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Key points
- The Lynas Rare Earths share price is moving higher on its latest news
- Ministerial approval has been received for the Kalgoorlie rare earths processing facility
- Conditions set out in the report are in line with Lynas' proposed conditions
The Lynas Rare Earths Ltd (ASX: LYC) share price is rising after the company received the go-ahead for its Kalgoorlie rare earth processing facility.
At the time of writing, shares in the rare earths producer are up 3.59% to $9.23. This follows a bitter slump in the company's shares over the last week despite posting record sales in its latest quarterly update.
Nonetheless, the focus for investors today is the latest news for the Kalgoorlie facility. So, let's go over the announcement with a fine-tooth comb.
Another step closer to local processing
Investors are taking a liking to the Lynas share price on the ASX this morning as the market considers the latest milestone in the company's bid to construct a processing facility in Kalgoorlie, Western Australia.
Yesterday afternoon, the rare earths company revealed it had received ministerial approval for the proposed facility. This comes more than six months after the environmental review process began.
According to the release, the Ministerial Statement for the Kalgoorlie processing facility has been issued under the Environmental Protection Act 1986 (WA). This statement is important to investors and the company, as it sets out the conditions for the construction and operation of the facility.
In a pleasing development for shareholders, the conditions passed on were consistent with those Lynas proposed.
Along with a raft of other conditions, some of the limitations set by the EPA report include:
- Processing of rare earth concentrate limited to 162,000 dry tonnes per annum
- Rare earth carbonate production limited to 68,000 dry tonnes per annum
- Proposal life of 25 years
Following on from this approval, Lynas is now working on finalising the secondary approvals. These approvals are necessary to implement the project.
What's happening with the Lynas share price?
Despite a cracking year in 2021, the Lynas share price has been off to an underwhelming start this year. Shares are down more than 12% since the beginning of the year, marking a considerable underperformance of the S&P/ASX 200 Index (ASX: XJO).
While investors have been selling down Lynas on the ASX, the price of rare earths remains elevated. In fact, neodymium is holding at a high of ~US$202,000 per tonne.
