Phase 1 operations are scheduled to begin in the third quarter of 2011, with an initial capacity of 11,000 tonnes REO (Rare Earths Oxide) per annum.
Lynas Executive Chairman Nick Curtis said the agreement will enable Phase 2 construction to be committed in April 2011 and be online in 2012, if implemented, expanding the capacity of the LAMP to 22,000 tonnes REO per annum.
Lynas and Sojitz will use commercially reasonably endeavours to seek a funding package of up to $0.250bn to cover the cost of accelerating the expansion of the Lynas Rare Earths project to 22,000 tonnes per annum.
Lynas will supply a minimum of 8,500 tonnes ± 500 tonnes per annum to the Japanese market over the next ten years, upon securing this funding.
This agreement will result in more than 70% of the Lynas 22,000 tonne capacity now allocated.
