Australia’s largest rare earths miner Lynas Corporation says prices for rare earths have fallen in recent months, which is a healthy development for the industry.
Lynas is in the development phase of two projects, a concentration plant at Mount Weld in Western Australia and the Lynas Advanced Materials Plant (LAMP) in Malaysia.
Rare earths are metallic elements and are used in products ranging from digital televisions, mp3 players and fluorescent light bulbs.
The first half of 2011 saw an explosion in rare earths prices, dampening demand, chairman Nicholas Curtis told the Lynas annual general meeting on Wednesday.
“Since August 2011 there has been a substantial retracement in rare earths prices and a consequent readjustment of equity market valuations in line with a much more sober global economic outlook,” he said.
“We believe this price retracement is healthy for the industry. Prices are still very satisfactory, but much more sustainable for our customers.”
A moderation in prices means the industry is now poised for renewed growth in demand, Mr Curtis said.
The regulatory approval process for the LAMP project continues, and Lynas has submitted all requested documentation to the Malaysian Atomic Energy Licensing Board, Mr Curtis said.
