Lynas Rare Earth ( OTCPK:LYSCF ) said Monday it is trying to get its new plant in Australia up and running, while it remains concerned it may need to partly wind down activities at its Malaysian plant.
Lynas ( OTCPK:LYSCF ) faces the possibility it will be forced to stop cracking and leaching in Malaysia after regulators said it must halt importing and processing rare earths concentrate beginning in July.
Lynas ( OTCPK:LYSCF ) has appealed Malaysia's decision, while it also races to finish construction of a plant in Kalgoorlie in Western Australia to handle cracking and leaching, essential to producing neodymium and praseodymium used in magnets in sectors from electrified transport to defense.
The plant in Kalgoorlie was part of a growth project but may now be needed to replace its Malaysian facility, if Lynas ( OTCPK:LYSCF ) is unsuccessful in its appeal.
"We have proven ourselves to be competent at bringing on new facilities... but I won't tell you a percentage confidence other than to say I think we have reasonable track record," CEO Amanda Lacaze told shareholders, according to Reuters.
The comments came as Lynas ( OTCPK:LYSCF ) reported an H1 net profit of $150.1M, down from $156.9M in the previous half-year .
For further details see:
Lynas appeals Malaysian move while racing to ramp up in Western Australia