Kalgoorlie Rare Earths Processing Facility Project Update – February 2021

Lynas in the news

As the only significant producer of separated Rare Earths outside of China, Lynas has an important role to play in the development of resilient global manufacturing supply chains. Recently (January 2021), we signed an agreement with the United States Government to build a commercial Light Rare Earths separation plant in the U.S., with the U.S. Government to provide funding up to approx. $US30m. This follows a contract signed in July 2020 for Phase 1 work on a U.S. Heavy Rare Earth separation facility.

The proposed Light Rare Earth separation plant will be designed to process Rare Earth carbonate produced at our proposed Kalgoorlie Facility.

Has COVID-19 affected the Rare Earths market?

Lynas produces separated Rare Earth materials for many sectors including magnetic motors for electric and hybrid vehicles as well as wind turbines. Wind energy capacity grew by 8% in 2020 despite the effects of COVID-19 (IEA). While 2020 global car sales are expected to be approx. 14% lower than in 2019, the IEA’s preliminary estimate is for 40% growth in global sales of electric vehicles from 2019, to reach a market share of 4%. Growth was particularly strong in Europe as a result of government policy support.

 

Global electric car sales by key markets 2010-2020e, IEA

Where will the Lynas Facility be located?

Our proposed Rare Earth Processing Facility will be located on Lot 500 Great Eastern Highway, Yilkari, west of Kalgoorlie. Lynas has a sub-lease from the City of Kalgoorlie Boulder and a General Purpose Lease. The site is located in a zone the City has zoned for General Industry and supports Government initiatives to build a critical minerals hub in Kalgoorlie.

A second site has been identified for the long-term storage of by-products from the Kalgoorlie Rare Earth Processing Facility. The site is just north of the Yarri Road Waste Disposal Facility, a municipal waste station operated by the City of Kalgoorlie Boulder.

Lynas is in the process of securing suitable tenure for the Yarri Road Site and we have lodged an application for a General Purpose Lease (GPL) for the site. Baseline and engineering studies for the long-term storage of material are also being undertaken.

 

   

Kalgoorlie Rare Earths Processing Facility Project Update – February 2021

Engineering design

The process engineering and high level design for the Kalgoorlie Rare Earth Processing facility has been done in house by the Lynas team. The detailed engineering design is being carried out by a range of Western Australian companies. Detailed engineering design for earthworks, civils and structural, electrical and control system are all in progress.

Artist Impression of Kalgoorlie RE Processing Facility

New equipment

Procurement of the plant equipment is progressing. The 6m diameter, 110m long kiln ordered in July 2020 is under construction.

Other equipment orders have been placed, including for pressure filters, metal and rubber lined tanks, FRP tanks, spray tower, agitators, and the wet electrostatic precipitator.

Kiln fabrication 

Ongoing consultation

We’re committed to consulting with the Kalgoorlie-Boulder community about our proposed Facility. In 2020, this included an interactive online Community Information Forum, a Pop-Up Information Point on St Barbara’s Square in September, presentations to the KBCCI, and a booth at the Lorna Mitchell Spring Festival.

Updates and FAQs on the proposed Facility and our WA operations are available on our website at: www.lynascorp.com/projects and on the Lynas Western Australia Facebook page (@LynasWA).

In our discussions with community members, the four most commonly asked questions are:

1. Will Lynas have a residential or FIFO workforce?

Answer: We are committed to having a residential workforce for this Facility.

2. What are the opportunities for local businesses?

Answer: We recognise the positive impacts local businesses make on our communities and will preference local businesses and suppliers. 

3. What about radiation?

Answer: Radiation assessments completed in consultation with the Radiological Council and DMIRS have proven that radiation exposures from the project will not exceed acceptable limits. The iron phosphate by-product from our processing is safe and contains low levels of naturally occurring radioactive material. If you haven’t yet seen our radiation safety demonstration, you can watch the video on our facebook page @LynasWA

4. What stack emissions will there be?

Answer: The plant will include a proven 4-stage flue gas treatment plant which removes sulphur and particulates. Predictive air quality modelling conducted in consultation with the EPA and DWER has shown that ground level concentrations of all key emissions will not adversely affect the health, welfare or amenity of sensitive receptors.

The EPA assessment of the project will include an opportunity for public comment. You can subscribe to

 

   

Kalgoorlie Rare Earths Processing Facility Project Update – February 2021

EPA updates at: https://www.epa.wa.gov.au/proposals/lynas-kalgoorlie-rare-earths-processing-facility

Approvals update

The project was referred under the EPBC Act to the Department of Agriculture, Water and Environment. A decision from DAWE was received on 3 September 2020 stating, “The proposed action is not a controlled action”. This means the proposed action does not require further assessment and approval under the EPBC Act before it can proceed.

The project referral (Section 38) and supporting documentation has been submitted to the Western Australian Environmental Protection Agency (EPA) and is available on the EPA website at: https://www.epa.wa.gov.au/proposals/lynas-kalgoorlie-rare-earths-processing-facility

Minor or Preliminary Works

There is the capability under Section 41A(3) of the WA Environmental Protection Act, 1986 for Minor or Preliminary Works that are associated with an implementation of a proposal but are unlikely to have a significant environmental impact. Under this provision, Lynas has applied to establish the access road, clear up to 10ha of the site and establish a pad suitable for the delivery of equipment (to allow delivery of rotary kiln components), some basic site services (office, ablutions) and the kiln footings.

These works do not pre-empt the EPA’s assessment of the overall project and if required, are fully reversible through implementation of an approved site-specific Rehabilitation Management Plan. Lynas has continued to be transparent and is engaging with key stakeholders including nearby landholders on these works so that all parties are fully informed of the minor scale of the works and limited environmental impact.

Further information or feedback can be directed to the Lynas Kalgoorlie Project Team through our contact details below.

Local business opportunities

We’re excited to be working with local Goldfields businesses as we progress our plans for the proposed Rare Earths Processing Facility.

In September 2020, our fencing contract was awarded to local contractors. Built by Geoff and Versatile Plant Hire & Contracting are pictured below on site with our Construction Manager, George.

To register your interest as a supplier, please visit: https://www.lynascorp.com/suppliers-form/

Have a question or feedback?

Contact our Kalgoorlie Project Team at: projects@lynascorp.com