Saturday, October 6, 2012

Rare Earth Plant Delayed Again

Save Malaysia Stop Lynas are the primary activist group
attempting to stop production of rare earths in Malaysia.
KUALA LUMPER, MALAYSIA (NY TIMES) -- A court in Malaysia has delayed the license for Lynas Corp to begin production at a controversial rare earth plant. A decision will be made on October 10th on whether production will be blocked permanently.
The plant is built and ready to go, but production has been delayed due to environmental and safety disputes. It is one of the biggest plant of its kind outside of China and has faced resistance since construction started two years ago.
In order to break China's grip on rare earths supply, plants such as these, need to be built and producing in order to compete. The current delay is based on safety concerns, however, activists are reviewing whether the government has the right to allow the plant to operate. 'Save Malaysia Stop Lynas' has its work cut out as it tries to prevent Lynas corp from starting production at a plant valued well over $800 million.
Source: Malaysian Court Delays Rare Earth Plant (Reliability: High)

Comment: US businesses will be hoping that Lynas corp wins this battle with activists and those wishing to see their license to mine revoked. If China's stranglehold on rare earths and minerals continues, they will control supply and prices of these components that are attributed to technology products, cars and many other industries in the US.

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