The best outcome for Lynas would have been for Malaysia to approve Condisoil, hurry on through any licensing requirements and simply monitor Lynas to ensure environmental safety. Just let Lynas run how it wants to run.
Lynas then would have expanded its LAMP more cheaply and efficiently than any other option.
But that's not the case as we all know.
It will be more expensive to build PDFs than sell Condisoil.
It will be more expensive to build from scratch a C&L here than in Malaysia.
It will be more expensive to power and purchase and transport chemicals and reagents at the Aussie facility.
It will be more expensive and uniony/red tapey to employ Australians to work at the plant.
Company tax will be higher here than Malaysia.
There might be some cost savings in transport, efficiency gains between Mt Weld crew and C&L and other synergies.
But by and large the Malay government has cost and will cost Lynas shareholders a motza (at the same time as screwing over its own people, employees and upstream manufacturers).
Lynas will gain a reduction in sovereign risk and the opportunity to build from the ground up, utilising everything it has learned in the last decade. That may have long run benefits that outstrip the short run pain.
It's impossible for either of you to know at this stage.
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