Australian-Malaysian rare earths producer Lynas has reaffirmed its commitment to prioritising supplies to Japanese industrial customers following the 10-year extension of a loan facility.
Through JARE, a special purpose company set up by Japan's state-owned energy agency Jogmec and trading house Sojitz, Lynas will access capital investment to fund its Lynas 25 expansion programme to boost supplies of rare earths products to Japanese and international customers.
Lynas has a mine at Mount Weld in Western Australia and processing operations in Malaysia.
It has had a funding relationship with JARE since 2011. The new loan agreement reduces principal repayments to nominal levels up to 2025, allowing Lynas to accumulate significant cash flow from operations, it said.
Lynas last month entered into an agreement with Texas-based Blue Line, aimed at developing a rare earths separation plant in the US.
Lynas produced 5,444t of rare earth oxide during January-March this year.
