Lynas Rare Earths Ltd (ASX: LYC) shares are down 1% in afternoon trading on Monday.
Shares in the S&P/ASX 200 Index (ASX: XJO) rare earths miner closed on Friday trading for $8.29 per share and are currently trading for $8.21 apiece.
That's today's price action for you.
Now, what's this about Lynas' Malaysian operating licence?
Image source: Getty Images
Why might Malaysia reconsider the operating licence restrictions?
More than $11.5 million worth of Lynas shares traded hands last Tuesday after the ASX 200 miner updated the market on the operating licence for its 100% owned subsidiary, Lynas Malaysia.
Malaysia's Atomic Energy Licensing Board granted a three-year licence renewal, but with a catch.
The regulator said it was sticking to a clause applied to Lynas' renewed licence in March 2020. That clause prohibits the ASX 200 rare earths miner from importing and processing lanthanide concentrate after 1 July due to concerns over radioactive waste.
"No party has the right to continuously produce radioactive waste in our homeland," minister Chang Lih Kang said on Wednesday.
Lynas shares remained fairly resilient, despite the company saying the prohibition would lead to the closure of the cracking and leaching component at the Lynas Malaysia plant, the world's largest single rare earths processing facility.
After market close on Thursday, Lynas followed through with its promise to appeal the ruling.
Lynas said it is "seeking administrative review of the decision of the Atomic Energy Licencing Board in failing to consider Lynas' application for the removal of the licence conditions prohibiting the import and processing of lanthanide concentrate".
Yesterday, word emerged, via Twitter, that there might yet be grounds for negotiation.
"If someone is willing to ship the 'low risk radioactive waste' (as claimed) out of our country, the government can consider retaining C & L plant in Gebeng," Chang wrote in a tweet.
Stay tuned…
How have Lynas shares been tracking?
As you can see in the chart below, Lynas shares are up 5% so far in 2023.
Longer-term, the ASX 200 rare earths miner has seen its stock soar 319% over five years.
