ESG

Lynas liberated from LAMP lockdown

Malaysian government relaxes pandemic movement controls

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As of yesterday, Malaysia had reported 6298 confirmed cases of coronavirus, and 105 deaths. 

The plant was placed on care and maintenance mode on March 23.
 
"Lynas will be guided by health and hygiene requirements, global economic activity, customer demand, and any ongoing restrictions on suppliers as we ramp up the Lynas Malaysia plant," the company told the Australian Securities Exchange this morning.
 
The plant is targeting initial production levels of 70% of targeted rates under its recently completed Lynas NEXT expansion.
 
At that level it expects it can refill supply chains and to restock depleted inventories of critical materials, while maintaining new health and hygiene protocols at each site.
 
Lynas' Mount Weld facility in Western Australia, the source of the ore that is shipped to Malaysia for processing into rare earths, continues to operate with reduced staffing levels.
 
The company produced 1369 tonnes of neodymium-praseodymium for the March quarter.
 
It is yet to provide guidance for the current quarter, however any reduction in output comes during a period of lower pricing and depressed demand due to the global pandemic.
 
Lynas is the world's second largest rare earths producer, and the only significant producer outside China. It recently secured a contract to design a US-based facility for heavy rare earth separation - a key area of interest in its expansion plans.
 
The company started the month with around A$125 million in cash.
 
Shares in Lynas were last traded at $1.71, valuing it at around $1.2 billion. 

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