Lynas Rare Earths Malaysian Plant Faces New Setback
By Esther Tanquintic-Misa | November 14, 2012 3:33 PM EST
Another interim stay order that would prevent the operations of Australian miner Lynas Corp.'s rare earths facility in Malaysia has been filed by the environment hardliners against the company's temporary operating license.
No more than a week since the regional Kuantan High Court issued its positive decision favoring Lynas, a new petition for a stay order has been entertained by the court filed by the environmentalist group, the Save Malaysia Stop Lynas.
"Lynas became aware, initially through statements made on the internet by the Save Malaysia Stop Lynas group, that there is a proposed in-chambers application to the Kuantan High Court today regarding a further application for an interim stay in respect of the temporary operating licence," the miner said in a statement to the Australian Securities Exchange.
"Lynas believes that this appears to be a repeat of the application that was dismissed on 8 November 2012."
The miner's shares were immediately placed in halt following the announcement, and will remain as such until the conclusion of the hearing is known. The miner's shares last traded at 65.5 cents.
Last week on Nov. 8, the High Court said it will not stop Lynas from using its awarded TOL, effectively laying down the approval to start the plant at Kuantan.
The next day, Lynas announced it is rushing to gather at least $200 million to jumpstart the facility. Some $150 million had been successfully raised from institutional investors.
The Save Malaysia Stop Lynas vowed to oppose the project .
"We will appeal. We will fight to the end," coalition leader Tan Bun Tet had said.
To contact the editor, e-mail: