Rare Earth Shares News Lynas Corporation (LYC)
4th Jul 2011
Lynas Corporation (ASX:LYC) is involved in the exploration and development of rare earth minerals.
LYC owns the richest deposit of Rare Earths in the world at Mt Weld (Western Australia), 35km south of Laverton in Western Australia.
Mt Weld is also the world’s largest deposit outside China, with supply due to begin in 3Q11.
Though Rare Earths demand dipped in 2009, prices are now recovering and current resources are struggling to maintain production.
LYC benefits from its strong ties to Rare Earths resources (whilst potential competitors face Rare Earths mineral scarcity) and as growth forecasts surpass new supply coming to the market.
Rare loss
LYC shares plunged on Friday after its Malaysia plant suffered a setback.
Malaysia’s government has put restrictions on the plant until the company complies with recommendations in a report commissioned by the International Atomic Energy Agency.
LYC came out with a statement denying any unusual construction difficulties and claiming its plant is being built to international standards.
A selloff by spooked investors saw the stock finish the session down over 11%.
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