Lynas Corporation Ltd will continue to hold production at its Malaysian mine at phase one levels until the rare earths market improves, the company said as it reported June quarter production.
In a statement to the Australian Securities Exchange, the company said it produced 144 tonnes on an REO equivalent basis at the project after commencing commercial production in the June 2013 quarter.
But Lynas will keep production at the Lynas Advanced Materials Plant at 11,000 tonnes per annum REO, in response to the weak rare earths market, “until prices recover”.
Phase two expansion of the project would be completed by the end of the third quarter, although increased production would remain dependent on market conditions.
Meanwhile, the group reiterated its intention to cut operational and corporate and defer capital expenditure, saying it would “continue explore further ways to optimise the group’s cost base and minimise working capital requirements.”