Lynas to shut down M'sian ops apart from mixed rare earth carbonate plant

KUANTAN: Lynas Rare Earths will shut down its Malaysian operations, aside from its mixed rare earth carbonate (MREC) processing plant, in its December-February financial quarter.

The Australian rare earth materials producer said all other operations at its plant in Gebeng here would be shut down starting from mid-November.

"During the shutdown, key Malaysian cracking and leaching personnel will be deployed to assist with the start-up process in Kalgoorlie, Australia.

ALSO READ: Rare-earths producer Lynas' Kalgoorlie facility faces labour shortages

"At Lynas Malaysia, we will implement an upgrade to downstream operations to increase neodymium-praseodymium (NdPr) production capacity to approximately 10,500 tonnes per annum (TPA).

"This is essential additional capacity in the event our Malaysian operating licence is updated to allow the continued import and processing of lanthanide concentrate from Jan 1, 2024," Lynas said in its latest quarterly report released on Friday (Oct 20).

Lynas said in the event this update does not occur, the capacity will still be required as its Kalgoorlie operation ramps up to its rated capacity of mixed rare earth carbonate (MREC) feedstock to produce approximately 9,000TPA of finished NdPr product.

ALSO READ: No amendments to Lynas licensing conditions

The upgrade work will be completed in the December quarter, it said.

Cracking and leaching operations at Lynas Malaysia were supposed to cease after July 1 but in May, Science, Technology and Innovation Minister Chang Lih Kang said a six-month extension was given after taking into consideration the global supply chain conditions for rare earth.

However, Lynas' appeals to drop four licence conditions related to cracking and leaching activities, the generation of water leach purification residues and the importation of lanthanide concentrates from Australia were rejected by the ministry.

ALSO READ: Lynas gets leave to challenge operating conditions

Lynas said in the event its Malaysian operating licence is updated to allow the continued import and processing of lanthanide concentrate, it will undertake further maintenance work on the cracking and leaching facility during the period in addition to the downstream upgrades.

Lynas also said it had received leave from the Kuala Lumpur High Court to proceed with its applications for judicial review of the Malaysian operating licence conditions.

"Lynas has now received leave from the High Court to proceed. An application for a stay to allow Lynas to operate on a normal basis while the administrative and legal appeals are heard and decided has been listed for hearing in November," it added.