Lynas Rare Earths (ASX:LYC) has advised of a variation by the Malaysian Minister of Science, Technology and Innovation (MOSTI) to the operating licence conditions of its wholly owned subsidiary, Lynas Malaysia.
The company reports Lynas Malaysia’s licence to import and process lanthanide concentrate is valid until 1 January 2024.
the licence variation allows the Lynas Malaysia cracking and leaching plant to continue operating until 1 January 2024
Additionally, Lynas reports the licence variation allows the Lynas Malaysia cracking and leaching plant to continue operating until 1 January 2024, along with the removal of the requirement for a shutdown at the Lynas Malaysia plant prior to 1 January 2024.
The company had applied to the MOSTI Minister for the removal of the conditions, which limited operations at the Malaysia facility, as they represented a ‘significant’ variation from the conditions under which Lynas made the initial decision to invest in Malaysia.
Lynas says the conditions do not follow the recommendations of the Malaysian Government’s 2018 Executive Review Committee report on Lynas Malaysia’s operations, the Atomic Energy Licencing Board’s own audits of the company’s operations, or any of the 3 prior independent expert scientific reviews of Lynas Malaysia’s operations.
The company states it has made ‘significant’ investments in its Malaysian facility and will seek review through these processes in respect of the conditions to ensure that the company is treated fairly and equitably as a Foreign Direct Investor.
Lynas Rare Earths is an ASX-listed company and producer of rare earth materials. The company is the world’s only ‘significant’ producer of separated rare earth materials outside of China.
Images: Lynas Rare Earths Ltd
