Lynas Corp’s operating licence in Malaysia will be renewed by the country’s government for six months following extensive consultation with regulators.
The licence renewal will take place before September 3 this year, with Lynas required to fulfil certain conditions upon the renewal.
Its conditions include relocating its cracking and leaching processes, the first stage of its Malaysia operations, to Western Australia as part of Lynas’ 2025 growth plan.
Under the new licence, Lynas is required to complete the relocation within four years. Once the transition is complete, water leach purification (WLP) residue will no longer be produced in Malaysia.
Lynas Malaysia is also required to obtain consent for the location of a permanent deposit facility (PDF) for WLP residue within six months.
The company said via a statement that it “is confident of satisfying this condition” and “will accelerate planning and construction of the PDF.”
Lynas chief executive officer Amanda Lacaze thanked the Malaysian Government for a decision that was based on the scientific recommendations of its executive review committee.
“We are optimistic that this decision will bring an end to the politicisation of Lynas over the past year,” she said.
“We look forward to continuing to be an active member of our communities and we will work closely with community members to ensure that they have up to date and accurate information about our operations.”
Lacaze also reaffirmed its commitment to its staff at the operations, 97 per cent of whom are Malaysian, as well as committing to further develop Malaysia’s position as a global rare earths “centre of excellence.”
“Lynas will continue to make a positive contribution to the Malaysian economy and to Malaysia’s Industry 4.0 vision,” she said.
“We hope today’s decision will encourage other international businesses to invest in downstream manufacturing in Malaysia.”