Refinery of land rare Malaysian Lynas Corp s may be delayed by a Government review that called for higher safety standards, further limiting the supply of rare earth as China without reducing exports.
Suspended Lynas shares trade today will meet the requirements, Chief Executive Officer Nicholas Curtis told reporters in Kuala Lumpur today, adding that the refinery can be commissioned later this year and in production by the second half of 2012. The Sydney-based company had planned to complete the plant in September, he stated on 20 June.
China, which represents more than 90 per cent of world production of rare earth elements used in flat-screen TVs and hybrid cars, cut export quotas push prices last year records. Once in operation, the Lynas project can approximately 39 per cent of the global supply outside of China.
"Project delays will be just make more valuable minerals and send prices higher," Peter Strachan, who heads the independent advisory firm StockAnalysis based in Perth, said by telephone from Perth. "You should Lynas would check all the boxes and completed all feasibility appropriate, environmental and regulatory work.".
Lynas needs to implement the recommendations for a licensed, which could take up to two years, Rebecca Fatima Sta Maria, Secretary General of the international trade and the Ministry of industry, the countries of Southeast Asia, told journalists. The review was motivated residents protested to mark their concern of radiation and contamination.
The probe has helped boost shares in rival REE of Arafura Resources Ltd. The company based in Perth, is planning to start production of metals to the Nolans in Australia project in 2013, closed 8.2% higher at 73 cents Australian late 4 pm trading in Sydney.
The Group of experts appointed by the International Atomic Energy Agency found no violation of the norms of radiation, the Government said today. Despite this, the Australian mining company must meet 11 conditions, on the issue, including monitoring of the environment and waste management in the long term, said Sta Maria.
"Until this is done, the status quo remains: no there is no import of materials first in the country, and none of the operational activities will be permitted on the site," said a joint statement of the International Trade and Industry Minister Mustapa Mohamed and Maximus Johnity Ongkili, Minister of science, technology and innovation. "."
The plant, which would be the refinery more of the world of rare, was ruined by design and dangerous for the environment construction problems, the New York Times reported today, citing notes with current internal and former engineers on the project.
"We don't know where the New York Times obtained their source and history of", said Curtis. "There is no question of engineering in the factory and we know that the plant is safe." We have and will meet the standards that have been described by the Malaysia and also IAEA. "For Lynas, safety and the community first and we will not waive that financial gain".
Mount Australia-Western welding operation, which will provide ore for the plant in Malaysia, can produce 22 000 tons of oxides of rare earth by 2014, when demand is expected to exceed the supply of 20 000 tonnes per year, according to Lynas. China may account for 36 per cent of the supply by 2015, down to a 65 per cent in 2013 forecast, he said.
Its shares fell 3.9% this year, compared to a decline of 2.9% of the Australian benchmark.
Prices for scarce land, 17 chemically similar elements which are also used in music iPod Apple Inc. (AAPL) drives, have more than doubled since the first quarter. China has still limited mining of rare, while exports of cutting to conserve resources and the protection of the environment.
Local residents and non-governmental organizations have lobbied to stop Lynas from operation of the plant due to concerns about radiation. Risks arising from the project outweigh the economic gains, Fuziah Salleh, a local member of Parliament, said on April 22.
Lynas wants to tap the growth of world demand for rare earth. The company chose State of Pahang the Malaysia as the location for its refinery due to an industrial site with ample supply of power and chemical products and the availability of skilled workers.
Events in the course of three months, including a March on the Parliament and the Australian Commission high Kuala Lumpur, took place after the March 11 earthquake and tsunami leak at the nuclear plant of Tokyo Electric Power Co. Fukushima Dai-Ichi to the Japan.
A follow-up examination should be carried out over the next two years, the IAEA said in his report.
To contact officials of this history of journalists: Manirajan Ramasamy in Kuala Lumpur to rmanirajan@bloomberg.net; Gan Yen Kuan in Kuala Lumpur to ykgan@bloomberg.net.
To contact the responsible editors of this story: Barry Porter in Kuala Lumpur to bporter10@bloomberg.net; Rebecca Keenan in Hong Kong to rkeenan5@bloomberg.net.
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