Column: Electric dreams turn into a nightmare for battery metals
A sector that was once racing to build new supply has been closing mines and deferring projects as low prices bite into the cost curve.
Australian rare earths miner Lynas Corp (ASX: LYC) has signed a memorandum of understanding with a Malaysian government agency to collaborate on several key projects, including attracting downstream industries and customers to the South East Asian country.
Under the agreement, Lynas, the world’s largest rare earths producer outside China, will also work with state agency MARA Corporation to commercialize certain waste residues from the company’s plant for use in agriculture.
Agreement represents a welcome sign of support from Malaysia to Lynas’ operations in the country, where the rare earths miners has faced intense pushback from green groups
The agreement represents a welcome sign of support from local authorities to Lynas’ operation in Malaysia, where the company has faced intense pushback from green groups. Most of the claims against the miner are linked to environmental concerns over low-level radioactive waste management and disposal at Lynas’ plant in Kuantan.
Late last year, Malaysia’s Atomic Energy Licensing Board (AELB) told Lynas it had to remove 450,000 tonnes of waste stockpiled at the local facility by Sept. 2., when the company’s license was up for renewal.
The government, however, extended in August the firm’s license, a move that sparked protests from activists and politicians even though it set tougher terms and gave it only six extra months.
The Sydney-based miner has already committed to building a first-stage processing plant in one of two preferred sites in Western Australia, where its Mt. Weld mine is located. Downstream processing activities, however, will remain in Malaysia.
The need for a decision, so far pointing at Kalgoorlie as the place to build the cracking and leaching plant, was accelerated after the government gave Lynas four years to have it ready or else see its license revoked.
Lynas is also sweating on a permit to increase imports of concentrate. Tat material is separated at its $800 million plant into elements that are vital for the making of permanent magnets used in electric vehicles, energy efficient consumer devices, as well as in the aerospace and defence industries.
The company recently flagged a possible scaling back in production into the year-end, pending the import license.
It also disclosed that it had been stockpiling output amid concerns that Beijing would stop exporting rare earths to the United States, which imports about 80% of its needs from China.
Comments
Muhammad Akmal Bin Mohamad Azlan
MoU SIGNED BETWEEN MARA CORPORATION
AND LYNAS MALAYSIA WITHOUT MARA
CONSENT
Kuala Lumpur, 4 Nov – MARA Corporation Sdn Bhd and Lynas Malaysia Sdn Bhd have entered into a Memorandum of Understanding (MoU) without the approval of the MARA Council.
This action of the Chairman of MARA Corporation in signing this MoU is not in line with the directive of the MARA Council whereby all new initiatives need the consideration and approval of the Council.
The MARA Council is currently in the process of reviewing MARA Corporation and its subsidiaries future direction. Pending the finalisation of this review, MARA Council has directed that any initiatives by MARA Corporation with any parties should receive approval from the Council and the Ministry of Rural Development.
-Muhammad Akmal Bin Mohamad Azlan
(Assistant Director of Corporate Communication Division of MARA )
03-2613 34854