Lynas lines up Mt Weld evolution

Since 2024, Lynas Rare Earths (ASX: LYC) has had its sights set on meeting surging global demand for rare earths, by advancing its $500m Mt Weld Expansion Project in WA’s Goldfields.

The Mt Weld rare earths deposit sits in a two-billion-year-old volcanic plug and is considered one of the world’s most valuable rare earths deposits because of its high grade and predicted long life, containing both light and heavy rare earth elements.

Back in August 2022, Lynas announced a $500m capacity expansion project at the mine and concentration plant — global demand for rare earth materials and neodymium magnets had been accelerating, with neodymium magnet demand forecast to grow from 130,000t of neodymium magnets consumed in 2020 to 265,000t in 2030, driven by the sheer growth of electric vehicles and wind energy.

2024 Success

Lynas Rare Earths, in August 2024, reported a 92% increase in mineral resources at the deposit and at that time last year, the mineral resource estimate (MRE) sat at 106.6mt at an average grade of 4.12% total rare earth oxide (TREO) for a total of 4.39mt of contained TREO.

That MRE increase followed 84,000m being drilled between 2018 and 2024.

The company also recorded a 63% increase in ore reserves, with ore reserves sitting at 32mt at 6.44% TREO, which also included a 92% increase in contained dysprosium oxide, with all heavy rare earth element grades including terbium oxide included.

During that time, those upgrades supported a 20-year mine life at 12,000tpa of neodymium and praseodymium oxide production capacity.

The expansion project

The project is designed for sustainability and efficiency, featuring state-of-the-art water recycling systems, advanced processing equipment, and plans to transition to renewable energy.

Lynas Rare Earths chief executive Amanda Lacaze emphasises the strategic importance of the Mt Weld resource, describing it as a “foundation for success” in the rapidly evolving rare earths market. Backed by cutting-edge exploration efforts and collaborations with global and local experts, Lynas has since been poised to capitalise on Mt Weld’s long-term potential.

This expansion reflects Lynas’ commitment to securing Australia’s role in the global energy transition while supporting regional economic development. The

project’s completion in 2024 will mark a milestone in meeting the world’s growing appetite for sustainable, high-grade rare earth materials.

The last quarter

In the company’s October 2024 Quarterly Statement, Lynas Rare Earths reported that mining at Mt Weld continued during the quarter with the removal of overburden waste and the Mt Weld team continued to deliver efficient concentrate production levels to supply both Lynas Malaysia and Lynas’ Kalgoorlie Facility.

They also reported that Stage 1 of the Mt Weld Expansion Project, the new concentrate dewatering circuit transitioned to operations during the quarter, marking a significant milestone. The circuit delivers a target filter cake moisture content, which is lower than the existing filter circuit, providing an operating benefit for the business.

Construction of Mt Weld Expansion Project Stage 2 (Balance of Plant) was progressing as planned, with good progress on the grinding and flotation circuits. It was then forecast that Stage 2 would be complete by the end of FY25 and would be progressively commissioned.

Up and coming

The Mt Weld Expansion Project is a testament to Lynas Rare Earths’ commitment to innovation and sustainability in the face of global demand for critical minerals. With its strategic investment in cutting-edge technology and infrastructure, the company is poised to cement its position as a leader in the rare earths market while advancing Australia’s standing as a critical supplier to renewable energy and high-tech industries.

As 2024 progresses, Lynas’ ambitious plans appear well-aligned with market needs, showcasing a balance of operational efficiency and environmental stewardship.

This expansion not only secures the company’s growth trajectory but also demonstrates its pivotal role in the global shift towards sustainable and green technologies.

The future looks bright for Lynas and the Mt Weld operation.