Lynas share price leaping higher as Malaysia green lights rare earths facility

Shares in the ASX 200 rare earths miner are up 17% since late afternoon trade on Tuesday.

| More on:
a man in a high visibility vest and hard hat holds a thumbs up at a mine site with heavy equipment in the background.

Image source: Getty Images

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 Rare Earths Ltd (ASX: LYC) share price is surging today.

Shares in the S&P/ASX 200 Index (ASX: XJO) rare earths miner closed yesterday trading for $6.82. At the time of writing on Wednesday morning, shares are swapping hands for $7.15, up 4.9%.

For some context, the ASX 200 is up 0.6% at this same time.

Here's what investors are considering today.

What did the ASX 200 miner report?

The Lynas share price is leaping higher after the miner reported late yesterday that its wholly owned subsidiary, Lynas Malaysia, was issued a variation to its operating licence.

Lynas will now be allowed to keep importing and processing Lanthanide Concentrate, sourced from its Mt Weld mine in Western Australia, at its Malaysia facility. The newly amended operating licence runs through 2 March 2026.

Just last week, Lynas noted that its legal issues with the Malaysian government over those importation rights were ongoing.

Now the miner said that under the new operating licence, it will increase its existing research and development (R&D) investment in Malaysia from 0.5% to 1% of Lynas Malaysia's gross sales.

Lynas reported it will also proceed with capital works as planned to expand the downstream separation capacity at the facility to approximately 10,500 tonnes per annum of NdPr.

Following on the release of the announcement in late afternoon trade yesterday, the Lynas share price leapt 13% in a matter of minutes to close flat on what had been looking to be a day of steep losses.

"As the leading producer of rare earths outside of China, Malaysia plays an important role in the global rare earths supply chain," Lynas CEO Amanda Lacaze said. "This decision provides a strong foundation for further development of the Malaysian rare earths industry."

Lacaze added:

Lynas deeply values our people and communities in Malaysia who recognise that Lynas Malaysia is an excellent employer and a safe and responsible community member, as demonstrated by our over 10 years of safe operation…

We look forward to continuing to contribute to the development of the rare earths industry in Malaysia.

Lynas share price snapshot

With a big late afternoon gain yesterday and more gains this morning, the Lynas share price is now only down 7% in 2023.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

Miner standing in front of a vehicle at a mine site.
Resources Shares

What is the outlook for South32 shares in 2024?

Is there light at the end of the tunnel for this mining stock?

Read more »

Female miner standing smiling in a mine.
Resources Shares

Why is the Chalice Mining share price soaring 14% on Monday?

Chalice Mining shares are rocketing amid some big news.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Resources Shares

The pros and cons of investing in this $12 billion ASX lithium share right now

Let’s dig into this opportunity.

Read more »

Two cheerful miners shake hands while wearing hi-vis and hard hats celebrating the commencement of a HAstings Technology Metals mine and the impact on its share price
Resources Shares

Own Rio shares? Here's why you just had a great month

If you own Rio shares, you'd be pretty happy with what happened last month...

Read more »

A female employee in a hard hat and overalls with high visibility stripes sits at the wheel of a large mining vehicle with mining equipment in the background.
Resources Shares

The Fortescue share price rocketed 12% in November. Here's why

The Fortescue share price raced ahead of rivals BHP and Rio Tinto in November.

Read more »

A miner in a hardhat makes a sale on his tablet in the field.
Resources Shares

The 2 ASX lithium shares head and shoulders above the rest

There are many stocks to choose from, but the team at Blackwattle reckons this pair is the best by far.

Read more »

Three satisfied miners with their arms crossed looking at the camera proudly
Dividend Investing

3 top ASX 200 mining shares for bank-busting dividend income in 2024

All three ASX 200 mining shares pay fully franked dividends.

Read more »

Miner looking at a tablet.
Resources Shares

What can ASX 200 investors expect from the Rio Tinto share price in 2024?

Atop a big boost in the Rio Tinto share price over the past 12 months, the ASX 200 miner also…

Read more »