AAP Finance

Lynas sticks to stockpiling strategy

By AAP Newswire

Lynas won't cash in on the sharp short-term increase in rare earths prices related to the US-China trade war, saying it will stick to the long-term strategy it announced last month.

The ASX-listed firm says it will keep stockpiling production of its major rare earth element, neodymium praseodymium, as it looks further ahead.

Lynas said Friday its strategic position as the only significant rare earths miner and processor outside China had been emphasised in recent weeks, with increased attention on the in-demand materials.

"The market price for NdPr (neodymium praseodymium) has increased by approximately 40 per cent over the past 60 days in response to these global issues," the company said in a letter to shareholders.

"While short term increases are pleasing, Lynas remains focused on longer term trends."

Lynas, a takeover target for Wesfarmers earlier this year, last month unveiled detailed plans to spend $500 million to boost production and set up an initial processing facility in WA.

China's state media warned last month the country may curb exports to the US of rare earth metals, which are used in military equipment and consumer electronics.