Fourth trading halt in a month for Lynas

Lynas Corporation entered another trading halt early this week following a statement from the Malaysian Government demanding the company export “all residue” from its Kuantan processing plant.

The move is the fourth trading halt in a month for Lynas, and was made after Malaysian ministers released a statement in response to what it claimed were “inaccurate media reports”.

In the statement the Government reinforced its position on the Lynas processing plant, and said the company’s temporary operating licence would be withdrawn if it did not export the waste from the plant.

“The Temporary Operating Licence granted to Lynas requires as a specific condition that the company removes all the residue generated by LAMP out of Malaysia,” it said.

“This includes all products made from the residue.

“The obligation imposed on Lynas in this matter is very clear.

According to Fairfax Media Lynas said there had been “inaccurate” reports in Chinese media that said the waste could not be exported because of international laws.

The company said it would convert the residue from its Malaysian plant into a safe building product called synthetic aggregate, and if was not wanted locally it would be exported.

“Lynas will ensure that all residue material that is the source of concern to the Malaysian public will be converted into co-products, and exported if the co-products are not approved for use in Malaysia,” it said.

“The co-products must be in a form acceptable for international markets and in accordance with all Malaysian regulations and international conventions.

Lynas also said the company’s licence remained valid and there was “no legal impediment” to it continuing development at the plant.

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