Lynas Rare Earths Limited · ASX:LYC
Lynas Rare Earths — 4th International Rare Earths Conference 2008
24 slides from Lynas Rare Earths's conference presentation, Nov 19, 2008
Slide 1: 4th International Rare Earths Conference
For personal use only 4th International Rare Earths Conference 19 November 2008 Nicholas Curtis
Slide 2: Disclaimer
Disclaimer For personal use only ► The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe
Slide 3: Lynas is an ASX company with a clear vision within the Rare Earths industry
Lynas is an ASX 200 company with a clear vision within the Rare Earths industry For personal use only Vision Be a global leader in Rare Earths for a sustainable future Values Excellence in safety, health and the environment Learn from our differences and be open to change Operate in an honest,
Slide 4: Demand for Rare Earths is evenly spread by application and most are growing strongly
Demand for Rare Earths is evenly spread by application and most are growing strongly For personal use only 2006 Demand by Application Growth Forecast by Application Application Growth rate 2012 demand % p.a. tonnes Other, 7% Glass Additive, Ceramics, 5% 12% • Glass Additives 1% 14,000 Phosphors, 8%
Slide 5: The sustainability of Rare Earths supply is becoming more fragile
The sustainability of Rare Earths supply is becoming more fragile For personal use only Chinese Government Policy Chinese Production Limits Strategic value of REO well understood Largest REO mine Baotou (50% of world supply) operating at capacity Mining quota of 77,500t (2% vs 2006) REO is a by-pr
Slide 6: The resultant structural deficit will be filled in part by Lynas
The resultant structural deficit will be filled in part by Lynas For personal use only Price Development Supply – Demand Imbalance (US$/kg) (REO Metric Tonnes) 2006 2012 Based on Mt Weld Composition, FOB China basis 16.00 US$11.83/kg 190000 15.00 10 Nov 08 Total Demand 108,000 188,000 14.00 165000 1
Slide 7: Lynas is on track to build a sustainable, transparent, fully integrated source of supply
Lynas is on track to build a sustainable, transparent, fully integrated source of supply For personal use only Mining - Australia Open pit mining at Mt Weld Contractor mining on a campaign basis Rare Earths Concentration - Australia Concentrator using flotation under construction at Mt Weld
Slide 8: The current mining operation is within the Central Zone Pit which has 648,000t REO
The current mining operation is within the Central Zone Pit which has 648,000t REO For personal use only Mt Weld Tenements The Total CLD Sector Mineral Resource (2.5% REO cut-off) Updated in March 2008 Category Tonnes Grade Tonnes (Mt) (%REO) (kt) REO Measured 2.21 14.7 324 Indicated 3.84 11.5 441 I
Slide 9: Mt Weld's Central Zone Pit has a natural advantage in grade and composition
Mt Weld’s Central Zone Pit has a natural advantage in grade and composition For personal use only Mt Weld US$/kg Baotou Composition Rare Earth Elements Composition 10 Nov 2008 By Weight By Weight Lanthanum Oxide 25.60% 8.50 25.70% Cerium Oxide 45.74% 4.80 51.30% Praseodymium Oxide 5.42% 18.50 5.40%
Slide 10: Classification of Mineral Resources for the Southern Zone within the CLD Sector
Classification of Mineral Resources for the Southern Zone within the CLD Sector For personal use only Average REO Distribution of Mineral The Southern Zone Mineral Resource Resources (%) (2.5% REO cut-off) Central Southern Category Tonnes Grade Tonnes Rare Earth Oxide (Mt) (%REO) (kt) REO Zone Zone
Slide 11: First Mt Weld Rare Earths mining campaign completed
First Mt Weld Rare Earths mining campaign completed For personal use only Loss time injury free Ahead of schedule On budget -11-
Slide 12: 773,000 tonnes of ore stockpiled on site
773,000 tonnes of ore stockpiled on site For personal use only -12-
Slide 13: The Concentration Plant being built at Mt Weld
The Concentration Plant being built at Mt Weld For personal use only ► Process Engineering Design over 95% complete ► Mintrex appointed as Superintendent ► Site clearance completed ► Bulk earthworks are well underway ► Abesque Engineering have mobilised to site for the construction of the Concentrat
Slide 14: Containers of concentrate shall be trucked to port for shipment to Malaysia
Containers of concentrate shall be trucked to port for shipment to Malaysia For personal use only ► Transportation of containers to Malaysia via Fremantle -14-
Slide 15: State of Pahang on the east coast of Malaysia is an excellent location for processing
State of Pahang on the east coast of Malaysia is an excellent location for processing For personal use only ► Strong Federal, State, and Local Government support Lynas granted “strategic pioneer status” with 12 year tax free period Gebeng Industrial ► Excellent infrastructure in Gebeng Area Clos
Slide 16: The Advanced Materials Plant Malaysian site
The Advanced Materials Plant Malaysian site is 100 hectares For personal use only -16-
Slide 17: Malaysia site construction: Piling for post treatment workshop
Malaysia site construction: Piling for post treatment workshop For personal use only -17-
Slide 18: Lynas-constructed stormwater detention pond
Lynas-constructed stormwater detention pond For personal use only -18-
Slide 19: Lynas is establishing a sustainable platform for long term operations
Lynas is establishing a sustainable platform for long term operations For personal use only ► Comprehensive Safety, Health, Environment and Community policies and processes in place ► Multi-million dollar investment, approximately US$35m, in waste gas, waste water and waste solid treatment plant and
Slide 20: Rare Earths project schedule – 1st Phase 10,500tpa
Rare Earths project schedule – 1st Phase 10,500tpa For personal use only 2007 2008 2009 STAGE OF DEVELOPMENT Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Grade control drilling Mining Campaign Engineering Design Purchase Order and Equipment Delivery Civil Works Equipment Installation Commissioning - Concentr
Slide 21: Key supply contracts have been signed
Key supply contracts have been signed For personal use only 1st Customer Agreement - Supply Contract 4th Customer Agreement – Letter of Intent US$90M US$80M Long term 5 year contract Long term multiple year contract Cerium, Europium, Terbium & Lanthanum Product from Phase I & Phase II of
Slide 22: Lynas – building a stable supply chain for vital raw materials to a sustainable world
Lynas – building a stable supply chain for vital raw materials to a sustainable world For personal use only Applications Raw Material Supply Lynas The growth drivers are : China dominates the Foundation on the 1. More efficient use of market with 95% supply richest Rare Earths ore energy body in the
Slide 23: The Crown Polymetallic resource at Mt Weld is a world scale niobium resource
The Crown Polymetallic resource at Mt Weld is a world scale niobium resource For personal use only Category Indicated Inferred Total Mt 1.5 36.2 37.7 Crown Ta2O5 0.037% 0.024% 0.024% Polymetallic Nb2O5 1.4% 1.06% 1.07% Resource TLnO 1.65% 1.14% 1.16% ZrO 0.32% 0.3% 0.3% FeO3 46.5% 42.6% 42.8% P2O5 8
Slide 24: Notes
Notes: For personal use only The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Rob Duncan and Brendan Shand, who are members of The Australasian Institute of Mining and Metallurgy. Both Rob Duncan and Brendan Sha
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