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| Lynas shares surge 22% on Malaysia rare earth licence | Lynas shares surge 22% on Malaysia rare earth licence |
| (40 minutes later) | |
| Shares of Australian miner Lynas have surged after Malaysian authorities granted it a licence to operate a rare earth refinery in the country. | Shares of Australian miner Lynas have surged after Malaysian authorities granted it a licence to operate a rare earth refinery in the country. |
| Lynas shares rose as much as 22% to A$1.625 on the Australian Securities Exchange. | Lynas shares rose as much as 22% to A$1.625 on the Australian Securities Exchange. |
| Once completed, the plant is expected to be one of the biggest sources of supply of rare earth elements outside China. | Once completed, the plant is expected to be one of the biggest sources of supply of rare earth elements outside China. |
| Rare earths are used in products such as hybrid cars and flat screen TVs. | Rare earths are used in products such as hybrid cars and flat screen TVs. |
| "It is a huge deal. This is their only processing plant and it has take some time to get it up and running," David Lennox a mining and resources analyst at Fat Prophets told the BBC. | |
| Conditional approval | |
| Lynas' plans to open the refining plant had resulted in various protests in Malaysia with critics saying that the process would cause environmental damage to the region. | |
| As a result the Malaysian authorities have granted the approval for an initial period of just two years and asked the miner to adhere to strict safety conditions. | |
| Lynas said that it will work towards allaying any fears about the impact of its operations. | |
| "Lynas recognises its responsibility to the community to operate the plant in a safe and sustainable manner," said Nicholas Curtis the company's executive chairman. | |
| Analysts said though the approval had been received well by the markets and investors, an element of uncertainty continues to surround the plant. | |
| "There were a lot of extra terms and conditions imposed on it compared to what was known when they planned and started construction on the plant," said Fat Prophets' Mr Lennox. | |
| "The serious bit is that there is a two year review period after which the government could actually impose further technical and production restrictions or in a worst case scenario even close it down." |