Lynas wins three-year Malaysia extension
Shares in rare earths producer Lynas jumped after Malaysia extended its operating licence for three more years.
Shares in rare earths producer Lynas Corporation jumped after the miner won a three-year extension to its Malaysian operating licence, ending uncertainty over the future of its refining operations.
Lynas shares closed up 9.5c, or 5 per cent, to $2.00 on the back of the announcement, which ends more than a year of speculation over the possible curtailment of its critical processing plant in Malaysia after the licence renewal became a political football.
Lynas says its new licence extends until 2023.
As previously flagged under temporary licence extensions, the new licence requires Lynas to build a new permanent disposal facility for waste products from the plant and move some of its early stage processing - the cracking and leaching of ore mined in Western Australia - out of the country.
Lynas has already begun the process of establishing a Kalgoorlie-based cracking and leaching plant, and said it expects to be able to fulfil the remaining conditions imposed by Malaysia’s Atomic Energy Licensing Board.
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