LYNAS PICKS MALAYSIA OVER HIGH-COST AUSTRALIA, SAYS MOORE

PERTH, Sept 9 (Bernama) -- Minister of Mines and Petroleum of Western
Australia Norman Moore said he could understand that Lynas Corporation Ltd had
its own reasons for having its rare earth processing plant in Malaysia as
Australia itself was a high-cost country in terms of manufacturing and
downstream processing.

Although a lot of mining activities are being carried out in Australia, most
of its minerals are exported, with very little processing done in the
country, he told reporters at his office in Perth, Western Australia, recently.

Lynas is currently building a RM700 million (US$1=RM2.98) rare earth
processing plant in Gebeng, Kuantan, which will use raw materials from Mount
Weld, Western Australia, to produce rare earth products.

As much as Moore would like to see the processing done in Australia, he said
his government had to respect the fact that Lynas had chosen Malaysia for
commercial reasons.

"The company make their own judgment to suit their circumstances,
financially and economically. We understand they are developing a mine here
(West Australia) to provide employment and make West Australia a part of the
market for rare earth that we are keen to be part of.

"However, the company has decided for economic reasons that processing
should take place in Malaysia and that is a good thing for Malaysia," he added.

Currently, China is reportedly the biggest producer of rare earth, with
Japan as one of its biggest market as rare earth is a crucial element in the
making of high-tech electronics products.

Meanwhile, Mount Weld has the richest deposits of rare earth outside
China, and Western Australia too had a whole range of other minerals, including
huge deposits of iron ore, nickel, tin, lead, copper and also gold.

Moore, however, said there had been very little processing within Australia
although there were minerals.

"We would like to see that change but Australia is a high-cost country in
terms of manufacturing and downstream processing and so we would find it very
hard to compete, for example, with China in terms of making steel with our iron
ore and so we exported them to other countries," he added.

Meanwhile, Lynas executive chairman Nicholas Curtis has been reported to
have said that Malaysia was a good place to invest and that Gebeng had the
necessary infrastructure for heavy industries.

"As we are in a global business, we chose Malaysia because the
infrastructure is better developed and the regulations are very clear," he had
said.

-- BERNAMA