PETALING JAYA: Shares in Lynas Rare Earths Ltd rallied in the Australian market after Malaysia reversed an earlier ruling that had threatened the future of one of the few rare earths plants outside China.
The Australian firm will be allowed to continue importing and processing of key raw materials for its operations in Malaysia until March 2026, science, technology and innovation minister Chang Lih Kang said in a statement yesterday.
Lynas had challenged an earlier ruling that would have halted the so-called “cracking and leaching” plant at the start of 2024.
Lynas shares rose as much as 15% in Sydney, the most since February 2021.
The rare earths refinery that Lynas runs in Malaysia is the largest outside China, but has been dogged by concerns over radioactive waste and community opposition.
The mooted ban threatened to constrain supply of materials that are critical in electric vehicles, wind turbines, and high-tech military equipment.
“This decision provides a strong foundation for further development of the Malaysian rare earths industry,” Lynas CEO Amanda Lacaze said in a statement yesterday.
The cracking and leaching facility processes lanthanum oxide shipped from the company’s Mt Weld mine in Western Australia.
While putting up legal challenges to Malaysia’s proposed ban, Lynas had prepared to build that unit in Australia instead.
The updated operating licence will be subject to some conditions. Lynas must ensure the radioactive content of residues coming from the plant is below a set threshold, Chang said.
And the firm must also invest 1% of its gross revenues on research in Malaysia into removing radioactive material from residues.
The revised operating licence means the plant “will be in line with legal regulations, protect the people’s interests,” said Chang. The move will attract billions of ringgit in investments in the local rare earths industry, he added. - FMT
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