Malaysia renewed Australian miner Lynas Rare Earths' operating licence for 10 years on Monday to import raw materials containing natural radioactive material and process rare earths.
Shares of the world's largest producer of rare earths outside China closed 5.4% higher after rising as much as 7% earlier in the day to A$20.30, their highest since October 21, 2025. The broader ASX 200 benchmark ended largely flat.
Malaysia had raised concerns a few years ago about radiation levels from the cracking and leaching operations during raw material processing. It, however, amended the Lynas licence in 2023 to allow the Australian firm to operate until March 2026.
Under the terms of the latest licence renewal effective from Tuesday, Lynas will no longer be required to build a disposal facility to store radioactive residue from water leach purification from 2031, Malaysia's science ministry said.
After five years, Lynas must stop producing any radioactive waste and any residue produced before that must be neutralised through thorium extraction or other approved treatment methods, it said.
"What they produce before or within five years must be neutralised into waste that is no longer radioactive," minister Chang Lih Kang told a press conference.
Lynas will also be expected to contribute to efforts to develop Malaysia's domestic rare earths industry, with 1% of its annual gross sales to be used as research and development funds, the ministry said.
The miner has been investing in its Malaysia facility, spending about A$180 million ($127.91 million) to build a new separation facility amid rising demand for heavy rare earth oxides sourced outside China. - Reuters
