Slide 1: Rare Earths: We Touch Them Everyday
Rare Earths WE TOUCH THEM EVERYDAY For personal use only Diggers & Dealers Presentation August 2011
Slide 2: Disclaimer
Disclaimer For personal use only This Presentation has been prepared by Lynas Corporation Limited (ABN 27 009 066 648) (Lynas or the Company). This Presentation contains summary information about Lynas and its subsidiaries (Lynas Group) and their activities current as at the date of this Presentatio
Slide 3: Lynas will offer the first new source of supply of Rare Earths outside of China
Lynas will offer the first new source of supply of Rare Earths outside of China For personal use only LYNAS VITALS AT A GLANCE VISION: Be the leader in Rare Earths for a sustainable future. EXCHANGES: ASX (code LYC), OTC (code LYSDY) Mount Weld INDICES: ASX 100, MSCI Australia SHARES: 1,714m on issu
Slide 4: Rare Earths cannot be substituted in many applications
Rare Earths cannot be substituted in many applications For personal use only RARE EARTHS: LANTHINIDES PLUS YITTRIUM – UNIQUE PROPERTIES • Chemical Unique electron configuration • Catalytic Oxygen storage and release • Magnetic High magnetic anisotropy and large magnetic moment • Optical Fluo
Slide 5: 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 Energy efficiency through Environmental protection Smaller yet more powerful lower consumption through lower emissions digital technology • Compact Fluorescent Lights • Wind turbine •
Slide 6: Supply shortfall and increasing prices are a result of structural change in China
Supply shortfall and increasing prices are a result of structural change as China addresses environmental and mining issues For personal use only HISTORIC AND FORECAST SUPPLY, DEMAND AND PRICING 200000 240 t REO US$/kg US$232.68/kg 225 180000 29 July 2011 210 160000 195 180 140000 165 150 120000 135
Slide 7: The mine is within the Central Lanthanide Deposit
The mine is within the Central Lanthanide Deposit (CLD), a Resource of 9.9 million tonnes at 10.7% for 1.1 million tonnes of contained REO For personal use only CENTRAL LANTHANIDE DEPOSIT AND DUNCAN DEPOSIT RESOURCES Central Lanthanide Deposit & CLD & Duncan Mineral Resource Duncan Deposit at Mount
Slide 8: Latest drilling program at Mount Weld is very encouraging
Latest drilling program at Mount Weld is very encouraging with a number of significant results For personal use only MOUNT WELD RESOURCE IMAGE AND LATEST DRILLING CAMPAIGN Mount Weld inferred resource blocks >8% Latest drilling campaign at Mount Weld REO from wide-spaced drilling Recent significant
Slide 9: Mount Weld initial mining campaign complete, loss-time-injury-free, on budget
Mount Weld Rare Earths initial mining campaign complete, loss-time-injury-free, on budget For personal use only MOUNT WELD STOCKPILES WITH RARE EARTH OXIDE PERCENTAGES DUNCAN DEPOSIT (DD) Offices 773,000t on stockpiles 8% 13% DD CLD 17% DEPOSIT 26% 15% 13% 21% 20% Conc. DD Plant 1.5km 9
Slide 10: The Concentration Plant commenced feed of ore in May 2011
The Concentration Plant commenced feed of ore in May 2011 For personal use only OVERHEAD VIEW OF THE CONCENTRATION PLANT 10
Slide 11: Commissioning progressing well; grade in line with, and recovery exceeding, plan
Commissioning progressing well; grade in line with, and recovery exceeding, planned ramp up schedule For personal use only MOUNT WELD CONCENTRATION PLANT Plant throughput rates continue to ramp up Concentration Plant July 2011 July ramp- Performance MTD up plan Final concentrate 36.0% 36.0% grade
Slide 12: Lynas has completed the acquisition of additional Rare Earths resources in Malawi
Lynas has completed the acquisition of additional Rare Earths resources in Malawi, Africa For personal use only Key points for Kangankunde (KGK) Fully permitted for operations Inferred Resource of 107,000 tonnes REO at an average grade of 4.24% REO, with a 3.5% cut- off grade. At a 3% REO cut-
Slide 13: Lynas now has two JORC compliant deposits, test work commenced on Kangankunde
Lynas now has two JORC compliant deposits, test work has commenced on Kangankunde For personal use only The Kangankunde Carbonatite Next steps for the Kangankunde RE deposit Commencement drilling program to confirm existing resource estimate and investigate potential expansion along strike and at
Slide 14: Containers of concentrate will be trucked to Fremantle for shipping to Malaysia
Containers of Rare Earths concentrate will be trucked to Fremantle for shipping to Malaysia For personal use only • Mount Weld to Fremantle = 1000km 14
Slide 15: Gebeng, Malaysia, has exceptional infrastructure for a separation facility
Gebeng, Malaysia, has exceptional infrastructure required for a Rare Earths separation facility For personal use only PROCESSING HUB WITH EXCEPTIONAL INFRASTRUCTURE Gebeng Industrial INDUSTRIAL INFRASTRUCTURE Estate, Energy, chemicals, water, industrial land East Coast Malaysia KNOWLEDGE INFRASTRU
Slide 16: Schematic - Lynas Advanced Materials Plant core process
Schematic - Lynas Advanced Materials Plant core process, which uses mature industry technology For personal use only 16
Slide 17: The Lynas Advanced Materials Plant (LAMP) overview
The Lynas Advanced Materials Plant (LAMP) is 0.8km wide (N-S) and 1.4 km long (E-W) For personal use only JULY 2011 OVERVIEW OF LEACHING, UP AND DOWNSTREAM SEPARATION AND PRODUCT FINISHING WORKSHOPS 17
Slide 18: Piping and electrical installation is well underway
Piping and electrical installation is well underway and installation of equipment is ongoing For personal use only Cracking (Rotary Kiln) Gas Treatment Primary Leaching Secondary Leaching 18
Slide 19: All major tanks are now in place and tunnel furnaces progressing
All major tanks are now in place and the tunnel furnaces are progressing well For personal use only Upstream Extraction Downstream Extraction Post Treatment Tunnel Furnaces 19
Slide 20: Ancillary services are also progressing well
Ancillary services are also progressing well For personal use only Maintenance Workshop Reagent Storage and Preparation TNB Substation Reagent Storage Admin Building 20
Slide 21: Phase construction costs are fully funded, term sheet received for debt facility
Phase 1 construction costs are fully funded, indicative term sheet received for debt facility to meet working capital requirements For personal use only FORECAST TOTAL SPEND TO 30/06/11 FUTURE SPEND ESTIMATED CONSTRUCTION AND OTHER CAPITAL COSTS A$m A$m A$m Mount Weld Concentration Plant 76.8 69.0 7
Slide 22: IAEA report confirms the LAMP is expected to be safe and compliant
IAEA report confirms the LAMP is expected to be safe and fully compliant with international standards For personal use only IAEA RECOMMENDATIONS REQUIRED FOR PRE-OPERATING LICENCE Required for pre- IAEA Recommendation Lynas actions operating licence Lynas to submit, before the start of operations, a
Slide 23: The Strategic Alliance with Sojitz provides stable long term supply for Japan
The Strategic Alliance with Sojitz shall provide a stable and long term source of supply for the Japanese market For personal use only LYNAS, SOJITZ AND JOGMEC HAVE EXECUTED DEFINITIVE AGREEMENTS Sojitz – Lynas Strategic Alliance Financing Availability Distribution & Agency Agreement Agreement Agree
Slide 24: Letter of Intent signed with Siemens to establish a magnet JV
Letter of Intent signed with Siemens to establish a JV company for the sustainable production of neodymium-based Rare Earths magnets For personal use only LYNAS AND SIEMENS INTEND TO FORM A JOINT VENTURE FOR MAGNET PRODUCTION LYNAS SIEMENS Magnet technology and Long term supply contract for manufact
Slide 25: Eight customer agreements have been signed
Eight customer agreements have been signed; Strategic Alliance with Sojitz to provide stable supply to Japanese customers For personal use only Rhodia Customer Agreement - 8th Customer Agreement – Supply Contract Supply Contract Strategic Alliance with Sojitz • Long term contract • >US$200M¹ Minim
Slide 26: Lynas – online in 2011, delivering Rare Earths globally
Lynas – online in 2011, delivering Rare Earths globally For personal use only • Our vision is to be the leader in Rare Earths for a sustainable future. • We are close to realising this vision. • Lynas will be online in 2011, delivering Rare Earths globally. This is the first new production outside o
Slide 27: Note
NOTE 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 Brendan Shand, who is a member of The Australasian Institute of Mining and Metallurgy. Brendan Shand is an employee of Lynas Corporatio