KUALA LUMPUR (March 2): Lynas Rare Earths Ltd said on Monday its operating licence in Malaysia has been renewed by the government for 10 more years.
The Australian company, which runs the largest rare earth processing facility outside China, received a letter from the Malaysian Department of Atomic Energy for the renewal that begins on March 3, according to a statement.
“Lynas welcomes the longer licence term which provides greater investment certainty for Lynas and for our rare earths supply chain partners and customers,” said Lynas chief executive officer Amanda Lacaze.
The renewal comes as Lynas pledged to set up a new rare earth separation facility costing RM500 million in Malaysia amid strong demand. Rare earths have taken centre stage as China, which has long dominated the supply of the critical materials, tightened its control amid global trade tensions.
Lynas’ site in Malaysia is now the only non-Chinese commercial producer of the materials widely used in electric vehicles and advanced technology such as guided missiles. Malaysia, meanwhile, bans exports of raw rare earth and only allows value-added processed products to be shipped out.
Malaysia is estimated to hold around 16 million tonnes of rare earth deposits, a significant figure compared to the global annual consumption of about 200,000 tonnes.
Science, Technology and Innovation Minister Datuk Chang Lih Kang will hold a press conference on the licence renewal later on Monday.