Lynas Corp, the Australian company building the world's largest rare earths refinery in Malaysia, rose the most in three weeks in Sydney after the Southeast Asian nation rejected a bid to cancel its license.

Lynas advanced as much as 15 percent to A$1.01, the biggest gain since May 28.

The shares were 10 percent higher at 97 cents at 11:13 a.m. local time, compared with a 1.6 percent gain for Australia's benchmark SandP/ASX 200 Index.

Malaysia's minister of innovation, science and technology rejected an appeal by local residents against Lynas's temporary operating permit on June 15, while imposing extra conditions on the plant.

The permit granted in February, subject to conditions, has been held up due to appeals by protesters to government and in court.

"Lynas has passed every review it has been subject to, and we now look forward to the issuance" of the license, Executive Chairman Nicholas Curtis said today in a statement.

Rare earths, 17 chemically similar elements, are used in Apple Inc's iPod music players, flat-screen televisions, magnets and hybrid cars.

Lynas's plant in the eastern state of Pahang would be capable of processing 22,000 metric tons a year should a second phase be completed, it said in November.

Lynas can satisfy the new conditions announced by the Malaysian government, the company said today.