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Lynas may face new legal threat
Lynas may face new legal threat

Lynas shareholders have a nervous wait to find out whether another legal challenge is set to delay the company's plans to begin operating a rare earths processing plant in Malaysia.

Lynas called a trading halt on its shares this morning in response to suggestions that the Save Malaysia Stop Lynas group had lodged second application to the Kuantan High Court to stop the company securing a temporary operating licence for the facility.

However the company said it appeared to be a repeat of the application that was dismissed last week.

On Thursday, the court denied an application by Save Malaysia Stop Lynas for an injunction against Lynas' temporary operating licence.

The group fears Lynas' plant will emit radioactive pollution posing a threat to human health and the environment.

On Friday, Lynas announced a $200 million capital raising for the final ramp-up and commissioning of the plant.

Lynas said it would update the market when it knew more.

Shares in the company last changed hands for 65.5 cents.