KUALA LUMPUR – Australian-based Lynas Rare Earths is planning to shut down its operations in Malaysia by the end of the year, except for a mixed rare earth carbonate processing plant.
According to its quarterly report, minimal raw material will be processed during the shutdown, which is expected to start mid-November.
It added that key personnel from the Malaysian cracking and leaching plant will be transferred to work on the start-up process of its rare earth processing facility in Kalgoorlie, Western Australia.
The company will also be heading to the high court for a hearing in November in a bid to overturn an order from the Malaysian government halting the importation and processing of lanthanide concentrate.
For now, Lynas Malaysia’s operating licence has been extended to January 2024 for its plant in Gebeng, Kuantan.
Despite that, Lynas would upgrade its downstream operations in Malaysia to increase production of neodymium-praseodymium (NdPr) to about 10,500 tonnes per annum.
This upgrade will be essential if its Malaysian plant is allowed to continue importing and processing of lanthanide concentrate next year.
Lynas, which is the world’s largest producer of rare earths outside China, saw a 21.8% drop in its first quarter sales revenue to US$81.04 million (approximately RM387 million) – missing its estimate of US$100.49 million.
In May, Malaysia gave Lynas a six-month extension to fulfil the conditions of its operating licence in the country.
Among the licence terms, Lynas was to conduct cracking and leeching activities in Australia, and that no radioactive waste was to be produced in Malaysia after July this year.
The company had repeatedly defended itself, claiming that its operations were safe and the implementation of such licensing conditions would result in a loss of jobs in Malaysia. – October 20, 2023