Australia's Lynas to upgrade Malaysian rare earth refinery amid dispute over operating license

KUALA LUMPUR, Malaysia (AP) — Australian miner Lynas Rare Earths said Friday that it will temporarily shut down most of its operations in Malaysia for upgrading as it deals with a legal battle with the Malaysian government over its operating license. 

Lynas said in a report to investors that a Malaysian court is set to hear in November its application for a stay to allow it keep operating while other administrative and legal appeals are being heard. It didn't give an exact date. 

The Lynas refinery in Malaysia, its first outside China producing minerals that are crucial to high-tech manufacturing, has been operating in central Pahang state since 2012. But it has been locked in a battle over concerns about radiation from waste accumulating at its plant. 

Lynas's operating license was extended by six months until Dec. 31. To again renew its license, Lynas must move its cracking and leaching processes — which produce the radioactive waste from Australian ore — out of Malaysia. It also is not allowed to import raw material with radioactive elements into the country.