Production costs to rise
LYNAS Corporation Ltd has increased the cost of production estimate for its Mount Weld rare earths mine being commissioned in Western Australia. The increase is to $ 10/ kg, from $ 7/ kg. The updated estimate arose from changes in exchange rates and movements in prices for key reagents. About 62 per cent of the cash costs would be generated at its advanced materials plant in Malaysia, with the balance in WA where the ore will initially be processed. The first feed of concentrate into the advanced materials plant remains on schedule for the third quarter of 2011.