Australian miner Lynas Corp. (ASX: LYC) plans to implement a price schedule for its rare earths on July 1, reports The Australian.
The company said recent spot prices for rare earths of $16 to $20 per kilogram are 25% below the price that producers need for sustainable operations.
Prices had been $100 per kilogram less than three years ago.
Lynas said it would try to convince customers signing long-term contracts would guarantee supply and minimum prices would grow the market potential.
The firm also said it would limit production to 11,000 tonnes per year at its Mt. Weld mine — the world’s richest deposit of rare earth — due to low demand.
Image courtesy Lynas Corp.