Lynas Corporation shutters Malaysian operation

Rare earths producer Lynas Corporation has shut down production at its Malaysian rare earths processing facility following coronavirus restrictions on business imposed by the national government.

The Perth company, which has struggled with on-again, off-again approvals to operate in Malaysia, said the shut down was currently scheduled to end on March 31.

Lynas told investors: “As a responsible business, Lynas has taken steps to ensure the health and safety of our people and our communities and we support the government’s actions to control the outbreak.

“Accordingly we have initiated a safe temporary shutdown of our plant into care and maintenance mode.”

The company has retained some work in progress inventory to allow a quick ramp-up of production.

It will also continue to pay its staff.

Lynas has endured a drawn out controversy over radioactive wastes from the plant.

The company’s cash balance on 31 December was $111.8 million, with a payment of $14 million to be made during the March quarter due to the permanent storage facility announced on 30 January.

Pictures: Lynas Corporation

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