20-10-2023 (SYDNEY) Lynas Rare Earths, an Australian mining company, announced today its plans to cease all operations in Malaysia, with the exception of a mixed rare earth carbonate processing plant, in the upcoming December quarter. This decision comes as a result of concerns raised by the Malaysian government regarding radiation levels associated with the cracking and leaching processes employed by Lynas over the past few years. Prime Minister Datuk Seri Anwar Ibrahim has even expressed the intention to ban exports of rare earth raw materials.
To address these concerns and secure the future of its operations in Malaysia, Lynas intends to upgrade its downstream facilities in Lynas Malaysia. The goal of this upgrade is to increase the production of neodymium-praseodymium (NdPr) to approximately 10,500 tonnes per year. This upgrade is crucial for the company’s operating license in Malaysia, as the current conditions prohibit the import and processing of rare earth raw materials starting from January 2024. Lynas hopes that an updated license will allow them to continue importing and processing Lanthanide concentrate.
During the shutdown period, which is set to begin in mid-November to facilitate the upgrade works, key personnel from Lynas’ Malaysian cracking and leaching plant will be deployed to assist with the start-up process of the company’s rare-earths processing facility in Kalgoorlie, Western Australia.
Lynas had previously received an extension for its operating license in Malaysia, allowing operations to continue until January 2024. However, the company is now seeking a stay to maintain normal operations in Malaysia while administrative and legal appeals are being heard. The hearing for this application is scheduled for November.
In addition to the operational changes, Lynas also reported a decline in its first-quarter sales revenue. The company’s sales revenue dropped by 21.8% to A$128.1 million, falling short of the consensus estimate of A$159 million, as reported by Barrenjoey. Lynas is currently the largest producer of rare earths outside of China.
The decision to shut down most of its operations in Malaysia and focus on upgrading its facilities reflects Lynas’ commitment to addressing the concerns raised by the Malaysian government and ensuring the continued success of its rare earth mining and processing operations.
