The Lynas Corporation Ltd (ASX: LYC) share price is down 18% on a Malaysian operations update.
Lynas is a ‘rare earth’ miner with two major operations in Western Australia and Malaysia. Its materials are used in products like high powered magnets, wind turbines, catalytic converters, oil cracking and hybrid motor vehicles.
The update:
Lynas acknowledged that it has seen the media speculation about a potential government review of its Malaysian operations.
The potential chairperson of the proposed review committee could be a person who is long time anti-Lynas campaigner. Lynas said: “If that appointment is confirmed, then that will raise concerns.”
But, the company could push for a review that is transparent, impartial, scientific and consistent with other recent initiatives of the new government.
Lynas pointed out that it has been through several previous reviews, implemented all recommendations and has been compliant with regulatory requirements for the six years of operations.
Management also pointed out that the company has invested over MYR 3 billion into plant & equipment and spends MYR 500 million per year, including employing over 600 people, 97% of which are Malaysian.
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