Malaysia To Produce Lanthanide, A Material Used In Hybrid Vehicles

SYDNEY, Aug 4 (Bernama) -- Lynas Corporation Ltd, which mines rare metals, is in the last leg of getting approval to open up a plant to produce a series of metallic elements commonly known as Lanthanide in Malaysia, said its executive chairman Nicholas Curtis.

Lanthanide has unique application in automotive catalytic converters, hybrid vehicles, and energy efficient compact fluorescent light bulbs.

With this, Rare Earths will have a pivotal role in reducing greenhouse gas.

The planned plant will make Malaysia the second producer of Lanthanide in the world after China.

The company has submitted applications to the Malaysian authorities to set up the plant in the Teluk Kalong Industrial Estate in Kemaman, said Curtis.

"We have received the preliminary Department of Environment's approval. We even have obtained approval from the local council and just need the final approval from Malaysia's atomic licensing body," he told Bernama in Sydney recently.

Asked whether the licensing body is concerned of the hazardous waste from the planned manufacturing facility, he said, "There is no concern from any licensing body that it has any hazard to anybody in Malaysia.

"We hope to start construction in September and complete it by December 2008."

The company plans to initially invest RM650 million in the proposed plant, which will be built on a 20-hectare piece of land.

"In the next stage we will invest another RM250 million," he said after a courtesy call on the Minister of International Trade and Industry Datuk Seri Rafidah Aziz in Sydney.

Rafidah is leading a trade and investment mission to Sydney, Brisbane and Perth.

Once production starts in 2009, the plant will have an annual production capacity of 10,500 tonnes worth US$150 million (US$1=RM3.46) that will be exported to Japan and Europe.

The Australian Stock Exchange-listed Lynas will create close to 400 jobs for skilled and semi-skilled workers.

"We are seeing now very strong demand for the products that we intend to produce," said Curtis.

The planned plant is the first for Lynas overseas as its current activity is only in mining of rare earths at Mt Weld located 35km south of Laverton in Western Australia.

He said Kemaman was chosen due to Malaysia's favourable investment climate, the high quality workforce and the excellent infrastructure in the country and Port of Kemaman's all weather deep water port facilities that can handle bulk shipment from Lynas's Mt Weld ore.

In addition, manufacturers of key substance required for the process (lime, sulfuric acid, and hydrochloric acid) are already established in close proximity.