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Malaysian uncertainties complicate Aussie miner Lynas' growth plans
savemalaysia
Publish date: Fri, 07 Dec 2018, 11:05 AM
KUALA LUMPUR: Uncertainties surrounding Australian rare earths miner Lynas Corporation Ltd's future in Malaysia have hampered efforts to plan expansion, its chief executive said.
Amanda Lacaze said Lynas has been weighing options to grow its business, which would likely mean expanding beyond its current processing facility in Malaysia.
Lynas' next stage of growth will require additional investments beyond merely squeezing more capacity out of its existing asset, she told Reuters on Thursday.
She did not indicate any investment amount or new markets under consideration.
Amanda Lacaze said Lynas has been weighing options to grow its business, which would likely mean expanding beyond its current processing facility in Malaysia.
She did not indicate any investment amount or new markets under consideration.
Its $800 million plant on the east coast of peninsular Malaysia began operations in 2012 after long delays caused by legal challenges and environmental disputes.
These challenges were in focus this week when local politicians raised concern over the potential impact of Lynas' low level radioactive residues on the surrounding community and environment.
On Tuesday, Malaysia's Energy and Environment Ministry said the miner must comply with new conditions regarding waste management, ahead of the expiry of two licences next year, including the export of its low level radioactive residue, a ruling that caught the miner by surprise.
Lynas had expected that an environmental audit of its Malaysian plant released this week would go before parliamentary review before any ministry decisions were made, Lacaze said.
"What we got is a proper constituted review committee (that)developed carefully considered and proper recommendations, and they have just been put aside. I think this is a very difficult environment politically," she said.
The announcement by Malaysia's environmental ministry sent Lynas's shares tumbling by more than a quarter to a six week low on Wednesday, when Lynas responded in a statement that it would now consider its legal options.
"Our expectations were (when) we got the report from the review committee and we would know exactly what we needed to do and we would map that out. Now we don't."
However, Lacaze said the company's growth plan was not dependent on the issues it faces in Malaysia, but time spent dealing with the issues had put those plans on the backburner.
"If we had not been doing that, we might be further down the path and thinking about growth options," she said.
Lynas' plant has been running at full capacity since 2016. It has invested more than 35 million ringgit ($8.4 million) for enhancements made over the last year, and the plant is now able to operate beyond its original capacity.
"We are now able to operate our asset at around 140 percent of the original design, and it comes from improving the efficiencies, optimising the design and making sure our recoveries are better," Lacaze said.
The company has been looking into ways to reduce its radioactive waste as well, a move the government audit recommended.
"We have some plans on that but that takes capital investment which is difficult for us to allocate when we have the sort of uncertainty we have had here in Malaysia," Lacaze said. - Reuter
https://www.thestar.com.my/business/business-news/2018/12/07/malaysian-uncertainties-complicate-aussie-miner-lynas-growth-plans/
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Discussions
Be the first to like this. Showing 16 of 16 comments
A simple request to export all its waste back to Australia can cause so much problem to the management, surely they are hiding something so hideous that it is impossible to comply with this simple request.
2018-12-07 13:24
i tot malaysia wanna invest in electric cars n renewable energy? buy rare earth from china is it...got own plant prodduce rare earth dun wan..wanna buy from china? who china producing rare earth suplying whole world for renewaable energy...producing electric car use rare earth..i tot national car buidling electric car also use rare earth..contradicting
2018-12-07 13:36
who say australia government oppose building rare earth plant.....australia also got other rare earth plant...whole china also lots of rare earth plant...y so special like building nucluer plant...
2018-12-07 13:38
u think all those residue cannot be found in malaysia soil....those mining gold or tin or other mining activities contain all those residue...lucky no one picks on them...there are so many indutial plant out there producing toxic n radioactive materials but public dunno..
2018-12-07 13:41
they shld not hav plan the plant in malaysia..stupid move they shld hav stick to their original plan in australia...if china buy over them n fund them..i bet they will move bak to australia to build their plant...the only problem for them is they are out of fund to move their operation bak..
2018-12-07 13:43
Australia got other rare earth plant? Have you been following the news ah? Lynas is the only rare earth plant outside of China, understand? China's rare earth plants are located deep inland in the north, near baotou/mongolia area, the whole area is horribly polluted. And don't think Lynas didn't think about doing it in Australia. They did, and that was when Lynas was called Ashton. Let me tell you the environmental conditions to do it in Australia is much stricter. Here's proof:
http://www.nkkhoo.com/2012/03/26/lets-de-politicise-the-lynas-issue-by-stop-lynas-coalition-and-its-reply-by-dr-looi-in-the-sunday-daily/
2018-12-07 13:58
Of course there are instances of pollution in Malaysia. But then, Malaysia reaps the benefit of the sale of products through taxes. In contrast, Lynas pays no tax. All products are exported. And most of Lynas shareholders are foreigners. The real benefit of Lynas is just the 600 jobs Lynas generated. Seriously, that's as dumb a deal as it gets, compliments of the corrupt BN gomen. Do you think diluting and spreading their radioactive waste throughout Malaysia, which is what Lynas is proposing, is an acceptable exchange for 30 millions Malaysias for 600 jobs in Gebeng?
2018-12-07 14:03
i hav to say theres rare earth plant in australia..they are now planning to contruct one..the past few hav failed due to low rare earth earth price n too costly to build...only lynas succeeded becoz of low cost...
2018-12-07 14:23
i hav to say building a rare earth plant in malaysia is really not a sound decision...if the rare earth price is as high as it was when they design the pplant..there will be many raare earth plant in australia...but due to china pressing down of price..no0 one can succeed outside china...
2018-12-07 14:25
no one ever wonder why theres no plant outside china except lynas ..its not becoz of its radioactive waste..its becoz of cost...no profit to make..its control by china...rare earth is the strategic resource of china...china dun wan other country to make rare earth...lynas is funded by japanese to counter china claim on rare earth..if not it will gone bankrupt long ago..
2018-12-07 14:34
And... low cost comes from poor environmental standards, Lynas can just let the waste pile up for 7 years with full agreement from the previous government. If they need to spend money to clean up the waste you think they can still be so profitable meh? We are cheap, that's why.
2018-12-07 14:35
there are rare earth all over the world..even in malaysia soil there is rare earth...jus concentration...when they mine gold ..there is also small element of it..but why no one does it except china...becoz china can do it vbery cheaply..they dun care about pollution thats why no one can beat them...if china producce rare earth so stringently like lynas...the price of rare earth will shoot up more than 100 x already...lol
2018-12-07 14:37
so u must thanks china for making that electric car battery so cheaply..all the renewable energy becum viable...the iphone u use n so many product can be produced...all the world becomes greener becoz china takes the massive polution ...thank u china for making the world a greater place...
2018-12-07 14:39
Posted by QQmoon > Dec 7, 2018 01:24 PM | Report Abuse
A simple request to export all its waste back to Australia can cause so much problem to the management, surely they are hiding something so hideous that it is impossible to comply with this simple request.
That is right.
2018-12-07 15:03
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why dont Lynas just shut down Kuantan plant? Obviously Lynas is not wanted here anymore
2018-12-07 11:57