Profit at rare earths miner Lynas drops on weak China demand

The world’s biggest miner of rare earths outside China posted a profit drop of more than 74 per cent for its first half on Monday amid weaker Chinese demand.

Australia-based Lynas Rare Earths reported after-tax profit of A$39.5mn (US$25.9mn) in the six months to December 31 2023, down from A$150.1mn the year before. Revenue came in at A$234.8mn, down from A$370mn.

The company said its “modest” growth in 2023 was “mainly due to subdued economic conditions in China”, affecting demand for its main products of neodymium and praseodymium, used in electric vehicles.

Amanda Lacaze, chief executive, said 2024 was a “transitional” year that “has established an excellent foundation for our future success”.