Lynas shares up as rare earth concentrate arrives for processing

Shares in Lynas Corporation rose after the company announced that about 100 containers of rare earths concentrate had arrived for processing at its new Malaysian plant.

Lynas shares were up 5.5 cents, or 8.73 per cent, to 68.5 cents this morning.

"Lynas expects that first feed to kiln and commencement of operations at the LAMP will occur over the coming days," the company said in a statement.

The West reported that there is nothing preventing the company from beginning operations at its plant despite a second round of legal proceedings against Lynas was revealed last week.

Legal action last week launched by the Save Malaysia, Stop Lynas group aims to stop the company securing a temporary operating licence for the new facility.

"The recent legal proceedings in the Kuantan High Court have not detracted from the ongoing operational preparation of the LAMP for production," Lynas said last week.

"Lynas is committed to its objective of successfully transitioning to a rare earths producer and trusted supplier, with first feed to kiln expected by calendar year end, followed by a ramp-up period of 3-4 months until first commercial sale of REO product and subsequent cash generation."

At the time the company said the legal action appeared to be the same as one that was dismissed by a Malaysian court earlier this month.

The Save Malaysia, Stop Lynas group is worried Lynas' plant will emit radioactive pollution, threatening both human health and the environment.

This news comes after Australian Mining reported the troubled rare earths miner has contended with licencing issues on a number of occasions this year.

In September Lynas Corporation beat analyst predictions and won a temporary operating licence for its processing plant in Malaysia. However, in October the Malaysian High Court extended the suspension of Lynas' temporary operating licence until early November.

Protests also took place outside the company’s head office this week in Sydney amid concerns from the Greens that radio active waste from the plant would be shipped back to Australia.

Lynas has applied to the Australian Radiation Protection and Nuclear Safety Agency (ARPANSA) for a permit to send the by-product back.

Image: SMH

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.