Lynas Rare Earths flags supply chain disruption at Kalgoorlie
Lynas Rare Earths flagged BHP Group’s ability to supply sulphuric acid, a key ingredient in rare-earths processing, to its Kalgoorlie facility will be disrupted by the miner’s suspension of its Western Australia nickel operations.
On Thursday, BHP, the world’s largest-listed miner said that it will suspend its Western Australia nickel operations from October, citing a slump in metal prices while dealing with oversupply issues in the global market.
Lynas, the world’s largest rare earths producer outside China, said on Friday that it has a contract with BHP Nickel West over the supply of sulphuric acid to its Kalgoorlie rare- earth facility in Western Australia from either the Kalgoorlie nickel smelter or other sources.
BHP’s decision to shut down mining at its Kalgoorlie nickel smelter, among others, would cause a disruption in the acid supply to Lynas’ Kalgoorlie facility.
The rare earths producer, however added that the mining behemoth has assured Lynas of its ability to “using reasonable efforts” to supply imported acid to Lynas.