Lynas Corporation - Rare Earths Radiation Concerns in Malaysia - ASX

Lynas Corporation - ASX - COT Proxy

This will be the first time I am covering stocks on the Australian Stock Exchange (ASX). How could I have not covered them all this while?

Let's take a look at Lynas Corporation. This is an interesting company. Just a little background, this is actually a mine to market integrated rare earths mining company in Australia. Their mine is in Mount Weld, Western Australia. Their processing plant where they refine the rare earths deposits is in Gebeng, Kuantan - Malaysia.

The locals and opposition parties are rallying (they call themselves the "Green Movement") against the plant which is also called the Advanced Materials Processing Plant because of the emission of radiation into the environment. The plant promises to be one of the biggest plants in the world to process rare earths outside of China. This will serve to break the monopoly of the Chinese for these rare earths.

The commercials aka big boys are net short since 17 September 2011. Probably they knew that the project will meet some kind of stiff resistance hence the short.