Lynas to halt Malaysian operations in December

Australian rare earths producer Lynas will halt operations at its Kuantan separation facility in Malaysia until it receives government approval to increase concentrate processing at the site.

The findings from a Malaysian government investigation into radioactive by-products at Kuantan was submitted to parliament yesterday, with a decision made on whether to permit the increase expected to follow soon.

The shutdown will cause praseodymium-neodymium (NdPr) production to be 400t less than previously anticipated for the fourth quarter, the company said. Fears arose in October about the future of the site in the event that the enquiry into radioactive by-products recommends the site be closed.

The Malaysian government's decision on the future of the site and the findings of the report remain unclear. Kuala Lumpur received a broad range of information on the Kuantan facility, including information submitted by Lynas.

The company maintains it has adhered to Malaysian laws and standards on handling harmful and radioactive materials. No date has been set for a final decision from the Malaysian authorities.