“It is expected that lost production can be recovered within the financial year,” the company said in a statement, referring to the year through June 30. However, Lynas added that power supply to its Australian operations “remains unpredictable.”
Lynas is one of only two major producers of rare earths outside China, which holds a near-monopoly in production of the key metals used in high-performance magnets for advanced military applications and renewable technologies.
The company said the frequency and duration of electricity outages at its Australian operations this month were at a level that has led to “significant lost production” of mixed rare earth carbonate. “Consequently, production of finished goods at our Malaysian facility will be affected,” it said.
China’s imposition of rare earth export restrictions this year raised fears of manufacturing disruptions and prompted companies and governments worldwide to accelerate efforts to establish supply chains independent of Beijing.
See also: No silver lining in meltdown
Lynas said last month that buyers of rare earths need to accept premium prices to get secure and stable supplies from outside China.
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