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corrected-update 2-rare earths producer lynas secures better loan terms with japanese backers

by:Newland     2019-10-23
Lynas, Australia, said on Thursday it signed a 10-
Extend the loan term with simpler terms
Supporters in Japan have increased their commitment to supply rare earths to Japanese customers.
Extended to 2030, the repayment of $0. 147 billion will help Lynas, the only major producer of rare earths outside China, to implement its 2025 expansion plan, with greater cash flow due to improved terms.
According to the new agreement, Japan National Corporation for oil, gas and metals (JOGMEC)
The two-day company will reduce the principal due and the interest on the loan.
Japanese customers will benefit from the new agreement, which Lynas promises to supply up to 7,200 tons per year by 2038, and Japan\'s supply priority has doubled from the previous agreement, which covers 2025.
\"The biggest achievement Japan has received from the latest deal is to obtain priority supply rights by 2038 in exchange for extending loans and relaxing payment requirements, an official from Japan\'s Ministry of Industry\'s Natural Resources and Energy Agency told Reuters.
Last week, Lynas said they were storing nd and pr (NdPr)
Key components in permanent magnets for electric vehicles and wind turbines for \"strategic customers \".
The move comes amid fears that Beijing could use the minerals as weapons in a trade war with the United States.
The miner and its Japanese supporters began talks last year on extending loans.
Since then, the company has been hit by concerns about the extension of licenses for processing plants in Malaysia, and has rejected the acquisition proposal of Australian west farmers, benefiting from the increase in NdPr prices in the United StatesS. -China trade war
\"Japan is continuing to strive for the long term
\"By diversifying the supply sources, developing alternatives and strengthening the recycling process, the long-term supply of rare earths used in automotive and consumer electronics products,\" Japanese officials said . \".
He declined to be named because he had no right to talk to the media.
Lynas\'s share price rose 64% this year, or 2, as rare earth prices soared.
7% after the extension of the loan was announced, some gains were abandoned and transactions increased by 1%.
Andrew White, an analyst at broker Curran & Co, said investors\' expectations for the loan agreement were largely consistent.
\"The reduction in interest payments will be huge.
But one of the things investors may think about is that capital spending has not yet arrived . \" Said White.
The company says it wants to be able
Fund A $0. 5 billion ($350 million)
By 2025, it will need to increase the annual production of NdPr from 10,500 tons last year to 5,443 tons per year. ($1 = 1.
$4302)(
Sonali Paul of Melbourne and Yuka Obayashi of Tokyo report;
Supplementary reports on Nainan Kurian records and brief records in Bangalore;
Richard Pullin editor)
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