The best performer on the S&P/ASX 200 index on Friday has been the Lynas Corporation Ltd (ASX: LYC) share price.
In afternoon trade the rare earths producer’s shares are up 7.5% to $2.60.
Why is the Lynas share price storming higher?
Investors have been buying Lynas’ shares following the release of a positive announcement this morning.
According to the announcement, Lynas has signed a memorandum of understanding (MOU) with the City of Kalgoorlie-Boulder for the review and due diligence of potential sites for its new Cracking & Leaching plant.
The release explains that the MOU provides a framework for support from the City of Kalgoorlie-Boulder in key areas relevant to ensuring the new Lynas Cracking & Leaching plant in Western Australia is successful. These areas include land availability, water, gas, electricity, access roads, other infrastructure and workforce management.
In addition to this, the agreement will see the City of Kalgoorlie-Boulder offer to actively assist Lynas in attracting a residential workforce for the plant’s operation and provide assistance for the initial staffing of the plant.
Lynas CEO and managing director, Amanda Lacaze, was very pleased with the development.
She said: “We are very pleased to announce this MOU with the City of Kalgoorlie-Boulder. Kalgoorlie has a rich mining history and continues to work with industry to develop the region and its communities. Lynas already employs graduates from the WA School of Mines which is located in Kalgoorlie and we look forward to continuing this partnership.”
“Access to infrastructure and a skilled workforce makes it an attractive investment destination and with this MOU we can further assess the suitability of potential sites in Kalgoorlie for our Cracking & Leaching plant. The local councils in both of our preferred locations have welcomed the opportunity to host our Western Australian Cracking & Leaching facility and we look forward to updating the market on further developments,” she added.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of Appen Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.