Here's why the Lynas share price is up 7% today

The Lynas Corporation Ltd (ASX: LYC) share price has surged 7% on the back of news about its Malaysian operations. Here's a closer look at what's driving the gains.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Lynas Corporation Ltd (ASX: LYC) share price has surged by a massive 7.35% so far today and is currently trading at $2.26 per share (at the time of writing).

The rare earths producer's share price has been quite volatile over the past 12 months, but has still gone up an impressive 37% over that period. Lynas has also had a great run on the ASX over the past 5 years, increasing by more than 400% during that time.

Lynas responds to media speculation

Lynas' sharp increase today follows speculation on the Malaysiakini news website relating to the renewal of Lynas' Malaysian operating licence on 5 February. Initially, the company's share price dropped sharply following the announcement, however today Lynas responded to the speculation, advising that it hasn't received notification of such a renewal. The company has submitted its licence renewal documentation to the Malaysian Atomic Energy Licensing Board, however continues to await the regulator's decision.

Major Project Status awarded by Federal Government

Lynas' share price also appears to be gaining some momentum again following a major award given to the rare earth producer by the Australian government.

Back on 3 February, Lynas Corporation was awarded 'Major Project Status' by the Australian Government to establish its new rare earths processing plant in Kalgoorlie, Western Australia. 'Major Project Status' formally recognises the strategic significance of Lynas' project to the Australian economy. Lynas will also seek the support of government and commercial partners in local infrastructure development.

The new project will also serve as a foundation for the development of infrastructure in Kalgoorlie, including utilities and the production of chemicals used in minerals processing beyond the rare earths industry. This new project aligns with key government policies, including regional development, value-added processing and infrastructure development. The project also supports the Australian Government's Critical Minerals Strategy.

The Lynas Kalgoorlie plant will process rare earth concentrate from Lynas' Mt Weld mine, which is also located in Western Australia's Goldfields region. Lynas will also explore opportunities for additional processing in Kalgoorlie. During peak construction, the plant is expected to create up to 500 jobs and increase Lynas' workforce in the Goldfields to over 200 people. This project had also been awarded 'Lead Agency' status by the Western Australian government back in December.

Motley Fool contributor Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »