Lynas shares plunge following Malaysian annoucement

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Lynas Corporation’s share price plunged 16 per cent in ten minutes yesterday after the Malaysian Government said it had not granted the company a licence to import its ore.

The Government announcement spooked investors after it explicitly stated Lynas “had not been given any permission to import ores into the country”.

“Lynas was neither issued [a] … licence nor does it qualify yet for a permit to import rare earth ores into Malaysia,” the Government said.

But Lynas said the statement was made in response to earlier incorrect claims the company would be shipping ore to Malaysia by the end of October.

Earlier this week Lynas slammed the claims as “factually wrong”.

Its chairman Nicholas Curtis said they were part of an attempt to wrongly mislead the public over its operations.

“They create unnecessary fear in the local community for political purposes,” he said.

In clarifying the confusion, Lynas said in a statement it had not yet qualified for a permit because the Government was still assessing the company.

“As far as Lynas is aware, no decision has been made as yet by the Malaysian authorities concerning the pre-operating license and the importation of rare earths ores into Malaysia,” it said.

“No decision is expected to be made for some weeks.”

Despite the clarification the mix-up wiped almost ten per cent off the company’s price by close of trading yesterday.

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