Lynas Malaysia is copping a few hits, it announced this morning.
The post Lynas (ASX:LYC) share price on watch following Malaysia update appeared first on The Motley Fool Australia. –
The Lynas Malaysia plant treats concentrate from Mt Weld in Western Australia. It also produces separated rare earth oxide products for sale to customers across Asia, Europe and North America.
What might move the Lynas share price on Monday?
Malaysia COVID-19 update
Lynas advised that its Malaysia plant continues to operate at a reduced rate. This is in line with its commitment to the health and safety of its employees. It is also to comply with local government standard operating procedures.
The company highlighted the vaccination of team members as an important step in protecting the health and safety of local workers. Participation in vaccination is part of the Malaysian Government’s recovery plan, on the path to relaxing certain lockdown policies.
Lynas advised that 98% of its staff in Malaysia have received their first vaccination dose. And 94% have received their second dose.
Today’s announcement provided no specific production guidance.
Lynas’ update for the quarter ending in June flagged that staff numbers on site were limited to 40% of the total workforce. Despite various COVID-19 and resource-related challenges, Lynas Malaysia was operating at approximately 75% of production rates.
New Malaysia facility approvals
Another potential catalyst for the Lynas share price is its update related to construction commencing on the Permanent Disposal Facility. This facility treats low-level radioactive waste in Malaysia.
Lynas advised that local regulators have extended the deadline for the satisfaction of the licence condition by 6 months to 2 March 2022. The company said that it continues to engage productively with the relevant government and regulatory authorities to progress approvals for the facility.
Anti-Lynas activists appeal
The prospect of radioactive waste has concerned many locals. This is following the government’s decision to renew the company’s rare earth plant licence.
On 28 July, the High Court of Malaya dismissed the judicial review proceedings commenced by the anti-Lynas activists. The activists are seeking a review of processes after the Government of Malaysia renewed Lynas Malaysia’s fourth operating licence in August 2019.
According to today’s announcement, Lynas received a notice of appeal by anti-Lynas activists.
Lynas said that it intends to defend the appeal.
Lynas share price snapshot
The Lynas share price has tumbled 18% in a week to a close of $6.33 on Friday.
Still, Lynas shares are up a pleasing 59% year to date and 155% over the last 12 months.
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Lynas (ASX:LYC) share price is one to watch after announcement
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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.