Lynas Rare Earths produces first samarium

Lynas Rare Earths (ASX: LYC) has produced its first samarium oxide from its plant in Malaysia, becoming the only non-Chinese producer of the mineral.

This expands Lynas’ range of separated heavy rare earth oxide products to three, alongside dysprosium and terbium, which it began producing last summer.

The latest milestone further enhances the company’s position as the only commercial producer of separated heavy rare earths outside China, the Australian miner said in a March 19 release.

Samarium oxide, used in high-performance magnets for electronics and aerospace as well as optical, catalyst and medical applications, is another niche metals market earning notoriety as countries and companies in the West try to chip away at China’s dominance in metals extraction and refining. 

Plant expansion

Lynas had planned its first samarium oxide production in April after it announced an expansion of its Malaysian plant for about A$180 million.  It is aiming to separate up to 5,000 tonnes a year of heavy rare earth feedstock to produce samarium, gadolinium, dysprosium, terbium, yttrium and lutetium, the company said.

It may add more products such as europium, holmium, ytterbium and erbium based on potential commercial agreements, it added.

“The achievement of first Samarium oxide, on spec and ahead of schedule, is a significant milestone for Lynas and demonstrates the expertise and capability of our inhouse team which is unique outside China,” Lynas’ CEO and managing director Amanda Lacaze said in the release.

Earlier last week, Lynas signed a binding letter of intent with the U.S. government that would see the company supply light and heavy rare earth oxide products to the Department of Defence over a four-year period.

Shares of Lynas have gained 55% this year to close at A$18.95 apiece on Monday in Sydney, valuing the company at A$19.1 billion.