Lynas Rare Earths awarded $20m government grant

Lynas Rare Earths (ASX:LYC) has been awarded a $20m grant under the Australian Government’s Modern Manufacturing Initiative — Manufacturing Integration Stream.

The grant will be used to fund the development of a new capability that processes apatite-rich ores from the Mt Weld ore body in WA.

This process contains two circuits and the grant will partially fund the apatite leach circuit at Mt Weld.

Developed in collaboration with the Australian Nuclear Science and Technology Organisation (ANSTO) and Mt Weld Mining — a subsidiary of Lynas — the process is expected to deliver significant benefits.

Benefits include the creation of 90 jobs and Lynas will further engage with Australian universities to support ongoing process optimisation of the apatite leach circuit and strengthen critical minerals capability.

The circuits are expected to increase praseodymium, neodymium and dysprosium recoveries which are key inputs in the technologies needed for the global energy transition.

Lynas chief executive and managing director Amanda Lacaze said the company is pleased to have received the grant.

“It is very pleasing that this project will be undertaken in collaboration with ANSTO and with the involvement of students from Australian universities who are the future of the critical minerals industry,” she said.

“In addition to supporting the development of industry capability, the processing of apatite-rich ore will help to unlock additional value from the Mt Weld ore body with the goal of extending the operating life of both the mine at Mt Weld and the Lynas rare earths processing facility in Kalgoorlie.”

The apatite leach circuit is scheduled for completion by the end of 2024.