Rare earths miner Lynas has moved to reassure shareholders after Malaysia announced new environmental conditions will apply to the Australian company's bid to renew its operating licence.
Malaysian Prime Minister Mahathir Mohamad said on Friday parties interested in buying Lynas had agreed to extract radioactive waste from raw materials before they are imported to the Lynas processing plant in Malaysia.
Lynas told the ASX it was seeking clarification from Malaysia, but that it was open to processing materials closer to its Australian mine.
"We see value in operating alternative cracking and leaching processing close to our resource," the company said in a statement.
"We will provide a further update on our plans and progress in the coming weeks."
Lynas, the only proven producer of rare earths outside China, rejected a $1.5 billion takeover bid from Wesfarmers last month.
In a televised media briefing after a cabinet meeting on Friday, Dr Mahathir said other companies could be interested in Lynas.
Dr Mahathir did not name the interested companies.
On Monday Lynas said its Japanese lenders, Japan Australia Rare Earths, had affirmed their support for the company and the management team.
Lynas shares were last trading at $2.11, up nearly 30 per cent since the Wesfarmers bid but still down from $2.45 a year ago.
