Shares in Lynas Corporation have surged by more than 50 percent in early trade after the rare earths miner was granted a temporary licence for its US$800 million (RM2.5 billion) rare earths refinery in Kuantan.

After the close of yesterday’s trading session, the company said the Malaysian Atomic Energy Licensing Board had issued a temporary operating licence (TOL) for its advanced materials plant in Kuantan.

At 10.40am (Melbourne time) today, Lynas shares were 50 percent higher at 91 Australian cents before dropping back to 78 cents at 11.10am, the Australian Associated Press reports.

The long-delayed plant has been opposed by environmentalists concerned about potential radioactivity risks.

The plant will process rare earths from the Lynas Mount Weld mine in Western Australia.

China currently produces about 95 percent of all rare earth materials, which are vital for many electronic products.

- Bernama