Article today - don't ask me it just caught my attention due to...

Article today - don't ask me it just caught my attention due to the other compounding issues with Lynas and if Lynas don't get production sorted soon regardless of reasons sp will fall further.


Lynas shares sink after debt renegotiation with Sojitz

by: David Winning
From: Dow Jones Newswires
September 26, 2012 11:33AM

RARE earths explorer Lynas said that it had been forced to renegotiate its debt covenants with Japan's Sojitz after long-running protests delayed the start-up of its processing plant in Malaysia.

The revised agreement with Sojitz postpones the measurement of some financial covenant tests by nine months, Lynas said in annual accounts out today. Sojitz agreed in March 2010 to loan $US225 million to Lynas in return for shares in Australian company and a supply of rare earths.

At the time, Lynas said it expected the Malaysian plant to begin operating from the third quarter of 2011. However, its start-up has been delayed by protests involving local politicians and environmentalists who argue the facility poses risks from radioactive material.

The Malaysian government awarded Lynas a two-year license to operate the plant earlier this month, but the protesters have now sought an injunction from Malaysia's Kuantan High Court to prevent it starting up. A hearing is due on October 4.
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In its statement, Lynas said the hearing wouldn't disrupt its start-up plans, and that it remained on course for the first "feed to kiln" at the Kuantan plant after the hearing.

Shares in the company fell 4.4 per cent to $0.76 in early trading, a three week low.