According to a report on Mining.com, Lynas Rare Earths signed a memorandum of understanding (MOU) with MB (Menteri Besar), an investment agency of the Kelantan state government in Malaysia, to secure more raw materials for its modern materials plant in the country.
MB is currently focusing on the development of ion-adsorption rare earth ore in Kelantan, where Lynas' beneficiation plant is also located.
Since 2012, Lynas' rare earth plant in Malaysia has been in operation, producing separated rare earth materials from mixed rare earth carbonate shipped from its Mt Weld rare earth mine in Australia, supplying users in East Asia, the US, and Europe.
Under the MOU, Lynas and MB will collaborate to consolidate and promote the development of the rare earth industry in Kelantan.
It also provides a framework for the parties to negotiate a final agreement, under which MB will supply mixed rare earth carbonate raw materials to Lynas' modern materials plant in Kuantan once its project commences production.
This MOU is non-binding and remains subject to the outcome of negotiations for the final agreement.
Amanda Lacaze, CEO and Managing Director of Lynas, stated that the MOU "is an important step for the company and the Malaysian rare earth industry, integrating the company's 10 years of experience in the Malaysian rare earth industry with Kelantan's abundant rare earth resources."
"Malaysia's ion-adsorption rare earth ore has significant potential, capable of providing Lynas with more raw materials. In particular, its high content of medium-heavy rare earths is urgently needed for the production of EVs and electronics."
Lynas, backed by Australian mining magnate Gina Rinehart, recently produced dysprosium oxide in Malaysia for the first time. The company also hopes to produce terbium oxide as early as the beginning of June.
