【Ferro-alloys.com】: Rare earths producer Lynas Rare Earths has reported significant power supply disruptions at its new Kalgoorlie processing facility, warning that outage frequency in November has resulted in substantial lost production that will impact quarterly output.

The Kalgoorlie plant is connected to Western Power’s Eastern Goldfields load permissive scheme (ELPS), which Lynas joined in 2021. At the time, Western Power publicly stated that “ELPS customers are ensured access to cleaner power in lieu of costly, emissions-intensive diesel generators". Reliability levels indicated at the time were consistent with the operational requirements of the facility.

However, Lynas said on Tuesday that power disruptions had escalated sharply this year.

“During 2025, there has been a significant increase in power supply disruptions at the Kalgoorlie rare earths processing facility,” the company noted in a statement. “In November, outage frequency and duration have been at a level that has led to significant lost production of mixed rare earth carbonate (MREC).”

The knock-on effect will be felt at Lynas’ Malaysian plant, where finished rare-earth products are produced. Because the Malaysian kilns are undergoing scheduled major maintenance, the MREC shortfall cannot be offset by increased processing in Malaysia.

“Whilst the Kalgoorlie team is working hard to recover the lost production, it cannot reach the Malaysian facility in time to be processed to finished goods within the quarter,” the company said. “The shortfall in MREC feedstock cannot be mitigated by increased production in Malaysia as the Malaysian kilns are shut down for scheduled major maintenance.”

Lynas said it was working with the Western Australian government and Western Power to determine the cause of the outages and assess ways to improve supply reliability. However, it warned that solutions would not be implemented quickly enough to improve the current quarter’s production forecast.

“Whilst the power supply remains unpredictable, it is not possible to quantify the exact production shortfall,” the company stated. “However, Lynas estimates there may be a shortfall equivalent to one month’s production during this quarter.”

Despite the disruption, Lynas expects to meet its obligations to priority customers.

In parallel with discussions with authorities, the company has launched an urgent review of off-grid power options to stabilise supply.

“Given the option to implement a short term off-grid power generation solution, it is expected that lost production can be recovered within the financial year,” Lynas said. 

• [Editor:Alakay]