explanation to why sp has dropped, page-55

I think part of the continuing problem is the perception that Malaysia in general has a quality assurance problem. The IAEA report has effectively recommended the Malaysian Gov improve the QA effort.

Ignoring the misleading propaganda about types of radiation and dosages involved, the NYT article, true or false, brought the QA issue fully under the spotlight, with the most exquisitely sensitive timing. True or false there is a track record that makes it believable. The Singapore Business Times suggests that "despite his(Mr Curtis) assurances that the plant is being made to specifications, the NYT report is bound to create further doubts among naysayers who fear contamination at some point because of the perception that Malaysia's maintenance is often found wanting."

The locals are concerned about the homegrown QA thing, not just the Aussie/funds that are dumping their shares. Comments on articles like this one at the malaysian insider http://www.themalaysianinsider.com/malaysia/article/protest-groups-say-lynas-undermining-government/ show to me the locals don't trust the MY gov or their own countryman's ability any more than most on this board appear to trust our labor gov. Does any country trust their Gov?

This is a PR disaster for both the Malaysian Gov and Lynas management. As the IAEA says they are both responsible for demonstrating the QA issues are under control and they need to be communicated to the community in an open and verifiable manner. I think the sp drop is based primarily on a belief that we are not being told the truth.

Why would we believe that? I can think of two good reasons. Firstly there is a concern that the positive story about Lynas sounds too good to be true, and we're constantly told if it sounds too good to be true then it probably is. Secondly Australians do have lingering doubts about Malaysian quality and reliability, based on various things from Qantas maintenance issues in Malaysia to the Proton brand not cutting it with Aussie buyers, and the occasional odd experience working with some Malaysian expatriates in the Australian public service or elsewhere.

Things will only be resolved when trust is reestablished and some quantitative and verifiable QA and management plans are in place. Because a lot of these plans will now be going through the Malaysian Public Service there is also the lingering doubt that fast track timelines will not be met.