Ann: Malaysian Operating Licence Renewed, page-70

IMO the expected outcome.
I believe Lynas were right not to challenge the initial decision too fiercely at the time in 2019, especially not legal action. In that highly politicised situation challenging or criticising the imposed restrictions would only have made things worse. Any softening on their part would then have been a back down and loss of face.
Now, with Kal near completed and Lynas' position far less vulnerable the gloves can come off. AL's references to "a significant variation from the conditions ... under which Lynas made the initial decision to invest in Malaysia." screams sovereign risk as does "... the closure of a key part of the plant will put further investment in the plant, the Malaysian rare earths industry and foreign investment at risk". Go AL!
Next they need to announce 200-500 Lynas redundancies (however many run the C&L plus any readily relocated to Oz). Maybe offer them jobs in the Kal plant. But keep the community engagement stuff in place of course. A strategic partnership announcement with someone like Shin-Etsu (perhaps metal making) co-located with their Vietnam operations would be nice too.
Appeals and court action as well of course.
Gloves off.