KUALA LUMPUR, Feb 1: Malaysia has conditionally approved a pre-operating licence for a $200 million rare earths processing plant being built by Australia’s Lynas Corp, the country’s atomic energy licensing board and the Ministry of Science said on Wednesday.

The approval eases uncertainty for the Australian firm and its investors after speculation that Malaysian authorities were considering rejecting the licence over environmental concerns ahead of national elections expected within months. The Malaysian plant will process rare earths mined in Australia at Lynas’ Mount Weld project. The operation is considered to be a key to breaking China’s grip on the supply of rare earths metals, crucial in several green products such as hybrid cars.—Reuters