Advanced Materials Plant

Engineering and construction of the Lynas Advanced Materials Plant (LAMP) in Malaysia remains on time and within budget as at 30 June 2010; with the first feed to kiln at the LAMP on target for the third quarter of 2011.

Site activities at the Lynas Advanced Materials Plant (LAMP) in the past quarter ramped-up in preparation for construction works reaching full capacity during the third quarter. The key activities of the second quarter revolved around the mobilisation to site of the main contractors for the construction of the plant, with the focus on engineering and procurement activities being to provide these construction resources with the information that they require to complete their tasks.

ENGINEERING AND PROCUREMENT

Engineering progressed during the quarter and the LampsOn alliance team between UGL and Lynas reported engineering remained on schedule for the LAMP as at the end of the second quarter. With the major concrete drawing production well underway, attention is now transferring to the issue of steel design to shop detailers directly from the three dimensional engineering model prior to fabrication.

During the second quarter Lynas investigated bringing in an experienced operator for the construction and operation of the Water Treatment Plant in Malaysia.  Lynas has identified and selected Ranhill Water Technology to fulfil this role.

CONSTRUCTION

The major construction focus over the quarter has been the mobilisation of civil and concrete contractors to site and the commencement of civil works, including in-ground services and permanent site drainage, and the commencement of concreting activities, including the commissioning of wet and dry batch concrete plants.

In parallel with the mobilisation of contractors to site, the mobilisation of the construction management team has also progressed, with the relocation of key construction management personnel commencing and over 30 United Group Limited (UGL) personnel now mobilised to site.

Personnel for the Flue Gas Treatment Plant construction have been mobilised, with site establishment works having commenced.  Personnel have also been mobilised for the commencement of construction of the pre-engineered buildings.

The cutting of piles is approximately 30% complete, with blinding slabs poured in the first process buildings in preparation for the first structural slabs to be poured in early July.

MALAYSIA OPERATIONS

There are a subset of projects within the Lynas Ready For Start-Up programme (please note: Lynas has identified 144 projects as part of this programme) which are being carried out under the framework of the Technical Services Agreement with Rhodia. Rhodia are adding significant value and risk mitigation to operations of the Lynas Advanced Materials Plant (LAMP) through these projects, which include:

• Review of the operating manuals and standard operating procedures.
• Consultation in the Advanced Materials Plant commissioning plans.
• Training for 18 operations staff, with process training in Kuantan, as well as both classroom and field training at Rhodia’s Rare Earths plants.
• Planning of pre-loading of solvent extraction batteries, which shall enable a short commissioning and ramp-up schedule.
• Review the adequacy of laboratory equipment and sampling requirements.
• Review of the safety hazards.
• Establishment of a committee to identify and address critical areas during construction, commissioning, plant operations and plant reliability.
• Review of the appropriate manning levels for the Malaysian operations.

As part of the production process, the LAMP in Malaysia will produce some gypsum-based Synthetic Mineral Products. These products may be used in various product applications within Malaysia. Significant progress has been made in the commercialisation of these Synthetic Mineral Products, an important element of the company’s goal to contribute towards sustainable development.  Potential customers have been engaged and Lynas has worked with the University Malaysia in Pahang to produce samples for potential customers, and we will continue to work closely with customers to ensure the product specifications meet their requirements.

As part of our corporate social responsibility and in line with our company values, Lynas has sponsored the Ivory Tower Program in Malaysia, which assists local students from underprivileged backgrounds with gaining placement at local universities. The program is under the patronage of the Pahang Crown Prince and managed by the National University of Malaysia. 114 students have been selected from secondary schools, namely SMK Beserah, SMK Baging and SMK Pelabuhan, to participate in the program.


Concrete Batch Plants at the LAMP




Concrete pour for the Gas Treatment section