Lynas Clears Hurdles, Secures Malaysian Operating Permit

Lynas has got its hands on an operating permit in Malaysia, with the future of its refinery now assured up to 2023.

The world’s largest rare earths producer outside of China, Lynas (ASX:LYC,OTC Pink:LYSCF), has secured the medium-term future of its processing capacity in a deal with Malaysian authorities.

The Atomic Energy Licensing Board in Malaysia has given the Australian company a three year operating licence up until March 2023 in a development that clears away uncertainty for the producer.

The company’s future in Malaysia has been under a cloud for the past few years due to local opposition to the refinery and its operation on environmental and public health grounds.

Lynas announced on Thursday (February 27) that the permit has been secured. To get it, the company has agreed not to import raw materials containing naturally occurring radioactive material into Malaysia starting in July 2023.

To comply with this ban, Lynas must ensure that its cracking and leaching plant, currently under construction in Western Australia, is in operation before July 2023.

By removing radioactive materials, Lynas will be addressing the concerns that caused its previous woes.

The other requirements that the company expects to be able to satisfy include the development of a permanent disposal facility that the Atomic Energy Licensing Board will sign off on.

In order to ensure the company complies, Malaysia will be holding onto a financial deposit.

After the news, Lynas CEO Amanda Lacaze praised the Malaysian authorities for awarding the renewed permit. The demands that Lynas needs to meet were first set out back in August 2019.

“We thank the AELB for its decision to renew the operating licence for three years. This follows Lynas Malaysia’s satisfaction of the licence renewal conditions that were announced on 16 August 2019,” she said, before launching into a pitch on how valuable Lynas is to the Malaysian economy.

“Over the past eight years we have demonstrated that our operations are safe and that we are an excellent foreign direct investor. We have created over 1,000 direct jobs, 90 percent of which are skilled or semi-skilled, and we spend over 600 million RM in the local economy each year.”

Lynas moved quickly to select the processing site in Western Australia, announcing in December last year that it would be building the new plant in Kalgoorlie, near its Mt Weld mine.

The company has had plenty of motivation to ensure it can continue its refinery operations since it is one of the few rare earths companies with a supply chain completely independent from China.

Governments worldwide — such as Japan, a supporter of Lynas — have been casting about for alternative supplies of rare earths as the trade war between the US and China continues.

Don’t forget to follow us @INN_Australia for real-time updates!

Securities Disclosure: I, Scott Tibballs, hold no direct investment interest in any company mentioned in this article.

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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Green Technology Metals is a client of the Investing News Network. This article is not paid-for content.

The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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General Manager Matt Herbert described Ontario as an "undiscovered gem," and spoke about the company's work on its lithium projects in the province.

Green Technology Metals: Cashed Up and Pursuing Low-carbon Lithium in Ontario youtu.be

After making its ASX debut this past November, Green Technology Metals (ASX:GT1) has been hard at work in Ontario, Canada, where it holds three projects covering 35,000 hectares.

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Green Technology Metals has already seen support from members of the Ontario government, including recently re-elected Premier Doug Ford, and Greg Rickford, who is the province's minister of northern development, mines, natural resources and forestry, as well as its minister of indigenous affairs.

"Both are massive supporters of critical minerals," Herbert said. "Those things are important when you're at the permitting and approval stage, and that's exactly where we're at. We're able to leverage those relationships really well, and there's just no better place to be at the moment."

Watch the interview above for more from Herbert on Green Technology Metals and its plans for the next six months. You can also click here for our recap of PDAC, and here for our full PDAC playlist on YouTube.

Don't forget to follow us @INN_Australia for real-time updates!

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Green Technology Metals is a client of the Investing News Network. This article is not paid-for content.

The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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