Business

Lynas receives timely boost from the US

The Lynas plant in Gebeng.

TheMole
Written by TheMole

KUALA LUMPUR — April 24, 2020: Lynas Corporation Ltd. has received a timely boost following a recent decision by the United States Department of Defense to approve first phase funding for the rare earths company’s plan to build a processing plant in Texas.

Timely because the Australian company’s plant in Gebeng just outside Kuantan is temporarily closed because of the movement control order imposed by the Malaysian government throughout the country.

Lynas has appealed to the Ministry of International Trade and Industry to allow it to resume operations since it is part of the supply chain for the medical services — one the crucial sectors allowed to operate during these times.

Rare earths production is dominated by China and the US wants to ensure that its domestic supply chain is not disrupted.

Lynas submitted its plan to the US in May last year to build the plant in a joint venture with Blue Line. The contract with the department involves the planning and design of a heavy rare earths plant .

In a statement to the ASX Lynas said the deal may lead to further contracts for commercial scale production and operations, although this is uncertain at the moment.

The company has a mine in Western Australia.

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