Lynas Corporation (ASX: LYC) shares jumped an impressive 19.1% at close today after the company received approval for a temporary operating licence for its Lynas Advanced Materials Plant in Malaysia.
The advanced materials plant is on the verge of being completed and will be ready to receive the first feed of concentrate from Lynas’ Mt Weld rare earths project in Western Australia in the first quarter of 2012.
Granted by the Atomic Energy Licensing Board, the temporary operating licence will be valid for two years. If Lynas complies with the requirements of the licence, a permanent operating licence may be issued within the two years.
Requirements for the temporary operating licence include:
- Submission and approval of the plans for and location of a permanent disposal facility within 10 months of issuing the licence;
- Submission of all details of the permanent disposal facility; and
- Payment of US$50 million in instalments to the Malaysian Government as a financial guarantee.
The Licensing Board reserves the right to appoint an independent consultant to evaluate compliance with the standards and regulations that have been set, with the cost to be borne by Lynas.
Mount Weld Resource upgrade
Last month, Lynas announced an upgrade in the JORC Resource at Mount Weld to 23.9 million tonnes at an average grade of 7.9% rare earth oxides, for a total of 1.9 million tonnes of rare earth oxides.