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 Mining News
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.
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.
Ernst & Young report raises concerns about the company’s future due to Malaysia’s order to remove its radioactive waste by September.
Lynas $800 million plant on the east coast Malaysia began operations in 2012 after long delays caused by legal challenges and environmental disputes.
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.
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.
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.
'There follows in its wake signs of green shoots.'
Australian miner rockets 14% after saying first commercial rare earths available within weeks. Molycorp et al surge in sympathy.