Lynas Corporation (ASX: LYC, OTC: LYSDY) was granted a trading halt yesterday by the ASX pending an update.
This morning Lynas has advised that the Kuantan High Court has dismissed the application by the Save Malaysia Stop Lynas group for an interim stay in respect of the Temporary Operating Licence.
Lynas has become aware that the applicants have appealed to the Malaysian Court of Appeal on the same issue. It is possible that the applicants may also make further applications on the same basis. However, we note that:
- the judgment in the Kuantan High Court was very clear in its finding in favour of Lynas;
- there remains no injunction or stay preventing Lynas from carrying out its operations at the LAMP; and
- Lynas (or the Government of Malaysia) have, on several occasions in the past, successfully defended proceedings seeking injunctions, stay orders or similar orders including: the Kuantan High Court decisions in November 2012; a decision by the Malaysian Court of Appeal in September 2012; and a decision by the Kuala Lumpur High Court in April 2012.
The recent legal proceedings in the Kuantan High Court have not detracted from the ongoing operational preparation of the LAMP for production.
Lynas is committed to its objective of successfully transitioning to a rare earths producer and trusted supplier, with first feed to kiln expected by calendar year end, followed by a ramp-up period of 3-4 months until first commercial sale of REO product and subsequent cash generation.
Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.