Lynas responds to Malaysian Prime Minister's comments

Company News

by Anna Napoli

Rare earths miner Lynas (ASX:LYC) has responded to comments by Malaysian Prime Minister Mahathir Mohamad on Friday about the continuation of Lynas' Malaysian operations.

Lynas  says it is looking to mitigate regulatory risk in Malaysia and is seeking clarification from the Malaysian government regarding the comments and will update the market on any developments.

On Friday evening the Malaysian Prime Minister told local media that companies interested in acquiring Lynas have agreed to extract radioactive waste before importing it to the Lynas processing plant in Malaysia and he indicated this additional measure would be required if Lynas wants its licence renewed in September.

It comes after the Malaysian government signaled in December last year harsh new operating conditions would be attached to its license, including that it remove radioactive residue produced at its processing plant.

Lynas is currently the subject of a takeover attempt by conglomerate Wesfarmers at a price of $2.25 per share. But the company said in a statement last month that it will not engage with Wesfarmers on the terms outlined in its indicative proposal.

Shares in Lynas (ASX:LYC) closed 0.47 per cent lower at $2.11 on Friday.


Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.