Why Lynas Corp Is Struggling - The Great Rare Earth Shortage Is Truly Over

Rare Earth Deposits & Mining / Rare Earth Exploration, Mining, Processing, & Uses

Date posted: 08/03/14

Lynas Corporation, in Australia, is having a hard time of it as it ramps up its production of rare earth elements from the mine at Mount Weld and the processing plant in Malaysia. The share price has been bouncing around but the underlying cash flow numbers don not look good. How can this be, given that the company is (along with Molycorp) the solution to the Chinese monopolistic stranglehold over rare earth supplies for the globe. There is two possible explanations that we can put forward here, both of them economic. One is that China is manipulating that monopoly to Lynas detriment, the other is that this is just the free market outcome.