Australia’s Lynas Rare Earths said on Friday that it will temporarily shut down all operations in Malaysia, besides mixed rare earth carbonate (MREC) processing, to complete upgrade works to support increased downstream capacity.

The shutdown would start from mid-November, said CEO Amanda Lacaze, adding that MREC processing volumes were expected to be minimal during this period.

At Lynas Malaysia, the company will implement an upgrade to downstream operations to increase neodymium and praseodymium (NdPr) production capacity to about 10 000 t/y.

Lacaze said the additional capacity would be essential should its Malaysian operating licence be updated to allow the continued import and processing of lanthanide concentrate from January 1.

Should that not occur, the capacity would still be required as the Kalgoorlie operations, in Western Australia, would ramp up to nameplate capacity of MREC feedstock to produce about 9 000 t/y NdPr finished product.

During the shutdown, key Malaysian cracking and leaching (C&L) personnel would be deployed to assist with the startup process in Kalgoorlie.

Lynas has filed proceedings before the High Court of Malaya at Kuala Lumpur, seeking judicial review of the Malaysian operating licence conditions prohibiting the import and processing of lanthanide concentrate after January 1. An application for a stay to allow Lynas to operate on a normal basis, while administrative and legal appeals were heard and decided had been listed for hearing in November, the company said.

Lynas’ activities in Malaysia have posed challenges for the company, as the government has expressed apprehension regarding radiation levels associated with certain processes over the past few years.

Meanwhile, Lynas reported mixed results for the September quarter. Sales revenue reduced to A$128.1-million, reflecting lower rare earths prices and continuing accumulation of NdPr and mixed heavy rare earths (SEG) inventory.

NdPr production, at 1 526 t, reflected planned and delayed preventative maintenance works in the C&L plant at Lynas Malaysia.

“Market demand remains in line with expectations and the NdPR market price stabilised above $60/kg midway through the quarter. Demand for heavy rare earths (HRE) is increasing, driven by the global demand for EVs. In line with this, we retained some SEG product as inventory for future sales once the current HRE price recovers,” said Lacaze.

The company also reported that it had started the kiln heating cycle at the new Kalgoorlie facility, marking the first step in production.

“While the trajectory of this ramp-up is inherently unpredictable, this is an exciting milestone,” said Lacaze.