Lynas halts Malaysian operations on COVID-19 concerns
Rare earth miner Lynas Corporation (ASX:LYC) said today that it has temporarily ceased production at its Malaysian plant, in response to the Malaysian government’s recent announcements regarding the escalation of COVID-19 cases and tighter movement controls in Malaysia.
The tighter movement controls in Malaysia are currently scheduled to end on 31 March 2020.
The company said it supports the government's actions.
The company's operations in Australia, Mt. Weld, will continue to operate.
"As a responsible business, Lynas has taken steps to ensure the health and safety of our people and our communities and we support the government’s actions to control the outbreak. Accordingly, we have initiated a safe temporary shutdown of our plant into care and maintenance mode," said the company in a statement.
"We have taken actions to significantly reduce cash outgoings during the temporary shutdown. We will continue to pay all our staff during this time."
The company said its cash balance is A$111.8 million as of the end of December.
"Lynas currently expects to achieve positive cash flow from operations during the March quarter, before payment of approximately A$14 million relating to the Permanent Disposal Facility (PDF) project announced on 30 January 2020."