Lynas up as Malaysia backs license

Lynas Corp, the Australian company building the world's largest rare
earths refinery in Malaysia, rose the most in three weeks in Sydney
after the Southeast Asian nation rejected a bid to cancel its license.

Lynas advanced as much as 15 percent to A$1.01, the biggest gain since May 28.

The
shares were 10 percent higher at 97 cents at 11:13 a.m. local time,
compared with a 1.6 percent gain for Australia's benchmark SandP/ASX
200 Index.

Malaysia's minister of innovation, science and
technology rejected an appeal by local residents against Lynas's
temporary operating permit on June 15, while imposing extra conditions
on the plant.

The permit granted in February, subject to conditions, has been held up due to appeals by protesters to government and in court.

"Lynas
has passed every review it has been subject to, and we now look forward
to the issuance" of the license, Executive Chairman Nicholas Curtis
said today in a statement.

Rare earths, 17 chemically similar
elements, are used in Apple Inc's iPod music players, flat-screen
televisions, magnets and hybrid cars.

Lynas's plant in the
eastern state of Pahang would be capable of processing 22,000 metric
tons a year should a second phase be completed, it said in November.

Lynas can satisfy the new conditions announced by the Malaysian government, the company said today.