WestStar lands work on Lynas facility

WestStar Industrial subsidiary Alltype Engineering has scored its first rotary kiln installation gig for Lynas Rare Earths while ushering in $3.5 million from investors to make a start on jobs in the pipeline.

WestStar values the contract at around $12 million and will see its construction contracting business Alltype build and install a rotary kiln at Lynas’ in-development rare earths processing facility in Kalgoorlie.

The work comes three weeks after Lynas’ facility was recommended for approval by the Environmental Protection Authority.

The $500 million plant is intended to treat rare earths from Lynas’ Mt Weld mine near Laverton, with the concentrate then railed to Fremantle Port for export.

Alltype Engineering managing director Kelvin Andrijich said his company had identified a niche market opportunity in the rotary kiln space.

“It is very pleasing to see that the subsequent business case and execution of this strategy 12 months later has resulted in securing our first rotary kiln erection contract as part of the landmark Lynas Rare Earths Processing Facility development in Kalgoorlie,” Mr Andrijich said in a statement.

Alltype says works at the facility will start immediately and are expected to be completed by 2022’s second quarter.

While the contract brings WestStar’s orderbook to around $222 million, the company has looked to sophisticated and institutional investors for capital to get projects up and running.

The company is set to raise $3.5 million in new funding via a placement offering up 152.2 million shares at 2.3 cents each, which come with an attaching unlisted option for every two shares subscribed for.

WestStar has also engaged Jindabyne Capital to provide corporate advisory services over the next two years and has issued 30 million unlisted options to the private company exercisable at 3 cents.

WestStar did not engage a lead manager for the placement.

WSI shares are up 4 per cent to trade at 2.6 cents while Lynas shares are down 0.45 per cent and trading at $7.76.