Lynas signs up new rare earths customer
November 9, 2010 - 8:09PM
Shares in Lynas Corporation Ltd rose after the rare earths explorer said it had signed a new long-term supply agreement with a European customer.
Lynas shares closed up 7.5 cents, or 6.33 per cent, at $1.26 after almost 60 million shares in the company changed hands, making it the fifth most traded stock by volume.
Lynas did not name the new customer or quantify the amount of ore to be sold under the contract, but said the contract had an evergreen clause that allowed it to be extended upon mutual agreement.
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It said the rare earths would come from its Mount Weld project in Western Australia, which is slated to begin production in 2011.
"Being the first new rare earths project into production outside China gives Lynas a significant advantage in developing close relationships with the market consumers," executive chairman Nicholas Curtis said in a statement on Tuesday.
"With six signed contracts and two letters of intent already in place, the company anticipates further contract announcements over coming months."
Lynas said it continued to be engaged with potential customers in Europe, Japan and the US.
© 2010 AAP
http://news.smh.com.au/breaking-news-business/lynas-signs-up-new-rare-earths-customer-20101109-17lxm.html
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