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MELBOURNE (Feb 27): Lynas Corp won a new license, subject to several conditions, to continue its rare earths refinery operations in Malaysia for three years, Bloomberg reported today.
Bloomberg said the decision ended uncertainty that’s clouded the future of the company operations near Kuantan, Pahang since late 2018, when Malaysia’s government ordered a new review of the operations as critics raised concerns over its public health and environmental impact.
The company, the largest rare earths producer outside of China, is required to construct new plants in Australia to process raw materials and in Malaysia to store waste.
Lynas currently mines rare earths-bearing ores in Australia before sending the material to its Malaysia plant.
Malaysia had set a July 2023 deadline for Lynas to stop importing raw materials that contain naturally occurring radioactive material.
Bloomberg reported that Lynas plans to build a new facility in Western Australia, which will partially process its raw material before it leaves the country.
Lynas also needs a new permanent disposal facility in Malaysia for some wastes and cooperate with the Malaysian Atomic Energy Licensing Board.
“This resolves a key uncertainty that’s been lingering since the Malaysian election result of May 2018,” Dylan Kelly, a Sydney-based analyst with Ord Minnett Ltd said in a note.
"Lynas should erase recent losses because the decision means “operations are unaffected by Malaysian politics for the foreseeable future,” he said.
Its shares rose as much as 11% in Sydney trading.
Click here to see industrial property for sale in Kuantan, Pahang.
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