Rocks minister Madeleine King lauds Lynas Kalgoorlie plant as ‘huge deal’ for West’s rare earths charge

Ambitions to make Australia a competitor in the rare earths race have made headway as listed company Lynas cuts the ribbon at the biggest plant outside of China refining the sought-after commodity.

Federal Resources Minister Madeleine King will open the new plant in Kalgoorlie on Friday, and lauded its opening as “a huge deal for Western Australia, and a massive step for Australia.”

Lynas Rare Earth’s $800 million cracking and leaching operation is the first in Australia, and has been built to turn mined rare earth ores from Mt Weld into a carbonate. The carbonate can then be processed into separated rare earth materials.

But the endeavour has incurred its fair share of cost blowouts and delays, coming in at about $225m over budget. Sourcing sulphuric acid, required to feed the plant, has also proved tricky after Lynas’ main supplier BHP Nickel West shut up shop last month.

The last update from Lynas on the project came in October, when chief executive Amanda Lacaze said ramp up to full pelt had been progressing.

Prices for the commodity have also been stuck in a glut for several years due to what has been blamed on an overstocking of supplies in China, the dominant player in the market.

But there has been a concentrated effort by Western countries to try and shore up their own supply channel of rare earths and usurp China’s control over the commodity, which is a critical input for the magnets used in high-tech military equipment and defence applications.

“Processing more of our critical minerals and rare earths here in this country is a big part of the Albanese Government’s plans for Building Australia’s Future,” Ms King said.

“Projects like the Lynas Rare Earths Processing Facility will deliver direct economic benefits to Australia while strengthening our sovereign capability.”

Lynas shares last traded at $8.02 in a $7.5 billion market cap.