Lynas Asks for “Fairness and Transparency” Ahead of Malaysian Review

Australian rare earth producer Lynas (ASX:LYC,OTCMKTS:LYSDY) has released an open letter to the government and people of Malaysia, ahead of a government review of company operations in the country. 

After weeks of speculation that the Malaysian government would launch a review of Lynas, company CEO Amanda Lacaze released an open letter, urging “fairness, objectivity and transparency,” be practiced in the evaluation.

“We are compliant with our license conditions and we work closely with the Malaysian regulators to identify ways to continuously improve our operations,” reads part of the letter.

The missive follows weeks of media conjecture that a review would commence. More recent reports speculated the investigation into Lynas’ practices would be chaired by Deputy Minister in the Prime Minister’s department Fuziah Sallehan, an outspoken Lynas critic.

“From media reports, this person has been quoted as stating it will not be an independent review,” wrote Lacaze. “To date, Lynas has seen media reports about this review committee, however we have not been notified of the membership of this review committee, the scope of the review or the terms of reference of this committee.”

Lynas has been in operation in the Asian nation for six years and has complied with all regulatory guidelines, according to a press release circulated in late September.

The government committee will examine Lynas’ rare earth refinery plant in Pahang and whether it met regulatory requirements when it was constructed. Since taking power earlier this year, the current Malaysian administration has expressed concerns over environmental hazards the refinery might pose.

In mid-September worry over the pending review caused Lynas stock to drop by 18 percent in one day, prompting the company to release a statement affirming its willingness to cooperate in any review or examination of refinery practices.

“We hold ourselves to a high standard and will cooperate with any review confident in our performance,” noted the September 24, press release.

Lynas shares remained flat on Wednesday (October 3), trading at AU$1.645.

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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.