SYDNEY, Dec. 10 (Xinhua) -- The Western Australian state government have welcomed the decision by Lynas Corporation to build a rare earth processing facility in the rural township of Kalgoorlie.
As well as creating around 500 new jobs during the construction phase and a further 200 positions when the plant is up-and-running, the state's leader's are hoping the development will help kick start further growth in Western Australia's renewable battery supply chain.
A vital component in advanced manufacturing and the renewable energy sector, rare earth minerals also have vast applications for military technologies and the aerospace industry.
Currently producing 29,000 tons per year and worth around 355 million Australian dollars (243 million U.S. dollars) to the Western Australian economy, it is widely predicted the industry will see significant expansion over the next few years.
"The government's Future Battery Industry Strategy is focused on positioning Western Australia at the centre of the global battery supply chain, including supplying battery materials and critical minerals," Western Australian Minister for Mining and Petroleum Bill Johnston said on Tuesday.
"Downstream processing is a key plank of the strategy, which actively supports investment that enables raw minerals to be processed into more valuable products, creating jobs and diversifying the economy."
At the moment, minerals from the company's Mt Weld mine in Western Australia, one of the highest grade rare earth deposits in the world, are being shipped to Malaysia so that low-level radioactivity can extracted from the elements before they're used in production.
Quickly becoming a hot-button topic for the South East Asian nation, the Malaysian government recently ordered Lynas to discontinue the extraction process within four years, citing environmental concerns.
Seeing the result as a major win, State Premier Mark McGowan said, the decision by Lynas is fantastic for Kalgoorlie, the Goldfields region and Western Australia.
"This investment in infrastructure, the local workforce and research, is a key example of how the Western Australian government is working with industry to diversify the economy and deliver jobs of the future."
"Kalgoorlie has a long and rich history in mining innovation, so there is no better place for Lynas Corporation, and other multi-national businesses, to set up their processing operations."
