Albemarle requested an increase of 258,446 metric tons of Metallic Lithium Equivalent but the government says the information provided was not sufficient to justify the increase.
Africa's second-largest copper producer said late last month that it would introduce new mining duties and increase royalties to help bring down mounting debt.
Shares in Australian rare earths miner Lynas Corp jumped 12 percent on Friday after Malaysia's prime minister downplayed the roles of two Lynas critics.
