Lynas Corporation Ltd (ASX: LYC) has signed a memorandum of understanding (MOU) with the city of Kalgoorlie-Boulder.
Lynas Corporation is a ‘rare earths’ minerals producer. Rare earths are minerals which are used as inputs to create many of the electronic devices (e.g. mobile phones) we know and use each day. Lynas has Mt Weld in WA, it’s a deposit and mining facility. Lynas is one of the world’s largest producers of rare earths outside of China.
Lynas’ Positive News
The Lynas share price is up 6% after signing a MOU with the city of Kalgoorlie-Boulder for the review and due diligence of potential sites for its new cracking & leaching plant.
The MOU provides for support for delivering a new plant including land availability, water, gas, electricity, access roads, other infrastructure and workforce management.
The city is offering to actively assist Lynas in attracting a residential workforce and to provide assistance to Lynas for the initial staffing of the plant.
Lynas has to relocate its cracking and leaching plant away from Malaysia to Western Asia. Kalgoorlie and the Lynas mine site at Mt Weld are two of the main potential locations.
The rare earths miner has a period of exclusivity for these two potential sites whilst it completes its due diligence.
Lynas CEO & Managing Director Amanda Lacaze said: “Kalgoorlie has a rich mining history and continues to work with industry to develop the region and its communities. Lynas already employs graduates from the WA School of Mines which is located in Kalgoorlie and we look forward to continuing this partnership.
“Access to infrastructure and a skilled workforce makes it an attractive investment destination and with this MOU we can further assess the suitability of potential sites in Kalgoorlie”.
This is good news for Lynas and perhaps for the Kalgoorlie economy. But no decision has been made yet. But today’s share price rise probably accounts for the positive news. I’d rather buy shares in the free report below instead.
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