MELBOURNE, July 31 (Bernama) -– Rare earth miner, Lynas Corporation, says the final testing of its rare earth refinery in Pahang was 64 per cent complete at the end of June.
It estimated the final cost of the project had increased by about A$4 million because of claims from sub-contractors and additional project management costs, the miner said in its quarterly report released on Tuesday.
It said the total cost on the first phase of the Malaysian plant was about A$652.8 million.
The company completed building the first phase of the plant in three months to June 30 and is continuing work on the expansion of the project, which is scheduled for completion early next year.
It said its "operational preparedness" programme was 97 per cent complete at the end of the quarter.
Lynas also said the macroeconomic conditions in China remain relatively subdued as it said the price for rare earth has significantly fallen from last year's levels.
Lynas said Japan, the world's largest export market for rare earth, had also experienced soft manufacturing conditions, driven by weaker demand in the transport equipment, chemicals and general machinery sectors.
Chinese industrial production this year averaged only 10.5 per cent growth, well below the average growth rate of 14.7 per cent over the past 10 years, Lynas said.
"This subdued macroeconomic backdrop has led many rare earth-consuming companies to manage their operations on reduced inventories," the company said.
"A recovery in global manufacturing activity and cyclical inventory re-stocking are expected to lead to increased demand for rare earth.
However, the timing of this recovery remains uncertain," it added.