Lynas Rare Earths shares climb on Malaysia supply deal
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The news: Shares in Lynas Rare Earths jumped after the miner announced a deal with Menteri Besar, the strategic investment arm of the Kelantan state government in Malaysia, for the supply of mixed rare earths carbonate.
The numbers: Lynas shares were up 2.3% to $7.96 at 1pm AEST.
The context: Lynas said the memorandum of understanding will see the companies aim to strengthen, promote and develop the Malaysian rare earths industry in Kelantan.
It also provides a framework for the companies to negotiate a definitive agreement for the supply of mixed rare earths carbonate feedstock to the Lynas Malaysia advanced materials plant once production commences.
What they said: "This is a significant step for Lynas and the Malaysian rare earths industry, bringing together Lynas Malaysia's over a decade of rare earths industry expertise, and Kelantan state's rare earth resources," said Lynas CEO and managing director Amanda Lacaze.
"Malaysia's ionic clay deposits have excellent potential as future feedstocks for Lynas Malaysia, particularly given their high proportion of heavy rare earths which are in demand for future facing technologies including electric vehicles and electronics," she said.
