Political and Construction Holdups for Malaysia Rare Earths Plant

China has limited exports of so-called rare earth elements for years, frustrating foreign trade partners who want to access the metals used to make everything from cell phones to weapons systems.  

Michael Bryant submits:Unrest in the Middle East, the European debt crisis and the rising global economy will put pressure on commodity prices. Rare earth stocks, vanadium miners and related Chinese miners have been in a correction since their run up late last year. Molycorp (MCP) fell from $62 to $45 earlier this month and is now at $53. Rare Earth Recourses (

A team of UN atomic energy experts began a week-long visit to Malaysia on Sunday to review the safety of a proposed Australian rare earths refinery that has drawn protests.Following public concerns that radioactive waste from the plant could leak out and harm the environment, Malaysia has put the project by Australian miner Lynas on hold, pending the independent panel's review.

Malaysia's government is defending its decision to allow Australian miner Lynas to refine rare earths, after a challenge from environmental activists.

KUALA LUMPUR, Malaysia (AP) -- Australian miner Lynas Corp. says it has secured the Malaysian government's approval to fire up a controversial rare earths plant....

Australian rare earths miner Lynas has launched legal action against the most vitriolic opponents of its proposed plant in Malaysia following fierce criticism that it is unsafe.Lynas plans to start production soon in eastern Pahang state to process rare earths imported from Australia, effectively breaking the Chinese stranglehold on the materials.But the plant has been hugely controversial with fears it will harm the environment by producing radioactive pollution.

A Malaysian court has dismissed a bid to stop a rare earths plant run by Australian miner Lynas from going online over fears it will harm the environment by producing radioactive pollution.The Kuala Lumpur High Court on Thursday declined to hear a challenge against the plant, which is due to start production soon in eastern Pahang state.Lynas intends to process rare earths -- elements used in such products as smart phones, wind turbines and missiles -- imported from Australia.

Article written by Prieur du Plessis, editor of the Investment Postcards from Cape Town blog.Gold, silver and rare earths are three markets being widely followed at the moment. I am bullish on all three, but only a buyer on pullbacks. Notwithstanding the prospect of somewhat slower economic growth over the next few months, China and a number of other Asian countries will keep buying gold and silver. These purchases should provide a floor to price declines – an “Asian put” so to speak.