UPDATE 1.20pm: Shares in rare earths miner Lynas fell by more 7 per cent after Malaysian activists continued legal action against the company's controversial processing plant.

The Kuantan High Court last week ruled against Malaysian activists who were trying to stop Lynas from processing rare earths on the country's east coast.

Lynas was granted a temporary operating licence for its advanced materials plant in September, but local activists sought a judicial review of that approval.

Lynas said the activists had appealed to the Malaysian High Court, still seeking an interim stay on the temporary operating licence.

Lynas shares closed down five cents, or 7.63 per cent, at 60.5 cents.

The shares had risen to 80 cents after last week's judgment.

Despite the continued legal action, Lynas said the judgment in the Kuantan High Court was very clear in its finding in favour of the company.