Australia's Lynas posts 33 pct jump in Q3 rare earths output, amid takeover interest
April 16 (Reuters) - Takeover target Lynas Corp Ltd
on Tuesday reported a 32.5 percent rise in production of rare
earths oxides during the quarter, as it fends off a takeover
offer from retails-to-chemicals conglomerate Wesfarmers Ltd
Output of rare earths oxides (REO) in the quarter ending
March 31 was 5,444 tonnes, compared with 4,110 tonnes produced
Production of NdPr, or neodymium-praseodymium, rose 19.4
percent to 1,591 tonnes, a new quarterly record, said Lynas, the
world's only major producer of rare earths outside China.
The record came despite a slower start up in January, with
more than 600 tonnes produced in the month of March, it said.
Third-quarter sales revenue rose nearly 18 percent to
Lynas added that in a move to combat continued weakness in
market prices, it would reserve all NdPr product for its
strategic business partners, which could lead to a build-up in
inventory in the fourth quarter.
Lynas, which operates an $800 million processing plant in
Malaysia, has been locked in a dispute with the Southeast Asian
nation on waste disposal after it was told to remove years of
accumulated waste at the facility in order to have its licence
Wesfarmers last month approached Lynas with a A$1.5 billion
($1.08 billion) takeover offer.
Lynas said at the time that it would not engage with
Wesfarmers on its "highly conditional" offer.
($1 = 1.3945 Australian dollars)
(Reporting by Rashmi Ashok in Bengaluru
Editing by Richard Pullin)
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