Rare earths miner Lynas has sealed a much-needed contract with the US Defence Department for a proposed processing facility in Texas.
It comes as Lynas’ Malaysian operations remain closed due to the coronavirus.
In a statement to the ASX on Thursday, Lynas said the US Department of Defence had selected the rare earths group for Phase 1 funding of its proposed rare earths processing operations in Texas. Lynas shares soared as much as 20 per cent to a high of $1.685 on Thursday following the statement before closing up 17.56 per cent to $1.64.
In the statement Lynas said it “may lead to further contracts for commercial-scale production and operation” of a processing facility however this is not guaranteed. “Today’s announcement creates the foundation for a facility in the US that will assist the US to avoid the supply chain vulnerability that has been exposed over the past year,” Chief executive Amanda Lacaze said.