Lynas Corporation (ASX:LYC,OTCMKTS:LYSDY) has announced that it has received an extension to the temporary approval it was granted by the Malaysian government to store solid rare earth residue knows as NUF.

Australian-based Lynas is one the largest rare earth development companies with an ongoing project in Malaysia. Word of the favorable announcement drove Lynas’ shares up by 16 percent.

As quoted from the press release:

Lynas has previously submitted an Action Plan for the Lynas Malaysia plant to be licensed as prescribed premises for the management and disposal of NUF. The regulator has confirmed that it is considering the Lynas application in accordance with applicable legislation. Lynas is in the process of obtaining the additional documentation required to support the application, including an Environmental Impact Assessment and approval from other relevant authorities.

In the meantime, Lynas has been granted an extension of the temporary permission to store NUF at the Lynas Malaysia site.

Click here to read the full announcement