Lynas awards engineering contract for Malaysia rare earths plant

Posted on July 13, 2011. Filed under: Pollution |

PERTH (miningweekly.com) − Rare earths developer Lynas is moving ahead with plans to develop its Lynas Advanced Materials Plant (LAMP), in Malaysia, and has awarded the engineering, procurement, construction and commissioning assistance contract for the second phase of the expansion.

Thailiand-based Toyo-Thai was awarded a fixed lump sum of between $180-million and $210-million.

Subject to the receipt of all relevant approvals, phase-two construction would be completed in the fourth quarter of 2012. This phase would increase the plant’s capacity to 22 000 t/y of rare-earth ores.

The Malaysian government recently imposed a number of recommendations on the LAMP to ally fears over health and radioactive concerns at the plant.

Among the recommendations made by an independent panel was that the Malaysian Atomic Energy Licensing Board had to devise a long-term waste management plan for the project, and for Lynas to submit an end-of-life decommissioning plan for the plant.

Lynas said that the scheduled impact of meeting the Malaysian government’s requirements would likely result in the commissioning of the LAMP being pushed back to the end of this year, with full production capacity of phase one of LAMP to be achieved at the start of 2012.

Phase one of the Lynas rare earths project would produce 11 000 t/y of ore, which would be doubled in phase two to 22 000 t/y of ore, by 2013.

The phase-two expansion timeline would not be impacted by the additional recommendations.

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