Wesfarmers (Perth, Australia) says it has made an offer to acquire Lynas (Kuala Lumpur, Malysia), a rare-earth mining company, for $1.1 billion. Wesfarmers states that the proposal is a premium of 44.7% to the last closing price and a premium of 36.4% to Lynas’s 60-day weighted average price. Lynas is listed on the Australian stock exchange.
Wesfarmers says it is “uniquely placed to support Lynas’s future through further capital investment to support downstream processing assets and realize the full potential of the Mount Weld ore body.” According to Lynas, the company’s Mount Weld Central Lanthanide Deposit (CLD) in Western Australia is one of the highest-grade rare-earth deposits in the world. Lynas processes the CLD ore at the Mount Weld concentration plant to produce a rare-earth concentrate that is sent for further processing at the Lynas Advanced Material Plant (LAMP) near Kuantan, Malaysia.
Lynas says that LAMP is one of the largest and most modern rare-earth separation plants in the world. The plant is designed to treat the Mount Weld concentrate and produce separated rare-earth oxide products for sale in locations including Japan, Europe, China, and North America. According to a Reuters report, the plant faces issues obtaining license renewals due to concerns over waste storage. Lynas announced in November 2018 that it would likely interrupt production of rare-earth elements for the rest of that year.
Rob Scott, managing director at Wesfarmers, says that acquiring Lynas “leverages our unique assets and capabilities, including in chemical processing. We also acknowledge the importance of the LAMP in Malaysia,” he says.
Wesfarmers is a diversified company with a wide range of businesses. Its industrials division consists of chemicals, energy, and fertilizers.
Rare earths have key applications in the electronics, automotive, environmental protection, and petrochemical sectors.
By Kartik Kohli
Source: Chemical Week
When things are rushed, there’s a higher chance they can go wrong. We ended up with factories being built almost solely for the economic multiplier effect from construction activity without sufficient regard for raw-material supply and how to sell the output. We saw this in purified terephthalic acid.
INEOS has already committed over £500m spend on projects which are approved and currently being implemented at Grangemouth. This includes investment in our New Energy Plant, which is due for completion in late 2023 and will supply energy to all our site operations and the highly efficient technology will drive down emissions by at least 150,000 tonnes of CO2 per annum.
As with its other waste collection processes, Indaver will collect post-consumer polystyrene (PS), such as yogurt pots and single-use packaging, and recycle and produce the r-styrene through a proprietary depolymerization technology at its Antwerp, Belgium site.
