KUANTAN, Malaysia (CU)_As Malaysia continues to battle the third wave of COVID-19, are-earths mining company Lynas Corporation, headquartered in Kuantan, has been facing many challenges in protecting its workers and operations from the global health crisis. Restrictions imposed by the authorities specify that the company can have only 40 per cent of its total workforce on site at any given time, which means the Kuantan processing facilities have been operating at just 75 per cent of its capacity.
Despite these challenges the company posted a record 69 per cent increase in revenue in the second quarter of this year. According to recent data, Lynas’ sales revenue reached $185.9 million in the June quarter, a noteworthy escalation from the previous quarter, when this figure was at $110 million.
The mining giant reported these results amid strong demand for rare earths, as demand from the automotive and the fluid catalytic cracking sectors have returned to pre-pandemic levels.
“The achievements of our Malaysian team have been absolutely outstanding over the full duration of the pandemic and in the past quarter in particular,” Lynas said, as its share price escalated by 10.6 per cent to $7.11 on Monday (26 July).
In the second quarter of this year, the mining giant produced 3778 tonnes of rare earths oxide, of which 1393 tonnes was neodymium and praseodymium (NdPr). According to Lynas, although NdPr prices saw a decline in June, after big increases at the start of 2021, however, prices have strengthened again this month. In the June quarter, the average domestic price for NdPr in China stood at $US69.90 a kilogram.
In terms of concerns related to COVID-19, the company ensures that any person stepping foot on-site is tested, in order to prevent any workplace transmission. In the case of workers who had been exposed to the virus outside of the workplace are continued to be paid while they quarantine for a required timeframe.
