Lynas Rare Earths Faces Sulphuric Acid Supply Disruption Due to BHP Nickel Operations Suspension

Lynas Rare Earths has raised concerns about the potential disruption in the supply of sulphuric acid to its Kalgoorlie processing facility following BHP Group's announcement to suspend its Western Australia nickel operations starting October. BHP, the world's largest-listed miner, cited a decline in metal prices and an oversupply issue in the global market as reasons for the suspension.

On Friday, Lynas, the largest producer of rare earths outside China, stated that it has a contractual agreement with BHP Nickel West for the supply of sulphuric acid to its Kalgoorlie rare earth facility. This supply was to come from either the Kalgoorlie nickel smelter or other sources.

BHP's decision to halt mining at its Kalgoorlie nickel smelter will impact the sulphuric acid supply chain to Lynas' operations. However, Lynas mentioned that BHP has committed to making "reasonable efforts" to ensure the continued supply of imported acid to mitigate the disruption.