Lynas to work with BHP for continued acid supply in WA
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The news: Lynas Rare Earths is working on contingencies with BHP to ensure continued sulphuric acid supply to its Kalgoorlie facility after the mining giant’s decision to suspend nickel operations in Western Australia.
The context: BHP Nickel West currently supplies sulphuric acid to the Kalgoorlie rare earth facility from its nickel smelter, but this will be affected by the BHP’s announcement that it will temporarily suspended nickel operations in the state due to an oversupply in the global market. The initial term of the contract is until 30 June, 2027.
Lynas told shareholders BHP affirmed its commitment to “using reasonable efforts to supply imported acid to Lynas" in line with the terms of the supply contract.
Sulphuric acid is available for purchase on global markets, it said, adding that it is working with BHP to ensure continued acid supply to Kalgoorlie and contingency plans will now be finalised for implementation.
Late Thursday, BHP has said the Nickel West operations and West Musgrave project will be suspended from October 2024 with the decision to be reviewed by February 2027.
The source: ASX announcement
