MELBOURNE/TOKYO (Reuters) – Australia’s Lynas Corp said on Thursday it signed a 10-year loan extension on easier terms with its long-time Japanese backers, increasing its commitment to supply rare earths to Japanese customers.
The extension to 2030 to repay $147 million will help Lynas, the only major producer of rare earths outside China, follow through on its 2025 expansion plans, with greater cash flows available thanks to the improved terms.
Agreement - Japan - Oil - Gas - Metals
Under the new agreement, Japan Oil, Gas and Metals National Corp (JOGMEC) and Sojitz Corp will reduce principal payments due and the interest charged on the loan.
Japanese customers stand to benefit from the new agreement, with Lynas promising to prioritize them and supply up to 3,600 tonnes per year until 2025 and up to 7,200 tonnes a year until 2038.
Achievement - Japan - Deal - Priority - Supply
“The biggest achievement for Japan from the latest deal is to secure priority supply rights until 2038 in return for extending the loan and relaxing payment requirements,” an official at Japan’s Agency for Natural Resources and Energy, an arm of the industry ministry, told Reuters.
Last week, Lynas said it was stockpiling neodymium and praseodymium (NdPr), key ingredients in permanent magnets used in electric vehicles and wind turbines, for “strategic customers”. The move comes as markets are concerned that Beijing may use the minerals as a weapon in...
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