Lynas Corporation has signed a new long-term supply agreement with BASF for the supply and production of rare earths at the Lynas advanced materials plant (LAMP) in Malaysia.

Under the terms of the agreement, Lynas will supply rare earths from the phase one and phase two expansion of the LAMP.

Phase one will have a capacity of 11,000tpa of rare earth oxides and is scheduled for first feed of rare earths concentrate into the LAMP in the fourth quarter of 2011.

Lynas has scheduled phase two after 12 months of phase one, during which the LAMP capacity should double to 22,000tpa of rare earth oxides .