Lynas Rare Earths Ltd.’s shares surged after Malaysian authorities granted a six-month extension to the Australia miner to get its rare earth plant in line with environmental requirements.
(Bloomberg) — Lynas Rare Earths Ltd.’s shares surged after Malaysian authorities granted a six-month extension to the Australia miner to get its rare earth plant in line with environmental requirements.
The deadline for the facility to be radiation-free has been extended to January 2024, according to Science, Technology and Innovation Minister Chang Lih Kang. He confirmed an earlier report by the Straits Times on the decision.
Lynas shares had their biggest one-day gain in more than two years on Monday, and closed 12% higher to A$7.37 ($5) in Sydney.
The Lynas rare earths refinery in Malaysia is the largest outside China, but has been dogged by environmental concerns and community opposition. The ban threatened to constrain supply of materials that are critical in electric vehicles, wind turbines, and high-tech military equipment.
The government issued a fresh three-year license to Lynas’s plant based in the state of Pahang in February, with one of the conditions requiring the need to move “cracking and leaching” of lanthanide concentrate to an area outside of Malaysia by July 1. Malaysian authorities say the business unit generates radioactive waste.
Lynas is building an alternative processing plant in Australia, but it was unlikely to be ready by the Malaysian ban’s original start date in July. That facility, in Kalgoorlie in Western Australia, would provide the more pollutive early stage processing, with a more refined product being sent to Malaysia for finishing.
READ: Lynas Eyes More Rare Earths Capacity If Malaysia Plant Shuts
The decision to delay the ban was relayed to Lynas on Friday after an appeal hearing in April, Chang said. His ministry will issue a statement on the issue on Monday, he told Bloomberg News.
Lynas acknowledged the delay in a statement on Monday, but said it would continue to seek options to challenge the ban.
–With assistance from James Fernyhough.
(Updates with closed share price in third paragraph)
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