Rare earth miner Lynas Corp says it will build its new $500 million cracking and leaching plant in the historic goldmining town of Kalgoorlie.

Kalgoorlie was selected from two shortlisted locations in the Goldfields regions, the company said.

The plant will perform the first step of processing rare earth material from Lynas' Mt Weld mine about 300km northeast near Laverton, that had been shipped to Malaysia.

Lynas will also explore opportunities for upstream solvent extraction in Western Australia.

The plant is expected to directly employ more than 100 workers in the city of 30,000.

"We are excited to contribute to economic development in Kalgoorlie-Boulder," chief executive Amanda Lacaze said.

Lynas agreed to relocate its cracking and leaching operations to Western Australia by 2025 to renew its operating licence of its plant in Malaysia.

The cracking and leaching produces low-level radioactive waste which has been controversial in Malaysia, but Kalgoorlie officials say they have no concerns about it.


Image: Lynas Corporation Managing Director Amanda Lacaze, The West Australian. 


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