Lynas share price: Miner considers processing in Australia

Lynas shares slide as much as 3.3% as the rare-earths miner says it sees value in processing near its Australian mine.

Rare earths miner Lynas Source: Bloomberg

Malaysia has ramped up pressure on Australian rare-earths miner Lynas, as it said on Monday it is considering ore processing close to its Australian mine.

It comes amid a takeover struggle, which has seen the company locked in a dispute with Malaysia over licence renewals. The South East Asian nation has told Lynas to remove years of accumulated waste as a condition of renewing its licence in September.

Lynas share price

Lynas shares fell as much as 3.3% to A$2.040 on Monday, dragging the shares to their lowest since March 27. Lynas stocks have risen 33.1% this year, as of last close.

The stocks have posted their biggest intraday percentage fall in two weeks, marking Lynas shares as among the top percentage losers on the benchmark S&P/ASX 200 index on Monday.

Analysts say the company’s licencing issues with Malaysia have been the main cause for the share drop.

Malaysian pressure

On Friday, Malaysian prime minister Mahathir Mohamad said that companies are interested in a takeover with Lynas, and they had vowed to remove low-level radioactivity before shipping raw materials to the country. However he did not specify which companies.

Mahathir said Lynas could keep operating in the country as long as raw materials coming to Malaysia were cleaned.

Mahathir’s comments come after last week Laynas rejected Australian conglomerate Westfarmer’s $1.1billion takeover bid.

Lynas said on Monday that it had been developing detailed plans that would assist the company to mitigate risk from any regulatory changes in Malaysia, for some months.

‘We see value in operating alternative cracking and leaching processing close to our resource,’ it said in a statement

Lynas produces a big majority of the world’s rare-earths--outside of China--in its rare earths mine in Western Australia. It ships the concentrated material to a plant in Malasia, where it stores thousands of tonnes of waste.

The Miner has said on Monday that it has the support of its Japan lenders and customers.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.