Social Media Endangers Lynas Plant In Malaysia

Creative protests flooded the Internet

NEW YORK (SA) -- Lynas and Molicorp represent the two most significant rare earth market players outside of China. While Malaysian authorities gave permission for the Australian-based Lynas to open up its rare earth processing plant, a lot of Malaysians protest it and promised to block shipments from Australia. The ruling political coalition controls news sources in Malaysia, which normally would make an effective protest almost impossible. In spite of this fact, the protesters, using social media like Facebook, Twitter and Blogspot with the support of opposition politicians, made their case well-known in Malaysia and all over the world. Moreover, Lynas CEO Nicholas Curtis admitted he did not recognize the power of social media. This unprecedented role of social media in Malaysia underlines the fact that it can threaten or even destroy a company's position in any country. Source:  Buy Lynas: Intriguing Hybrid Asset Class (Reliability: Medium)

Comment: Social media produces its content extremely cheaply, while being sometimes inaccurate but immediate in its impact.

 

Rare Earth Source Unlocked in Malaysia

SYDNEY (WSJ)—Australian company, Lynas Corp., won their battle to open a strategic minerals’

Lynas Corp plant in Pahang, Malaysia

processing plant in Malaysia. The Malaysian Atomic Energy Licensing Board (AELB) statement approving  a two-year temporary operating license for a rare-earth refinery in Pahang was released on 3 September 2012.  The processing of rare earths from Western Australia's mines is planned to begin next month. . The AELB held off final approval of the project after protests concerning the perceived radioactive waste hazard.  Source: Rare Earth Boost From Lynas Win (Reliability: High)

Comment: Shares in Lynas closed up 41 percent a share on Thursday. Lynas intends to produce one-sixth of the world’s supply of rare earths after reaching full capacity. 

Activists Threaten Protests For New Malaysian Rare Earth Refinery

Kuantan, Malaysia is east of Kuala Lumpur

KUALA LUMPUR (NYT) -- Malaysian activists, worried about radioactive byproducts from a newly constructed rare earth refinery near the town of Kuantan, Malaysia, have threatened to "to paralyze the whole port until the raw materials leave our port."  Lynas, the Australian company that owns the refinery, plans to begin processing activities in October 2012.  The company is currently seeking to address the core concerns of the protestors and claims that there are no radiation hazards.  Source:  Protests Promised Over License for Malaysia Rare Earth Plant (Reliability:  High)

Comment:  Lynas, one of Australia's largest companies, claims that it is providing the first new source of rare earths from sources outside of China from its mining operations at Mt. Weld in western Australia.