Lynas Australia planning to close all Malaysia operations except for processing plant

SHAH ALAM - Lynas Rare Earths Ltd (Lynas) Australia is planning to close all its operations in Malaysia except for the rare earth carbonate processing plant by the end of this quarter.

According to a Reuters report, the decision comes amid a decline in the company's stock price and concerns from the Malaysian government over radiation levels.

Prime Minister Datuk Seri Anwar Ibrahim has warned against a policy of banning rare earth exports.

He said that Lynas' downstream operations in Malaysia can increase neodymium-praseodymium (NdPr) production to about 10,500 metric tonnes per year.

"This increase is crucial for operations because restrictions that prevent miners from importing and processing raw rare earth materials will be updated in January 2024.

"It allows importers to process continuously," he reportedly said today.

Lynas will begin upgrading its staff in Malaysia to assist in rare earth processing in Kalgoorlie, Australia, in mid-November this year before closing its operations.

The operating licence in Malaysia has been extended until January 2024, but suspension and administrative appeals, including legal matters, will be heard and decided in November.

Meanwhile, Marcustoday Senior Market analyst Henry Jennings said that the company would need more than the slightly disappointing production reports and maintenance issues.

He also noted that Lynas' first-quarter sales decreased 21.8 per cent to $128.1 million, missing the consensus estimate of $159 million.

"NdPr production for the quarter reached 1,526 metric tons of rare earth oxide (REO), compared to 1,045 REO tons the previous year," he said.