- Extension of operating license confirmed by Lynas Malaysia
- Cracking & Leaching moves to Western Australia
- Approval of PDF location for WLP backlogs is required within 6 months
- Long-term solution for NUF residues confirmed by the supervisory authority
Lynas Corporation Limited (ASX: LYC, OTC: LYSDY) is pleased to confirm that the Malaysian government has announced that its license to operate Lynas Malaysia is due to expire on 3. September 2019 is extended.
Following in-depth consultations with the Government of Malaysia and the regulators, we confirm the following:
1. The operating license of Lynas Malaysia is renewed.
The Malaysian government has announced that it will extend its operating license to Lynas Malaysia for a period of 6 months. Lynas Malaysia must meet certain conditions during this period, as summarized below.
2. Cracking & leaching relocated to Western Australia
As announced on May 21, 2019, Lynas Cracking & Leaching, the first phase of its operations in Malaysia, will be relocating to Western Australia as part of the Lynas 2025 growth plan. With the new license, Lynas has to complete the move within 4 years. Once the transition to Western Australia is complete, no more WLP residues will be produced in Malaysia.
3.Lynas is building a permanent deposit (PDF) for WLP residues
Lynas Malaysia is required to establish a permanent deposit (PDF) for WLP residues within 6 months to obtain site approval. Lynas Malaysia is confident that it will be able to meet this condition. Lynas will accelerate the planning and construction of the PDF. This is in line with the recommendation of the Parakatan Government's Audit Committee of Harapan in December 2018. Alternatively, Lynas may obtain the consent of another country to receive the material.
The Lynas Malaysia PDF Planning Framework and Site Selection Plan were previously approved by the Atomic Energy Licensing Board (AELB). In addition, the Government of the State of Pahang has granted written permission to set up a PDF in the state of Pahang.
Lynas previously deposited a total of $ 42,2 million in cash with AELB. Previously, Lynas had to spend 0,5% of gross annual sales on research and development. With the new license, Lynas is no longer obliged to spend this amount. However, this percentage must be presented to the Government of Malaysia as additional security until cracking & leaching starts operating in Australia. The relevant part of these security amounts is expected to be available for the PDF construction project. More information on costs and schedule will be made available as the project progresses.
4. Long-term solution of NUF residue confirmed
The Malaysian regulatory agency has confirmed the final approval of the long-term solution for NUF residues, originally on 14. February 2019 was announced.
Summary
Amanda Lacaze, CEO and Chief Executive Officer of Lynas Corporation, said: "Lynas Malaysia thanks the Malaysian Government for its decision based on the scientific recommendations of the Executive Review Committee. We reaffirm our commitment to our employees, of whom 97 is a Malaysian, and to further expanding Malaysia's position as a global center of excellence for rare earths.
"Lynas will continue to make a positive contribution to Malaysia's Malaysian economy and industrial 4.0 vision. We hope that today's decision will encourage other international companies to invest in downstream manufacturing in Malaysia. "Over the past seven years, we have shown that our business is safe and that we are an excellent foreign direct investor. We have created direct jobs through 1.000, of which 90% are qualified or semi-skilled, and we spend over 600 million RM in the local economy each year. "We are optimistic that this decision will end the politicization of Lynas last year. We look forward to continuing to be an active member of the communities and working closely with community members to ensure that they have timely and accurate information about our activities.
“Lynas will conduct an Investor & Analyst Briefing today.
More reports about Lynas
For all media inquiries, please contact Jennifer Parker or Lauren Stutchbury of Cannings Corporate Communications at + 61 2 8284 9990.
Andrew Arnold Company Secretary
News from Lynas Corp. 16.08.2019
Translation and German adaptation: Institute of rare earth metals
