Lynas to temporarily shut and upgrade Malaysia operations

Lynas Rare Earths reported a 21.8 per cent fall in first-quarter revenue, dragged down by lower production, and is preparing to shut down all bar one of its operations in Malaysia in the December quarter.

The world’s biggest supplier of rare earths outside of China said its mixed rare earth carbonate processing plant in Malaysia would remain open in the December quarter.

But its remaining operations in the South-East Asian country would close from mid-November to upgrade the facilities, allowing some workers to assist with Lynas’ new rare-earths processing plant in Kalgoorlie in Western Australia. The WA operations were established in response to regulatory demands imposed by Malaysia.

Minimal volumes of the rare earths, a key ingredient in wind turbines, electronics and military applications, would be processed in Malaysia during the shutdown.

Lynas is still holding out hope the Malaysian High Court will find in its favour – to allow the company to keep importing and processing rare earths that leave low-level radioactive residue. But as it stands, Malaysia’s ban is still set to come into force on January 1, 2024.