Malaysia renews rare-earths supplier Lynas’ operating licence for 10 years

[KUANTAN] Malaysia has renewed Lynas Rare Earths’ operating licence for 10 years from Mar 3, the Australian rare-earths producer said on Monday (Mar 2).

Lynas said it received a letter from Malaysia’s Department of Atomic Energy confirming that its Malaysia operating licence has been renewed for a decade, with the formal licence to be issued by the regulator “in due course”.

The group is one of the few rare-earths suppliers outside China with commercial-scale processing capacity.

“Lynas welcomes the longer licence term which provides greater investment certainty for Lynas and for our rare-earths supply chain partners and customers,” chief executive officer and managing director Amanda Lacaze said in the company statement.

Lynas shares rose as much as 7 per cent to A$20.30 in early trade – their highest level since October 2025 – even as the broader ASX 200 benchmark fell about 0.5 per cent, according to Reuters.

The renewal follows years of scrutiny in Malaysia over radiation concerns linked to naturally occurring radioactive substances associated with rare-earths processing. Malaysia had previously granted an extension until March 2026, Reuters reported.

The Lynas Advanced Materials Plant in Gebeng, Kuantan, has operated since 2012. Malaysia’s Atomic Energy Licensing Board issued a temporary operating licence for the plant on Sep 5, 2012, and later granted a full operating-stage licence on Sep 2, 2014.

More recently, Malaysia granted Lynas a three-year operating licence period from Mar 3, 2020, to Mar 2, 2023, before subsequent extensions and amendments carried it to March 2026, amid continued debate over radiation and waste management.  

Separately, Lynas has announced plans to expand its rare-earth separation capacity in Malaysia, with the investment projected at about RM500 million (S$162 million).

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Lynas did not provide further details on the conditions attached to the renewed licence, saying the formal document would be issued later by the regulator.

Science, Technology and Innovation Minister Chang Lih Kang said that the renewal was granted with stricter conditions, including that after the first five-year period, the production of radioactive residues must cease entirely.

Any radioactive residues generated during that period must be neutralised through thorium extraction or other approved treatment methods to levels below one becquerel per gram.

He added that there will be no new construction of permanent disposal facilities in the future for water leach purification residues exceeding control limits under the Atomic Energy Licensing Act 1984.