Antinuclear

Australia’s Lynas company’s problems – share price, governance, Malaysia protests

It is interesting to keep an eye on Australia’ s Lynas corporation.  For one thing, that devious old propaganda merchant, Ziggy Switkowski is on Lynas’ board of directors.  Wherever Ziggy is, spin will abound.

For another thing, Lynas is dedicated to make a mint out of rare earths processing in Malaysia.  (nothing wrong with the idea – after, making a mint is the correct mission for a corporation –  its only responsibility, unfortunately).

Still – the rare earths processing is fraught with danger. Both USA and China had to stop rare earths operations, due to very bad environmental pollution, though both are now starting again.  China got away with it  for ages, by putting the rare earths processing in a rural area, with an unsophisticated indigenous population.    But Malaysia – that is a different situation, with a much more educated and urban population, who don’t want the pollution risk.

And now – Lynas has a couple of other problems – its plummeting share price, and some questions about corporate governance

Corporate governance guidelines outlined by the Australian Securities Exchange recommend that ”the role of chair and chief should not be exercised by the same individual”.

Lynas is expected to report a full-year loss before tax of $57 million today as it ramps up towards production. Shares in Lynas closed 17.5¢, or 14 per cent, lower at $1.105 – more than 60 per cent off its April high of $2.70.

Lynas shareholders demand that chairman steps down, The Age, Philip Wen, September 23, 2011 A VOCAL group of retail shareholders in rare-earths miner Lynas is seeking to remove mining entrepreneur Nick Curtis as chairman, citing concerns over ”risks to corporate governance”.

September 23, 2011 - Posted by Christina Macpherson | business, rare earths, uranium, Western Australia