Wan Azizah masak kek keju demi kesedaran isu jenayah

Zulaikha Zulkifli
3:14PM Okt 19 2012

Presiden PKR Datuk Seri Dr Wan Azizah Ismail hari ini membawa kempen kesedaran ke atas peningkatan kes jenayah ke dapur rumahnya sendiri – melalui demonstrasi memasak kek keju kepada sekumpulan kaum ibu.

Program santai selama kira-kira sejam itu bagi mempromosi laman aktiviti “Ibu Malaysia Menentang Jenayah (Malaysian Mothers Against Crime)” di Facebook yang diusahakan Biro Komunikasi PKR

NONEBercakap pada sidang media selepas demonstrasi itu, Wan Azizah berkata, beliau mensasarkan seramai 10,000 orang akan menyukai laman Facebook itu bagi menyatakan mesej kepada menteri dalam negeri berhubung isu tersebut.

Katanya lagi, projek itu diusahakan memandangkan tidak banyak jenayah yang melibatkan kaum wanita diberi perhatian.

Namun, golongan ibu tetap berasa tidak selamat walau walau kadar jenayah melibatkan mereka tidak terlalu serius.

“Peningkatan jenayah semakin tinggi. Walaupun jenayah dalam negara (tidak teruk), Alhamdulillah. Tetapi perlu beringat agar wanita berhati-hati.

NONE“Kewujudan laman Facebook itu bertujuan supaya mereka dapat berkongsi cerita bersama, beri pandangan dan nasihat. Dari pengalaman itu akan beri peringatan kepada sesiapa yang membaca,” kata Wan Azizah.

Beliau berharap, usaha mengetengahkan isu berkenaan di laman sosial akan dapat memberi kesedaran kepada kaum wanita betapa seriusnya masalah jenayah dalam negara.

“Ia lebih kepada bagi menggalakkan kaum ibu sedar tentang jenayah,” katanya lagi yang berharap kek bekas tangannya itu akan dapat membantu usaha tersebut.

Semakan pada laman Facebook berkenaan pada tengahari ini menunjukkan seramai 1,016 orang menyukainya.

VIDEO l 5.35 min


开班教妇女烘芝士蛋糕 阿兹莎盼提升罪案醒觉


2012年10月19日 下午4点11分



这项活动是配合推介该党在面子书开设“母亲抵御犯罪”页面(Malaysian Mothers Against Crime)。








MEDIA RELEASE                                                          OCTOBER 19, 2012



Crime grows in times of economic uncertainty dominated by income disparities, and rising disconnect in society.  My bake event drives a response primarily to the latter.

Right now, either people feel nothing can help the situation, or that no one cares which means they too should not care.

We start to care by acknowledging each other, and this bake event helps bring together mothers like me who do want to live in a safer and better Malaysia.

There are brazen criminal acts because there are those convinced there is group apathy. By bringing this group together sends the message that the mothers do care, they are watching and they are willing to act.

Acting is plain and simple. To keep an eye on what happens in the neighbourhood, to be informed when neighbours go-off on trips, to share with others safety tips and to seek engagement from the authorities.

This event will encourage those attending and those following the event, that they are not alone and that they must act because others similar to them are beginning to.

This is how we intend to build the community within “Malaysian Mothers Against Crime” (https://www.facebook.com/mumsXcrime)

An effective response to crime is the broad participation of the community. This is our effort.


Lynas – The Journey To Nowhere

Rare Earth Future


Back in January this year, investors were becoming dispirited with progress on LAMP completion.  I wrote an article for this site called “Where Lynas is at”.  My final summation was:

“Clearly, Lynas will no longer be the same company after POL approval.  It should be one heavily in demand.  At a time when investors are looking for a safe place to invest, yet one with outstanding returns, many will want to be a part of it.”

The article was premature and I strongly regret writing it.  10 months later, the LAMP has been completed  less than 2 months, the Pre-Operating Licence has been approved, issued and then suspended.  It remains suspended.

Along the way, I have seen countless strong supporters of the company lose most of their assets as the continued delays and uncertainties have allowed the big players to control the market and manipulate the share price as low as 56 cents.

The uncertainties have been greatly assisted by the poor flow of, at times misleading, information from the company.  I will detail what the company has done, how it has poorly informed the market over a considerable period.  It has been the light on the hill on a dark night, enticing us to stagger to the top only to see that light extinguished and another one to appear on the next hill.  And so on.

The LAMP was originally scheduled to be in production by 30/06/11.  Not only is it still not producing, there is not one iota of confidence that it will ever produce.

In my view, the situation has now become so bad that a Trading Halt should be imposed until the market is once again fully informed that the LAMP can either operate or it can’t.

Just follow this timeline of company announcements and see if you agree with me about how the market has been misled:

Sojitz Funding announcement 30/3/11

Budgeted Phase 1 construction costs are fully funded

•The Mount Weld Concentration Plant is completed and is ready for the first feed of ore. Lynas is working on satisfying the final requirements of the WA Department of Environment, which are taking longer than expected to satisfy. Lynas expects to satisfy those requirements within 3 to 4 weeks, and Lynas understands that start up of the Mount Weld Concentration Plant will occur upon satisfaction of those requirements

•The Lynas Advanced Materials Plant (LAMP) is due to be commissioned in 3Q 2011

•All approvals in Australia and Malaysia are in place to complete construction of processing plants

•All major equipment procured

•Lynas has signed six supply contracts and two letters of intent in relation to future production

(The market has now been informed that 30th June completion will not be achieved.  Completion is now going to happen some time during the next 3 months.  Deliberately not very precise?  This advice is from experts in construction of such plants who not so long before were assuring us that completion would be by 30/6! A later announcement was more precise and used a September date for completion.  Couldn’t be October because that was in the 4th quarter, wasn’t it, and the Company didn’t want to let on just yet that the 3rd quarter wasn’t going to be achieved.)

5 Million Hours LTI Free Achieved at Lynas Advanced Materials Plant 30 September 2011

Lynas Corporation Limited (“Lynas”) (ASX:LYC, OTC:LYSDY) is pleased to announce a major milestone in achieving 5 million hours Lost Time Injury (“LTI”) free in the development and continuing construction of the Lynas Advanced Materials Plant (LAMP) in the Gebeng Industrial Estate, near Kuantan, Malaysia.

The Concentration Plant in Western Australia commenced feed of ore on 14 May 2011 and is performing well. First feed of concentrate at the LAMP is scheduled to be achieved in the fourth quarter of 2011. Lynas has received all required approvals to construct the LAMP, and is in the process of applying for all pre-operation and operation approvals.

(Ah, the 30th of September has now come, so the Company has to announce a later completion date.  Again, it is unhelpful to the market by advising an imprecise time of “fourth quarter of 2011”.  Some investors were able to imagine a possible date of 31/10, some, no doubt were more careful and thought 30/11 more likely, and the rest had every right to believe 31/12/11 was as late as it could go.  Weren’t we all sadly mistaken?!

Quarterly Report 31/10/11

Slight delays in final procurement packages and associated delays in construction and contractor resourcing means it is likely that  first feed to kiln will not occur until early Q1 2012.

For once the company didn’t wait till 31/12 to announce they were wrong – they strung us out that little bit further with “early Q1 2012”.  Now, you could think that might be early January or even early February but certainly not early March.  In any case, whatever you thought that announcement meant, you would have been wrong.

The Chairman, Nick Curtis, gave his address at the AGM on 30/11/11 and said:

 “This time next year I will not be reporting to you the sales we are about to achieve, but rather celebrating with you the reality of our production and sales, and speaking again of the huge potential of our business.”

He also said the LAMP was 78% complete as at 30/9/11.  He didn’t say that with 22% still to go, there was no chance of the deadline of early first quarter 2012 being met.  That was his opportunity to confess to the delays but he said nothing.  Nothing other than that ridiculous statement above which is also clearly false.

Early first quarter 2012 was almost past before he announced as part of the Mt Kellet funding announcement:

“Additional engineering completion requirements and consequential delays in procurement, as well as the recent monsoon season, are the primary causes of the delay for LAMP Phase 1. Based on the latest information from the construction manager, Lynas anticipates first feed to kiln and first production during the second quarter of 2012, subject to regulatory compliance and issuance of the pre-operating licence for the LAMP.”

2 months had gone by during which it must have been clear to all in the Company that the previous deadline of early quarter 1 2012 would not be met.  Why did he wait so long before informing the market?

Another month passed before the next announcement.  It was the Investor Presentation 14/02/12

“LAMP construction: 91% complete

Ready-for-Start-Up program (operational preparedness): 91% complete

Malaysia headcount: 236 (now at 85% of total expected workforce)

Pre-commissioning test packs: 33% complete

Temporary Operating Licence for the LAMP approved

Lynas is on track for first feed to kiln and first production in Q2 2012.

This was fantastic news.  All the market could think of was that TOL had been approved.  In the euphoria and with the lack of Company explanation, the market believed “TOL approved” meant production could start as soon as the LAMP was ready.  Not so, not so.


“On 1 February, Malaysia’s Atomic Energy Licensing Board (AELB) announced its approval of the Temporary Operating Licence (TOL) for the LAMP in Gebeng, Malaysia. The AELB’s approval decision came after a thorough and extensive review of the project by the Malaysian Government regulatory authorities. An appeal in respect of the AELB’s decision has been lodged with the Minister of Science, Technology and Innovation. The Minister’s decision is expected shortly.

As at the end of the period, construction of Phase 1 of the LAMP was 98% complete and pre-commissioning test-packs were more than 85% complete. Lynas is on track for first feed to kiln in Q2, subject to the issuance of the TOL. “

3 months after approval, we were informed that TOL still had to be ISSUED.  “Approved” didn’t mean approved at all.  Production couldn’t start till TOL was ISSUED.  Oh, shit.  In the midst of that disappointment, the Company lifted our spirits by claiming it was on track “for first feed to kiln in Q2”.  Clearly, the LAMP at “98% complete” was going to ready to go by 30th June.


Lynas Corporation (ASX:LYC, OTC:LYSDY) advises that the report of the Parliamentary Select Committee (PSC) established in relation to the Lynas Advanced Materials Plant (LAMP) was debated in the Malaysian Parliament on 19 June 2012.

As previously announced on 19 March 2012, the Malaysian Government established the PSC with the purpose of helping to raise public awareness concerning the LAMP.

In tabling its report, the PSC makes clear that it has taken into consideration a broad range of issues raised by concerned citizens, special interest groups and NGOs relating to public health and environmental safety, and subjected the LAMP to intense independent, expert scrutiny.

The report recommends that the Temporary Operating Licence (TOL) be issued for the LAMP. In addition, the report notes that Lynas has complied with the standards and laws in Malaysia, which are in line with international standards.”

This again showed that the government believed the TOL should be ISSUED.  Why then, did the AELB not issue it right there and then?  Of equal importance, why did Lynas not use the opportunity to tell the market its 30th June deadline for completion in only 10 days time was not going to be met?!

Quarterly Activities Report 31/7/12

“The Lynas Advanced Materials Plant (LAMP) Phase 1 construction project in Malaysia was completed Lost Time Injury (LTI) free. The project involved a total of 8,690,000 hours worked without an LTI. Subsequent to the end of the reporting period Lynas Malaysia remains LTI free.

• On 18 June 2012, Lynas announced that the Ministry of Science, Technology and Innovation (MOSTI) Minister, Datuk Seri Panglima Dr. Maximus Johnity Ongkili dismissed the appeal that was lodged under Section 32 of the Atomic Energy Licensing Act in relation to the decision of the Malaysian Atomic Energy Licensing Board (AELB) to approve the issuance of a Temporary Operating Licence (TOL) for the LAMP.

• Lynas also welcomes the findings of the Malaysian Parliamentary Select Committee (PSC) report on the LAMP which recommended that the TOL be issued for the LAMP. The report noted that Lynas has complied with the standards and laws of Malaysia, which are in line with international standards.

• Construction of Phase 1 of the LAMP was completed during the quarter and further progress was made on various pre-commissioning activities. Overall commissioning progress was 64% complete as at the end of the quarter. Construction of the Phase 2 expansion of the LAMP continued during the period and is on track for construction completion in early 2013.”

It waited a full month past the deadline before informing the market that in fact, the LAMP had been completed during June.  Right…so what was this next announcement about?

 “LYNAS Phase One LAMP complete 28 August 2012

Lynas Corporation Limited (Lynas) (ASX:LYC, OTC:LYSDY) has completed Phase One construction of the Lynas Advanced Materials Plant in Malaysia.”

Clearly REAL completion did not occur till 28/8.  Or is it still not complete?  Who knows?  Not I.


Lynas Corporation Limited (“Lynas”) (ASX:LYC, OTC:LYSDY) confirms that the Malaysian Atomic Energy Licensing Board (AELB) has today issued the Temporary Operating Licence (TOL) for the Lynas Advanced Materials Plant (LAMP).”

So on 5/9/12, the TOL (already approved in February!) was finally issued.  The LAMP was ready to go, concentrate could be imported and production could start.  No, no, not quite.  Somehow, the TOL issue was able to be suspended.  So it is now an approved, issued but suspended licence.  I could ask in wonder, “Who is in charge of Malaysia?”  We all must wonder.

Meanwhile, Lynas has suddenly started informing the market of important developments.  Oh well, it did wait 5 hours before passing on the information about TOL issue being suspended but that didn’t surprise me one bit.  If these court decisions aren’t price sensitive then I know nothing.  Lynas should be in a Trading Halt while these cases run.  I don’t just mean the day of the court appearance, I mean until a decision is handed down.  A FINAL decision.  That is the only way to stop the manipulation of the share price by people who already know the outcome of the legal proceedings.


Further to Lynas Corporation Limited’s (ASX:LYC, OTC:LYSDY) announcement dated 10 September 2012, the Kuantan High Court has decided to hear on 4 October 2012 an application by parties associated with the Save Malaysia Stop Lynas group for an injunction in respect of Lynas’ Temporary Operating Licence (TOL). The injunction application is part of an application seeking judicial review in respect of the June 2012 decision of the Minister of Innovation, Science and Technology to affirm the approval of the TOL.”


Lynas Corporation (ASX:LYC, OTC:LYSDY) provides the following update to its ASX announcement dated September 25, 2012, relating to a judicial review of the company’s Temporary Operating Licence (TOL) in Malaysia. The Kuantan High Court has adjourned until 10 October 2012 an application by parties associated with the Save Malaysia Stop Lynas (SMSL) group who are seeking an injunction against the TOL.

The deferral of the matter arose from additional affidavits submitted by Lynas. The applicants requested a brief adjournment to respond to those affidavits.”

Lynas waited till the night before the hearing before supplying the affidavits.  It would have known that would cause a deferral.  You may ask why Lynas did that.  I do.


Lynas Corporation (ASX:LYC, OTC:LYSDY) provides the following update to its ASX announcement dated October 4, 2012. The Kuantan High Court has reserved its decision on an application by parties associated with the Save Malaysia Stop Lynas (SMSL) group who are seeking an injunction against Lynas’ Temporary Operating Licence (TOL).

The injunction relates to an application by SMSL for judicial review of the Minister of Innovation, Science and Technology’s decision in June to dismiss an appeal against the decision of the Atomic Energy Licensing Board (AELB) to award the TOL.

The High Court is scheduled to deliver its decision on 8 November 2012. Until the decision is delivered, the interim order that was issued by the High Court on September 25, 2012 maintaining the status quo in respect of the TOL will remain in place.”

We are now in limbo till the 8th of November when some decision will be handed down by the court.  Perhaps the TOL suspension will be lifted.  Perhaps not.

The situation is abysmal.  Lynas is trading in a vacuum.  Trading needs to be halted until a clear picture of the Company’s future is available.

The Company itself needs to drastically change its attitude to the way it informs the market.  It should give accurate deadlines which are met.  Failure to meet them without sufficient reason should come at a cost to those concerned.

Right now, Nick Curtis bears ultimate responsibility for what has happened.  He needs to be told to change his ways or “it’s the highway”.


Bahas Isu Pengangkutan Awam di Kuantan



Handsard 10102012

Kementerian Pengangkutan, issue: pengangkutan awam


1540 (page 74)


Puan Fuziah Salleh [Kuantan]: Tuan Yang di-Pertua, saya nak sambung terus perkara yang kedua berkenaan dengan pengangkutan awam. Saya bersyukur kerana dalam bajet yang baru ini disebut berkenaan dengan Rapid Kuantan kerana telah saya suarakan daripada tahun 2009 lagi berkenaan dengan masalah pengangkutan awam di Parlimen Kuantan. Di bandar Kuantan tidak ada bas bandar, tidak ada teksi bermeter, ada empat taxi stand. Jadi kalau hendak naik teksi, kena pergi ke taxi stand ataupun kena telefon teksi.


Golongan yang paling bermasalah ialah golongan pendapatan rendah seperti ibu

tunggal dan sebagainya, golongan pesara dan golongan pelancong. Golongan pelancong

mungkin boleh telefon teksi dan mereka boleh bayar. Akan tetapi golongan berpendapatan rendah, kalau mereka memerlukan khidmat pengangkutan awam, mereka langsung tidak mampu sebab hendak panggil teksi pun RM10. Tambahan pula pusat pentadbiran ialah di Indera Mahkota, jauh daripada bandar Kuantan. Jadi kalau hendak pergi tanya tentang bayaran Kebajikan Masyarakat, memerlukan RM20 untuk pergi dan balik. Jadi mereka tidak mampu.


Jadi saya di sini, masalah Rapid ini perlu diteliti berkenaan dengan kos efektifnya Tuan Yang di- Pertua. Sebabnya semua syarikat tutup, bungkus kerana tidak cukup volume.


Saya harap Rapid Kuantan ini tidak menemui nasib yang sama kerana saya mahu masalah pengangkutan bandar itu ataupun pengangkutan awam itu diselesaikan.


Bukan setakat lip service, bukan setakat hendak senangkan hati orang Kuantan seolaholah dah selesai masalah rakyat tetapi yang pentingnya betul-betul dibuat satu kajian kos efektif, feasibility study dan sebagainya dan apa dia penyelesaian yang sebenar-benarnya.


Tidak semestinya dalam bentuk Rapid Kuantan tetapi satu bentuk pengangkutan yang boleh benar-benar survive, sustain, takut nanti esok bungkus juga macam syarikat-syarikat yang lain.


Video Perbahasan Bajet 2013 MP PKR Kuantan YB Fuziah Salleh

Rakaman video MP PKR Kuantan YB Fuziah Salleh bahas isu pengundi sah punya Mykad palsu, isu Lynas, RAPID Kuantan, isu kesaksamaan gender dan bajet gender pada 10 Oktober 2012 di Dewan Rakyat.

Activists Doubt AELB Can Regulate Lynas Rare Earth Project

The Malaysian Insider

October 12, 2012
AELB director-general Datuk Raja Abdul Aziz Raja Adnan (far left) being heckled by SMSL demonstrators after a court hearing in Kuantan on October 10, 2012. — Picture courtesy of Save Malaysia, Stop Lynas


KUALA LUMPUR, Oct 12 — Radiation regulator Atomic Energy Licensing Board (AELB) has failed its public duty to ensure sustainable development in the long term by granting Lynas Corporation three key licences needed to fire up its rare earth plant in Pahang, activists campaigning to block the Australian miner said today.

The Kuantan-based Save Malaysia Stop Lynas (SMSL) movement cast doubt on the regulator’s ability to keep Lynas in check by staying silent on the award of an ore import licence and a waste disposal licence despite earlier promises to follow the 11 recommendations by International Atomic Energy Agency (IAEA) and keep the public informed of the licensing process.

“This is unacceptable and we will fight until the end to stop this foolish decision. Lynas has no place in Malaysia,” said SMSL president Tan Bun Teet.

“How then can we, the people, trust them in ensuring that the rare earth plant will be managed to a high standard?” said  Kuantan resident Ismail Abu Bakar, who is among the SMSL campaigners opposed to the Lynas Advanced Materials Plant (LAMP) project in Pahang, in a media statement.

SMSL noted that the two licences were only made public during a court hearing last Wednesday and that AELB has yet to issue an official announcement.

The group said it was still concerned because Lynas has yet to release a safe long-term radioactive waste management plan.

The group has mounted a legal bid to put a stop to the project and won a small victory after the High Court extended a hold on the Australian company’s temporary operating licence (TOL) to November 8 while it decides whether to consider a review aimed at permanently blocking production at the RM2.5 billion refinery.

Unprecedented public anger against the Lynas plant has been fertilising Malaysia’s green movement and could affect voter sentiment ahead of key national polls that must be called soon.

The rare earth plant — the biggest outside China — has been ready to fire up since early May, but the company has been embroiled in environmental and safety disputes with local residents since construction began two years ago.

Lynas has repeatedly maintained that its plant is safe and cannot be compared to a previous Japanese plant in Bukit Merah, Perak owned by Mitsubishi Chemicals, that has been linked to a spate of birth defects and eight cases of leukaemia resulting in death.

The Asian Rare Earths (ARE) plant shuttered in 1992 following a public outcry but spent two decades and RM300 million to decontaminate the site.


Pemegang IC sementara disenaraikan sebagai pengundi

(Oleh Sidiqin Omar)
KUALA LUMPUR 11 Oktober: Pemegang Kad Pengenalan Pemastautin Sementara atau MyKas ada dalam senarai daftar pemilih Suruhanjaya Pilihan Raya (SPR), dedah Naib Presiden KEADILAN, Fuziah Salleh.

Dalam Dewan Rakyat semalam, Ahli Parlimen Kuantan itu membawa bukti salinan carian di laman web SPR, terdapat pemegang Mykas didaftar sebagai Hasmidah Surahbil dengan nombor kad pengenalan 820315-12-6446.

Hasmidah disenaraikan sebagai pengundi Dewan Undangan Negeri (DUN) Semenyih dalam Parlimen Hulu Langat. Turut dinyatakan ialah lokaliti pengundi di Taman Baiduri Jaya dan daerah mengundi di Bandar Teknologi Kajang.

“Perkara ini bukannya kali pertama berlaku. Kita telah lapor kepada Jabatan Pendaftararan Negara (JPN) dan SPR. Mengapa sampai hari ini nama tidak digugurkan?” soalnya pada perbahasan Bajet 2013 di Dewan Rakyat.

Jelas Fuziah, pemegang Mykas kebanyakannya merupakan pekerja asing dan mereka dikecualikan dari bayaran cukai. Mykas mempunyai tarikh luput dan perlu diperbaharui setiap setahun.

Fuziah turut mempersoal keberkesanan sistem Hubungan Terus Agensi (Alis) dengan JPN yang sewajarnya mengemaskini status pemegang Mykas secara automatik.

“Tapi nama pemastautin sementara itu berada dalam senarai daftar pemilih SPR sebagai pengundi sah. Ada orang lain berpeluang menentukan hala tuju negara dan memilih wakil rakyat dan pemimpin.

“Ini menjejaskan keselamatan negara dan merampas hak rakyat Malaysia apabila ada pihak lain yang menentukan sesebuah kerajaan di Malaysia,” tegas Fuziah.

Short URL: http://www.keadilandaily.com/?p=37668

Saham Lynas Merudum Selepas Keputusan Mahkamah Kuantan


October 11, 2012

Kilang Lynas di Gebeng, Kuantan, 270 km dari Kuala Lumpur, April 19, 2012. — Gambar fail Reuters

MELBOURNE, 11 Okt — Saham pelombong bumi nadir, Lynas, merudum selepas satu mahkamah Malaysia melewatkan permulaan pengeluaran di kilangnya dekat Kuantan, Malaysia, bagi menimbangkan satu permohonan oleh penentang projek itu.

Lynas telah merancang untuk memulakan operasi di kilang pemprosesan bumi nadir pada bulan ini, berikutan kekecohan yang berpanjangan tetapi kini perlu menunggu sehingga November, selepas Mahkamah Tinggi Kuantan melanjutkan penangguhan sementara terhadap lesennya, kata Australian Associated Press.

Aktivis Alam Sekitar dan penduduk tempatan menentang kilang itu berasaskan dakwaan bahawa ia akan mengeluarkan pencemaran radioaktif yang akan meresap ke dalam tanah dan air.

Saham Lynas merudum 14 sen atau 16.3 peratus dan kali terakhir diniagakan turun 72 sen.

Lembaga Pelesenan Tenaga Atom Malaysia telah memberikan satu lessen beroperasi sementara kepada Lynas pada bulan lepas.

Bagaimana pun, kumpulan penentang “Selamatkan Malaysia Hentikan Lynas” cuba mendapatkan semakan perundangan terhadap keputusan itu.

Mahkamah Tinggi Kuantan akan memutuskan sama ada akan menggantung permit operasi berkenaan, yang bergantung kepada semakan perundangan pada 8 Nov.

Kilang yang dirancang di Malaysia itu akan menjadi kilang bumi nadir terbesar di luar China. — Bernama


Lynas Shares Dive On Kuantan Plant Delay

The Malaysian Insider
October 11, 2012

File photo of workers standing on scaffolds inside the Lynas factory in Gebeng, Kuantan. — Reuters pic

MELBOURNE, Oct 11 — Shares in Lynas Corp Ltd plunged 19 per cent today as it faced another delay in opening its rare earth plant in Malaysia, raising the prospect the company may need to shore up its funding with a share sale. 

A Malaysian court extended a hold on the Australian company’s operating licence to November 8 yesterday while it decides whether to consider a review aimed at permanently blocking production at the US$800 million (RM2.5 billion) plant in Kuantan.

Lynas received the temporary operating licence in September for the rare earth plant, the biggest outside China. It had aimed to start production this month, processing material from its Mt Weld mine in Western Australia, but said yesterday that would be delayed and gave no new timetable for the opening.

Its shares fell to a six-week low of A$0.69 in early trade and last traded down 16 per cent at A$0.72, reflecting worries that the company will need to raise equity to shore up its funds the longer the delay runs.

“Given the current delays, we believe the core tenet for our argument to sell Lynas is still applicable — namely risks surrounding funding, dilution, commission and waste disposal solution,” Foster Stockbroking said in a note to clients today.

Foster estimated the company, which had A$124 million (RM393 million) in unrestricted cash as of June 30, would have only A$20 million in working capital available if the plant starts operating in November, and said it would probably need to raise funds through a sale of new shares.

Lynas had A$205 million in total cash at June 30, but A$81 million of this can only be used for a future expansion of the plant.

Activists linked to the environmental group Save Malaysia Stop Lynas want the court to suspend the licence until two judicial review cases challenging the government’s decision allowing the plant to operate are heard.

Lynas had hoped to open the plant a year ago, but has been delayed by community protests.

The company says that its plant is safe and is not comparable to a rare earth plant in Malaysia that was shut by a unit of Mitsubishi Chemicals in 1992, after residents there blamed the plant for birth defects and a high rate of leukaemia cases. — Reuters