Frustrated mining giant Lynas Rare Earths has escalated ongoing power supply issues at its Kalgoorlie processing facility to the Western Australian Government, revealing significant production setbacks have placed the company approximately one month behind schedule.
Unsustainable Power Disruptions Hit Production
Lynas Rare Earths confirmed to investors on Tuesday, 25 November 2025 that its Kalgoorlie refinery has experienced what it describes as unsustainable power outages. The facility, which processes ore from the Mt Weld mine into rare earth carbonate, has been plagued by a rise in outage frequency and duration throughout November, compounding a significant increase in power failures witnessed throughout 2025.
This is particularly frustrating for the Gina Rinehart-backed miner, which had entered into an agreement with Western Power that was supposed to ensure cleaner and more reliable power, moving away from costly diesel generators.
Grid Strain in the Goldfields
The energy supply in the Goldfields region has become a critical issue, with blackouts becoming increasingly common. The region's overloaded electricity grid is struggling to bear the substantial demands of major mining and processing operations like the Lynas plant.
These persistent power disruptions have had a direct and severe impact on output. The company reported significant lost production of Mixed Rare Earth Carbonate (MREC) at the Kalgoorlie site. This material is crucial as it is subsequently shipped to Lynas's separation facility in Gebeng, Malaysia, where it is split into the heavy and light rare earths essential for electronic manufacturing.
Quarterly Targets at Risk
The lost production time means Lynas is now staring down a substantial production shortfall for the quarter. Although the company has not yet specified the exact quantum of the shortfall, it acknowledged the serious implications.
In an update to the Australian Securities Exchange, Lynas stated that while its Kalgoorlie team is working hard to recover the lost production, the material cannot reach the Malaysian facility in time to be processed into finished goods within the current quarter.
In response to the crisis, Lynas has applied pressure on the State Government to find a permanent fix. The miner confirmed it is working constructively with both the government and Western Power to identify the root cause of the recent outages and to improve power availability to its vital Kalgoorlie plant.
