PETALING JAYA: Concerns over protests and legal challenges to...

PETALING JAYA: Concerns over protests and legal challenges to Lynas Advanced Materials Plant (LAMP) operations in Gebeng, Kuantan may have influenced German engineering giant Siemens into backing down from a proposed joint venture with Lynas Corp to set up a magnet factory.

Lynas Corp is the Australian rare earth miner operating LAMP.

"There was a plan [for a joint venture with Siemens], but with all the hoo-haa [over the refinery]... Siemens, a [big global] company, took a step back from the standpoint of a business strategy," a source in Lynas Corp told theantdaily.

"The initial plan was to open a plant near Gebeng, with 1,500 local jobs confirmed," said the source.

But since the plan did not materialise, this is a loss for the local community and the country, he added.

However, all is not lost as a deal is still on the table, though with some changes planned.

"It is still on the table, negotiations are open though with a new business model," said the company insider.

Local environmental activists and opposition politicians spoke out against the proposed venture when it was announced sometime back.

They attempted to put pressure on Siemens to back away from the deal, though the German company made it clear that its involvement with Lynas has nothing to do with the Australian miner's much-opposed refining operations.

Despite this, the source said Lynas remains bullish that once production at LAMP ramps up to the projected capacity of 22,000 tonnes of rare earth oxides annually, it will act as a catalyst for economic growth.

Lynas believes that others may decide to start operations nearby, instead of having rare earth shipped offshore as it will be more cost-effective.

Moreover, this will benefit the country not only in terms of job creation but also technology transfer as companies with expertise in high-value intellectual-property protected industries may come in.

This is a boon, the source said, as at present no Malaysian companies possess the expertise to process rare earth oxides into marketable high-technology products like supermagnets.

Asked if Lynas' failure to obtain rights to a rare earth ore-field in Malawi may affect supply of rare earth ore concentrates to meet the new 22,000 tonnes production target, the source dismissed any concerns.

While initially designed for production of 11,000 tonnes per year for its operations, new investments from Japan made it a requirement for Lynas to up its LAMP capacity to 22,000 tonnes by building additional infrastructure.

As of now, it is believed that all supplies or ore concentrates for the Malaysian operation are from Lynas' primary mine in Mount Weld, Australia, and would be adequate to cater for the 20 per cent of world rare earth demand that LAMP is expected to fulfil.

The source said the Malawi operation is a different venture all together and is more for Lynas to diversify its supply base in the long run than to top up Mount Weld ore concentrate supply to its Malaysian refining facility.

Source: http://www.theantdaily.com/news/2013/11/14/concerns-over-protests-scuttle-siemens-lynas-joint-venture

Lynas is doing it again and again. Now an "insider" at Lynas is talking to the press. Really disgraceful behavior of management to SH!