© Reuters. FILE PHOTO: FILE PHOTO: A small toy figure and mineral imitation are seen in front of the Lynas Rare Earths logo in this illustration taken November 19, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
(Reuters) – Lynas Rare Earths Ltd on Tuesday posted a 43% fall in annual profit, as higher supply from top producer China and softer demand in key markets contributed to weaker pricing for its products.
China, which accounted for 70% of the world’s mine production of rare earths in 2022, further ramped up supply of rare earths this year. Also weighing on prices has been softer demand for neodymium-iron-boron (NdFeB) magnets from Japan.
Rare earths are used in products from lasers and military equipment to magnets found in electric vehicles, wind turbines, and consumer electronics such as iPhones.
For fiscal 2023, the world’s largest producer of rare earths outside China sold its products for an average price of A$46.2 per kilogram, down from A$60.3/kg a year ago.
The miner said it continues to engage with federal and state governments in Malaysia to support development of its rare earths facility.
The Malaysian facility currently faces the risk of being partly wound down after domestic regulators raised concerns about radiation levels from the process of cracking and leaching.
Lynas reported a net profit after tax of A$310.7 million ($199.81 million) for the year ended June 30, down from a record A$540.8 million a year ago.
($1 = 1.5550 Australian dollars)
