Lynas’ Malaysian operations additionally went by means of a upkeep shutdown throughout the reported interval, which the uncommon earths miner indicated took over a month.
Complete rare-earth oxide output for the fourth quarter ended June 30 was at 2,188 REO tons, plunging greater than 50% from a 12 months in the past.
“The primary bearings on one of many kilns failed and required a upkeep shutdown that took over a month,” Lynas stated, referring to its downstream Malaysian operations.
Sluggish demand from inexperienced vitality firms and electrical automakers, coupled with rising international provide, have severely dented uncommon earth merchandise’ costs.
“Uncommon-earths markets proceed to be impacted by weakened Chinese language demand and high-supply chain inventories….don’t at the moment see near-term assist on worth,” Jefferies analysts wrote in a notice.
Lynas stated market costs remained low regardless of a slight enchancment in Chinese language home end-product demand.
The typical promoting worth was A$42.3 per kilogram within the quarter, the corporate stated, in contrast with A$43.5 per kg a 12 months earlier.
Earlier this month, Lynas flagged disruptions to BHP’s means to provide sulphuric acid, a key ingredient in rare-earths processing, to its Kalgoorlie facility, after BHP suspended its Western Australia nickel operations.
Lynas stated it had been engaged on contingencies with the world’s largest miner aimed on the continued provide of acid to the Kalgoorlie plant.
The world’s largest producer of uncommon earths exterior China posted gross sales income of A$136.6 million ($90.72 million) for the quarter, in contrast with A$157.5 million a 12 months in the past.
($1 = 1.5058 Australian {dollars})
(By Rajasik Mukherjee; Enhancing by Sriraj Kalluvila and Rashmi Aich)