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Engineering, procurement and construction management and maintenance services for a Rare Earths plant in Malaysia for Lynas Corporation

A comprehensive engineering solution for the largest Rare Earths plant in Malaysia

Lynas Corporation
Project Duration
Commenced: 2010
Estimated Completion
Project Overview

Lynas Corporation (Lynas) is a specialist mining company, building the world’s only integrated supply  system of Rare Earths. It is an ASX 100 listed company with the strategy to create a reliable, fully integrated source of Rare Earths from mine through to market, and to become the benchmark for the security of supply and environmental standards in the global Rare Earths industry.

The foundation of this strategy is Mount Weld near Laverton in Western Australia, the richest known deposit of Rare Earths in the world, and a state-of-the-art Rare Earths processing plant, the Lynas Advanced Materials Plant near Kuantan in Pahang, Malaysia.

Rare Earths are used in the development, manufacture and miniaturisation of technology items such as iPods / MP3 players, flat panel displays, disk drives and other digital products, helping to create smaller, lighter and faster products. The increased global demand for such items is almost unparalleled.

UGL’s skills, experience and knowledge base within the mining sector, helped secure contracts with Lynas to provide engineering, procurement and construction management services for their Advanced Materials Plant in Malaysia.

The Challenge

After the development of its main mining site in Western Australia, Lynas secured capital to construct a Concentration Plant locally at Mount Weld and an Advanced Materials Plant in Malaysia to process concentrate through to final Rare Earths oxides.

Construction of the $230 million Rare Earths refinery on 250 acres of reclaimed tropical swampland in Malaysia would be the first processing plant in nearly three decades to be finished outside China to refine rare earth ores into manufacturing-grade materials.

The challenge for Lynas was to find the right Engineering Procurement and Construction Management (EPCM) organisation to deliver this large scale project.

The Solution

UGL was awarded the engineering, procurement and construction management contract for the Advanced Materials Plant in Malaysia, after undertaking a high level engineering review of the project.

Building on our extensive construction experience and engineering design capability, UGL utilised fully integrated 3D multi-disciplined engineering and materials management systems to deliver this greenfield project.

This award expanded UGL’s presence in South East Asia. In Malaysia specifically, turnaround, project control and EPCM opportunities have been targeted.

UGL’s strategy has always been to establish its capabilities in its home market and then take these skills into new international markets based on the right opportunities.

Key Outcomes and Benefits

This project is Australia’s largest investment in Malaysia, intended to produce $1.7 billion a year in rare earths, or nearly 1% of Malaysia’s entire economic output.

UGL brought its extensive construction experience and engineering design capability in South East Asia to this project to construct world class production facilities, designed to meet the strict environmental requirements
of both Australia and Malaysia.

From a single point of contact, UGL managed the entire project beginning with in-housing engineering, procurement and construction through to start up and commissioning.

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