PERTH (miningweekly.com) – Shares in rare earths developer Lynas surged more than 19% on the ASX on Thursday after Malaysia's Atomic Energy Licensing Board (AELB) approved a temporary operating licence for its rare earths refinery in that country.

The operating licence for the Lynas Advanced Materials Plant (Lamp) would be valid for two years, and if the company complied with requirements, a permanent operating licence could be issued within this time.

“The AELB’s decisions comes after a thorough and extensive review by the Malaysian government regulatory authorities. Lynas respects the government’s process and the regulator’s decision,” said executive chairperson Nicholas Curtis.

Some residents and environmental groups have voiced concern over Lynas’ plans to build the rare earths refinery, saying it could cause environmental damage.

But Curtis said Lynas recognised its responsibility to the community to operate the plant in a safe and sustainable manner.

In announcing the approval of the temporary operating licence, the AELB included several conditions, including the need for details on a permanent disposal facility and a $50-million fee to the Malaysian government as a financial guarantee.

The AELB also reserved the right to appoint an independent consultant to evaluate compliance with the standards and regulations that have been set.

The refinery in Malaysia will process rare earths mined in Mount Weld, Australia.

Lynas recently confirmed a A$40-million cost blow-out on the Lamp project, owing to additional engineering completion requirements.

The company traded at A$1.58 a share on the ASX, up from A$1.33 apiece on Wednesday.

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