Supply concerns for Lynas as BHP Nickel West operations halt
Rare earths producer Lynas is addressing potential supply disruptions at its Kalgoorlie facility following BHP’s decision to suspend operations at its Western Australia nickel facilities starting October.
The shutdown, which was necessitated by a global oversupply in nickel, poses challenges to the supply of sulphuric acid crucial for Lynas’ rare earths processing operations.
Under a contract until June 30, 2027, Lynas sources sulphuric acid from BHP Nickel West either locally from the Kalgoorlie smelter or through imported sources. BHP has committed to making reasonable efforts to continue supplying imported acid to Lynas’ facility.
Lynas' Kalgoorlie plant processes rare earth concentrate extracted from its Mt Weld mine. This concentrate undergoes a high-temperature process in a 110-m-long rotating kiln—one of Australia's largest—to convert rare earth phosphate minerals into rare earth sulphate. Following this, a leaching process with added water removes impurities such as iron phosphate, ultimately yielding a mixed rare earth carbonate (MREC).
The MREC produced in Kalgoorlie is subsequently refined further at Lynas' advanced materials plants, such as the facility in Gebeng, Malaysia, or potentially at its upcoming rare earths separation facility in the US.
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