Australian Rare Earth Miner Lynas Soars On Malaysian Election Win

Malaysian stocks got off to a racing start Monday after the ruling coalition secured another term in office by a narrow margin. The result removed the risk of an opposition victory or a hung parliament that would have tested the country’s democratic institutions. Malaysia’s currency rose to a 22-month high on the news; stocks rose 7% in early trading. Government-backed companies led the index higher. But the most dramatic market reaction came in Sydney where investors piled into miner Lynas Corp., which has built a rare earth refinery in Malaysia in the face of local opposition. Opposition candidates had promised to reexamine the mining license. Now it seems that the $800 million plant in Kuantan, which opened in February, should have a smoother run. Shares in Lynas rose 15% to A$0.57.

Lynas stock got a boost in March when a court in Malaysia threw out a lawsuit by environmentalists. But the looming election kept the company on edge, given the support from opposition candidates for the anti-mine campaign. Lynas says that the mine’s impact will be limited and that it has complied with Malaysia’s conservation laws. China is the largest producer of rare earth metals and has imposed export quotas in past years, stoking interest in a diversification of supply. The Lynas plant in Malaysia was approved last November after a lengthy approval process.


Rare Earth Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten Picture Center: http://picture.chinatungsten.com
Tungsten Video Center: http://v.chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com

• < Prev
• Next >