Join our daily newsletter At The Bell to receive exclusive market insights
- Lynas Rare Earths (LYC) Malaysian subsidiary’s operating licence is renewed for three years with no change to restrictive conditions
- The previous licence issued in March 2020 included conditions that prohibited the import or processing of lanthanide concentrate after July 1, 2023
- However, the company says these conditions vary from those under which its four operating licences prior to 2020 were issued, and is seeking a review
- If the conditions are not removed by July, Lynas will be required to close the cracking and leaching component of its Malaysian plant
- Lynas shares were up 3.95 per cent trading at $8.69 at 11:50 am AEDT
Lynas Rare Earths (LYC) Malaysian subsidiary’s operating licence has been renewed for three years, with no change to restrictive conditions.
The Department of Atomic Energy informed the company the Atomic Energy Licensing Board had approved its renewal application, which will be effective from March 3.
However, no changes will be made to the conditions applied to the previous licence issued back in March 2020, which include the prohibition to import or process lanthanide concentrate after July 1, 2023.
Lynas had applied to the Malaysian regulator to remove these conditions as the company claims they represent a “significant variation” from the conditions under which the previous four operating licences were issued, and importantly, under which Lynas made the decision to invest in Malaysia.
Lynas Rare Earths CEO and Managing Director Amanda Lacaze said the company was disappointed that the conditions remain after ten years of safe operation in Malaysia.
“This is our sixth operating licence and the four licences granted prior to 2020 did not include these conditions.
“While these conditions do not come into effect until July 1, 2023, they are inconsistent with the conditions upon which Lynas was invited to invest in Malaysia and the recommendations of four independent scientific reviews, each of which has found our Malaysian operations to be low risk and compliant with regulations,” Ms Lacaze said.
The company is seeking a review of the licence conditions. If not removed by July 1, Lynas will be required to close the cracking and leaching component of its Malaysian plant.
“We will now proceed with administrative and legal appeals to ensure that Lynas is treated fairly and equitably as a Foreign Direct Investor and a significant employer and contributor to the Malaysian economy,” Ms Lacaze added.
Other processes at the plant are not inhibited by the conditions and will continue with new feedstock sourced from Lynas’ rare processing facility in Kalgoorlie once operational.
Lynas shares were up 3.95 per cent trading at $8.69 at 10:50 am AEDT.
