetheless “vital uncertainty” surrounding the way forward for its Seadrift challenge to construct a US defence department-backed uncommon earths facility in Texas, because of points with offtake agreements.
Lynas reported web revenue of A$8mn for the 12 months ended June 30, down from A$84.5mn final 12 months, due to manufacturing points and the price of enlargement. Income rose 20 per cent to A$556mn.
The fundraising is within the type of a completely underwritten share challenge and an extra A$75mn share buy plan for current shareholders.
