I think the invitation from the Malaysian government for Lynas...

I think the invitation from the Malaysian government for Lynas to build and operate LAMP in Malaysia extends far beyond the boundary of simply attracting another foreign company to open up shop in the country.

This could very well be an ambitious program by the Malaysian government to make Malaysia the next Rare Earth Hub of Asia. Malaysia has witnessed the importance of rare earth and how these 17 essential elements have helped China’s transformation into the economic beast that it is today - and all within just two decades.

When you look at where most of the world’s smartphones, tablets, TV screens, hand-held devices and so forth are made, you can appreciate that this would not have been possible for China without an abundance supply of the 17 essential elements so vital to today’s technological advancements. And when you look at how you may be able to influence your competition in the area of technology and development, it pays if you are also the main supplier of those rare earth elements. This is an absolute advantage over your competition which allows you to tighten or loosen the noose at will. This is the rare earth advantage that Malaysia sees in China today.

Of course, this is not at all suggesting that Malaysia aims to eventually be the predominant supplier of RE over Lynas in any shape or form. But the question will have to be asked of what mutual agreements, if any, between Lynas and the Malaysian government on a guaranteed supply of RE quota reserved for Malaysia, as a paying customer, beyond stage one and into future ramp ups?

Beyond the Japanese, is Malaysia likely to also be Lynas’ very important customer, resulting in Malaysia stockpiling its own RE supplies to entice and attract new technology investments from within and abroad, and under the banner “Abundant Rare Earth Supply Hub”?

Being surrounded by so much competition for trade and investments from its surrounding neighbours such as Singapore, Indonesia, Philippines, Thailand and Vietnam, this bold and innovative move by Malaysia into the rare earth venture may just help to edge out its main rivals and help make it the next hub for technological resource, development and manufacturing. With Lynas operating within its borders, there is sure to be a guaranteed readily available and abundant supply of rare earth (at wholesale price) for Malaysia to achieve such an ambitious plan. This, I believe, has been the ultimate goal of the Malaysian government all along. Lynas can only greatly benefit from this scenario.

(Disclaimer: this is only based on my own thoughts. As always, do your own research).