Rare earths supplier, Lynas Corporation Ltd’s Malaysian subsidiary, will spend up to US$210 million on the second phase of construction of the planned refinery plant in Kuantan, Pahang.
The Australian Associated Press (AAP) reported that Lynas Malaysia had signed a letter of award with Thai engineering company, Toyo-Thai Corporation, for the second phase of work on the Lynas advanced materials plant at the Gebeng
Industrial Estate in Kuantan.
The letter of award is for a fixed lump-sum price of between US$180 million and US$210 million.
Subject to the receipt of approvals, construction is scheduled for completion in the last three months of 2012.
Completion of the first phase of the advanced materials plant is expected by the end of the year, AAP said.
Earlier this month Lynas shares plunged because of media reports the plant could be delayed by one to two years.
Lynas denied the reports.
The company mines 15 metallic elements which are used in electronics, computers and many green electrical products.
The plant in Malaysia is being built to process ore concentrate from Lynas’s rare earths deposit at Mount Weld in Western Australia.