Rare earths miner Lynas confident of Japanese backing

Melbourne

AUSTRALIAN rare earths miner Lynas Corp has warned that it is struggling to repay its debt but is confident its Japanese backers will keep the company afloat after granting it an extension of up to 15 months on some repayments.

Lynas, one of only two rare earths producers outside China, has struggled to manage its debt load amid delays in getting its Malaysian plant up to full tilt, forcing it to raise A$83 million (S$88 million) through a share sale and to renegotiate repayments with Japan Oil, Gas and Metals National Corp (Jogmec) and Sojitz Corp over the past six months.