Blow to Lynas’ Malaysian rare earths processing hopes

By Peter Roberts

Australian critical minerals producer Lynas Rare Earths has suffered a major blow with the renewal of the operating licence of its Malaysian metals processing plant – the biggest in the world outside China – in such a way that dooms part of the processing at the site to closure after July 1.

Malaysia’s Atomic Energy Licensing Board has renewed the company’s operating licence for three years from July 1, but has ignored Lynas’ pleas to vary the conditions of the licence which prohibit processing of lanthanide concentrate after that date.

The renewal is a win for conservationists in Malaysia who have been waging a battle to close the Malaysian plant which produces radioactive by product, campaigning through websites with names such as Malaysiaknowsthetruth and freeMalaysia.

Lynas mines rare earths at Mt Weld in Western Australia, is building a semi-processing facility at Kalgoorlie, and sited its metals plant production needed for permanent magnets used in electric vehicles, electric motors, computer drives, medical devices and defence equipment in Malaysia.

The wisdom of that choice – criticised as a risky choice by US Senators led by former Presidential candidate Ted Cruz, is now revealed as lacking.

The company’s expansion plans, and even its ability to maintain production must now be in question. However the company did not touch on that issue in an update to investors.

Lynas said: “Lynas applied to the Malaysian regulator for the removal of these conditions as they represent a significant variation from the conditions under which the previous four operating licences were issued and under which Lynas made the initial decision to invest in Malaysia.

“The conditions do not follow the recommendations of the 2018 Executive Review Committee report on Lynas Malaysia operations.

“If not removed by 1 July 2023, these conditions will require the closure of the cracking and leaching component of the Lynas Malaysia plant.”

Other processing ain Malaysia can continue after July.

CEO Amanda Lacaze said there were administrative and legal avenues open to the company for a review of the licence conditions.

Lacaze said: “We will now proceed with administrative and legal appeals to ensure that Lynas is treated fairly and equitable as a Foreign Direct Investor and a significant employer and contributor to the Malaysian economy.”

Further reading:
LYNAS’ RECORD QUARTER AND PROGRESSES KALGOORLIE PROCESSING FACILITY
LYNAS MALAYSIA CAUSES MORE PROBLEMS IN RARE EARTHS
LYNAS TO SPEED SPEND $500 MILLION TO BOOST PRODUCTION OF CRITICAL MINERALS

Picture: Lynas Rare Earths/Malaysia plant