The Australian miner, the world's only major producer of rare earths outside China, said the A$500 million-plan ($346 million) aims to boost production, appease Malaysian regulators and fend off takeover attempts.
Lynas Corp Mining News
Output of rare earths oxides in the quarter ending March 31 was 5,444 tonnes, compared with 4,110 tonnes produced last year.
The rare earths miner said its board had concluded it would not engage with retail and industrial conglomerate Wesfarmers, stating its unsolicited takeover offer undervalues Lynas' intellectual property.
Lynas, one of the world’s main suppliers of rare earths outside China, said it was open to processing materials closer to its Australian mine if that meant it can renew its licence in the Southeast Asian country.
Comments foreshadow an intense takeover battle for the only proven producer of rare earth elements outside China.
The Wesfarmers bid highlights an imminent change in attitudes where it cannot be denied that rare earths will play a major role in the future.
Wesfarmers made a buyout offer of A$2.25 per Lynas share.
The offer represents a premium of nearly 45% on Lynas' closing price on Monday, but comes come with some significant conditions, including the rare dearth miner securing all necessary licences in Malaysia.
For least seven key rare earths - including praseodymium, used in magnets, and yttrium, used in ceramics - China was a net importer in 2018 for the first time in more than 30 years.
Ernst & Young report raises concerns about the company’s future due to Malaysia’s order to remove its radioactive waste by September.
The Australian rare earths miner said it was disappointed with Malaysia's decision to impose new conditions on its licence to operate in the country, adding it was considering all options, including legal action.
It needs to be removed by September 2, 2019, when Lynas' temporary storage licence expires.
The Australian rare earths miner has been granted an extension to a temporary permit to store residue at its Malaysian site.
As a general rule, the most successful man in life is the man who has the best information.
Deputy Minister Fuziah Salleh, a long-standing critic of Lynas’ plant, offered to step down from the committee reviewing the facility following criticism that she would not be impartial.
The newly-elected coalition government is said to be ready to launch a three-month evaluation of Lynas' rare earths processing plant, which may end with authorities denying the company’s operating license renewal in Sep. 2019.
Malaysian media reported the newly-elected coalition government will shortly begin a three month evaluation of the company's rare earths processing operations in the province of Kuantan.
Beijing to set up tracing system to determine and certify the origin of the materials.
As a result, all rare earths producers inside and outside China are facing extremely challenging conditions, say insiders.
Australian rare earths miner Lynas Corporation has managed to log positive free cashflow for the third straight quarter, despite difficult market conditions in which prices dropped to historic lows.
About 90% of China’s rare earth producers are currently operating at a loss as prices for the coveted elements continue to drop due to a global glut and illegal mining.
While analyst predict a rebound in hard-hit rare earth prices later this year, it is still unclear whether companies outside China, the world’s largest producer, will be able to challenge its dominance.
Beijing had been widely expected to eliminate tariffs and quotas on rare earth shipments after a World Trade Organization panel branded them discriminatory last year.
Firm struggled to increase output due to problems at Malaysian plant.
Opponents of the Australian rare earth miner's controversial Malaysian refinery are calling for a shutdown after an accident at the facility over the weekend killed an engineer.