Lynas Rare Earths Limited · ASX:LYC
Lynas Rare Earths — Diggers and Dealers 2008
20 slides from Lynas Rare Earths's conference presentation, Aug 5, 2008
Slide 1: Diggers and Dealers Presentation August 2008
For personal use only Diggers and Dealers Presentation August 2008
Slide 2: Disclaimer
Disclaimer For personal use only Not for distribution in the US ► 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 info
Slide 3: Lynas is an ASX 200 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 We will lead the growth of the global Rare Earths industry by creating a reliable, fully-integrated source of supply from mine through to a diverse set of customers Values Strive for excell
Slide 4: Rare Earths underpin new materials technology required to sustain the needs of today's society
Rare Earths underpin new materials technology required to sustain the needs of today’s society For personal use only Improve Energy Efficiency Environmental Protection Enable Digital Technology through lower consumption through emission control smaller & more powerful Compact fluorescent lights
Slide 5: 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 6: Hybrid technology is totally dependent upon Rare Earths
Hybrid technology is totally dependent upon Rare Earths For personal use only HYBRID electric motor and generator HYBRID NiMH battery Neodymium Lanthanum Praseodymium Neodymium Dysprosium Cerium Terbium Enabling better emission standards and lower energy consumption -6-
Slide 7: A Rare Earths supply structural deficit looms as Chinese supply appears to be at capacity
A Rare Earths supply structural deficit looms as Chinese supply appears to be at capacity For personal use only Chinese Production Limits Chinese Government Policy Largest REO mine Baotou (50% of world Strategic value of REO well understood supply) operating at capacity REO is a by-product of iron
Slide 8: Imbalance of Supply and Demand suggests further price increases
Imbalance of Supply and Demand suggests further price increases For personal use only Price Development Supply – Demand Imbalance (US$/kg) (REO Metric Tonnes) 2006 2012 US$15.25/kg Based on Mt Weld Composition, FOB China basis 16.00 190000 15.00 28 July 08 Total Demand 108,000 188,000 14.00 165000 R
Slide 9: Lynas Mt Weld will be the 1st non-Chinese fully integrated source of supply
Lynas Mt Weld will be the 1st non-Chinese 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 to be constructed at Mt Weld Containers use
Slide 10: 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 11: Mt Weld's Central Zone Pit is a relatively small open cast pit, mined on a campaign basis
Mt Weld’s Central Zone Pit is a relatively small open cast pit, mined on a campaign basis For personal use only 10 – 20% 20 – 30% 30 – 40% + 40% -11-
Slide 12: First Mount Weld Rare Earths mining campaign completed
First Mount Weld Rare Earths mining campaign completed For personal use only Loss time injury free Ahead of schedule On budget -12-
Slide 13: 773,000 tonnes of ore stockpiled on site
773,000 tonnes of ore stockpiled on site For personal use only -13-
Slide 14: 18% Rare Earths Oxide ore for first two years of operation within stockpiles
18% Rare Earths Oxide ore for first two years of operation within stockpiles For personal use only -14-
Slide 15: The Concentration Plant to be built at Mt Weld
The Concentration Plant to be built at Mt Weld For personal use only ► Process Engineering Design over 95% complete ► Mintrex appointed as Superintendent ► Site clearance completed ► Works Approval received from Kalgoorlie DEC in July 2008 ► Australian principle construction contract tender short li
Slide 16: Containers of concentrate shall be trucked then railed to port for shipment to Malaysia
Containers of concentrate shall be trucked then railed to port for shipment to Malaysia For personal use only ► Transportation of containers to Malaysia via Esperance or Perth -16-
Slide 17: 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 18: Construction of the world's largest Rare Earths processing plant has commenced
Construction of the world’s largest Rare Earths processing plant has commenced For personal use only -18-
Slide 19: The Crown Polymetallic resource at Mt Weld is the world's second largest niobium resource
The Crown Polymetallic resource at Mt Weld is the world’s second largest 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%
Slide 20: 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