Rare earths producer Lynas Corporation Ltd (ASX: LYC) has been awarded 'Major Project Status' by the Australian Government to establish its new rare earths processing plant in Kalgoorlie, Western Australia.
Despite the news, the Lynas share price has dipped 2.73% today and is trading for $2.13 at the time of writing.
State and federal support
'Major Project Status' formally recognises the strategic significance of Lynas' project to the Australian economy and provides a single-entry point for Commonwealth Government approvals as well as project support and coordination and assistance with State government approvals. Lynas will also seek the support of government and commercial partners in local infrastructure development.
The new project will also serve as a foundation for the development of infrastructure in Kalgoorlie, including utilities and the production of chemicals used in minerals processing beyond the rare earths industry.
The new project aligns with key government policies, including regional development, value-added processing and infrastructure development. The project also supports the Australian Government's Critical Minerals Strategy.
Background on Lynas' new plant
The Lynas Kalgoorlie plant will undertake cracking and leaching of rare earth concentrate from Lynas' Mt Weld mine, which is also located in Western Australia's Goldfields region. Lynas will undertake to also explore opportunities for additional processing in Kalgoorlie.
During peak construction, the plant is expected to create up to 500 jobs and increase Lynas' workforce in the Goldfields to over 200 people. Lynas plans to staff the plant with a local, residential workforce and continue its association with Curtin University and the WA School of Mines in Kalgoorlie.
As previously announced last December, the project has also been awarded 'Lead Agency' status by the Western Australian government.
