Lynas finally fires up Malaysian plant, ignites REE stocks
Australia's Lynas Corp (ASX:LYC) on Monday gave a lift to the rare earth sector after announcing that it has successfully commissioned the cracking and rare earth extraction units at its controversial plant in Malaysia.
"Lynas anticipates commercial rare earth products will be available in the next few weeks with ramp up of production to take place over the next three months," the company said in a statement.
Lynas rocketed 14% in Sydney, while US-based REE producer Molycorp (NYSE: MCP), was trading up 9.8% in heavy volumes Monday afternoon in New York, more than doubling in value from recent lows.
Speculators favourite Molycorp is one of the most volatile stocks on the NYSE with an eye-watering 52-week trading range of $5.75 to $35.79.
Great Western Minerals (TSX-V: GWG) which is constructing a rare earth separation plant in South Africa close to its Steenkampskraal project where the previously operating mine is being refurbished added more than 4%.
Juniors Rare Element Resources (TSX:RES) and Avalon Rare Metals (TSX:AVL) both gained more than 1%, while Quest Rare Minerals (TSX:QRM) and Frontier Rare Earths (TSX:FRO) shot up 5.5% and 4.1% respectively.
At full production Molycorp, Lynas and Great Western are expected to end China's grip on the REE market. China is currently responsible for more than 95% of the global supply of rare earths.