KUALA LUMPUR: It would incur Lynas Corporation Ltd (Lynas) a cost of A$14 million (RM42 million) to take out the Water Leached Purification Residue (WLP) from Malaysia, said Energy, Technology, Science, Climate Change and Environment Minister, Yeo Bee Yin (pix).
She said based on the report by the Australian Financial Review last week, a major portion of the cost to export the residue, which is A$46 million (RM139 million) could be claimed via the insurance company of the rare earth mining company.
“Compared with the profits of the company for the year 2017-2018 which reached A$129 million (RM399 million), it represented only 10% of the profits of Lynas. If the calculation is accurate, it means 10% of the profits of Lynas from its operations last year is sufficient to send back the accumulated residue for six years of operations.
“More so, after the announcement of the pre-condition made by the ministry last week, share brokers such as UBS and CLSA still emphasised on the “buy” recommendation for Lynas shares. Share broker UBS had placed a target price for Lynas as high as A$3.10 (RM9), which is almost twice from their share price before the announcement was made,“ she said in her latest entry in her Facebook website.
The note was issued as an open letter to the workers of Lynas Malaysia, following the submission of the memorandum by 130 workers of Lynas, Pahang in front of the main gate to Parliament on Tuesday. — Bernama
