The Lynas Corporation Ltd (ASX: LYC) share price is one to watch today after an update on a Malaysian disposal facility.
What did Lynas announce yesterday?
The Aussie rare earths miner provided an update on its permanent disposal facility (PDF) in Malaysia. The State Government of Pahang has approved a site for Lynas' water leach purification (WLP) plant in a remote area of Pahang State.
Lynas reports that, based on preliminary due diligence, it expects the site will be a suitable location for the PDF.
The Lynas share price will be on watch this morning after the latest step forward for the ASX 200 miner. This comes amid tensions with the Malaysian Government over Lynas' waste disposal of radioactive materials.
Lynas was informed in December 2018 that it must construct a PDF facility if it was to continue operating in the country.
Who will build the new PDF facility?
Lynas has appointed Gading Senggara Sdn Bhd (HGSSB) as a contractor to manage the entire PDF project. GSSB is part of a conglomerate operating across several industries including aerospace, defence, maritime, oil and gas and development and construction.
The ASX 200 mining group expects to pay GSSB US$98 million for managing the entire PDF project. I'd be keeping an eye on the Lynas share price this morning as investors process what these new costs mean for the group's valuation.
How has the Lynas share price performed recently?
The $1.50 billion miner has had a good 12-month period on the ASX. The Lynas share price rocketed higher in March 2019 after receiving an unsolicited takeover bid from Wesfarmers Ltd (ASX: WES).
Even though the takeover was rejected, the group's shares are still up 27.98% in the last 12 months. If you stretch that out to a 5-year timeline, the Lynas share price has gained 377.78% since 6 Feb 2015.
The group's shares also jumped in December after announcing it would tender for a United States Army rare earths facility for weapons production.
All eyes will be on the group's shares when the market opens today as investors react to the latest update.
