Resources Minister Madeline King lauds $800m Lynas Kalgoorlie plant as ‘amazing opportunity’ for Goldfields

Lynas Rare Earths’ Kalgoorlie-Boulder processing facility, lauded as the largest of its kind outside of China, has been officially opened.

The $800 million plant on the western edge of the city was officially opened by Federal Resources Minister Madeline King on Friday, who described the facility as an “amazing opportunity” for the region.

Lynas processed the first batch of mixed rare earth carbonate in June, and has since ramped up production in line with increased production at Mt Weld and Lynas Malaysia, along with market demand.

A sod-turning ceremony took place in April 2022 at the plant, with original estimates for the cracking and leaching facility at $500m.

In light of critical labour shortages and higher commissioning costs, Lynas chief executive and managing director Amanda Lacaze said she was proud of how the company had navigated significant challenges to reach production.

“We made the decision to construct this facility here in Kalgoorlie in December 2019,” she said.

“In March 2020 there was a global pandemic so . . . to go from that to production this year, it is truly remarkable.”

In July, BHP announced it would suspend its Nickel West arm for at least three years, including operations at the Kalgoorlie smelter and its major mines at Mt Keith and Leinster.

Ms King said given the recent collapse of the nickel industry, Lynas’ rare earths processing facility was an important asset to the Goldfields.

“Kalgoorlie Nickel Smelter was really important to Kalgoorlie and Kambalda — it had been there for over 50 years,” she said.

“So to have another operation of this kind of magnitude that (employs) hundreds of people is super important.

“This is the first of its kind in Australia . . . and it’ done by blood, sweat, tears, and hard work for the people and the management of Lynas.”

Lynas said the plant employed between 115 and 120 residential workers.

The facility processes rare earth concentrate from Lynas’ Mt Weld mine, about 380km north-east of Kalgoorlie-Boulder.

The material is mixed with sulphuric acid and cracked at a high temperature in a 110m-long, 6m-high rotating kiln.

Mixed rare earth carbonate produced in Kalgoorlie-Boulder is further refined at Lynas’ processing plant in Malaysia.

The company had a contract with BHP to supply sulphuric acid by-product from the Kalgoorlie smelter, which was put into care and maintenance last month.

Ms Lacaze said Lynas was working to find an alternative reliable supply of sulphuric acid to support the cracking and leaching process.

“The decision by BHP. . . to shut down that smelter has been difficult for us,” she said.

“We are working, to some extent, with BHP, but really on what alternative sources we can have and how we can actually get that material here.”