Shares in rare earths miner Lynas tumbled after a Malaysian court delayed the start of production at its plant near Kuantan to consider an application by opponents of the project.

azlan Lynas had planned to finally begin operations at the rare earths processing plant this month, following a long saga, but will now have to wait until November, after the Kuantan High Court extended an interim stay on the licence, the Australian Associated Press said.

Environmental activists and local residents opposed the plant on the grounds that it will produce radioactive pollution that will seep into the ground and water.

Lynas shares plunged 14 cents, or 16.3 percent and was last traded down at 72 cents.

Malaysia’s Atomic Energy Licensing Board awarded a temporary operating licence to Lynas last month.

However, the Save Malaysia Stop Lynas opposition group is seeking a judicial review of that decision.

The Kuantan High Court will decide whether to suspend the operating permit pending a judicial review on Nov 8.

The planned plant in Malaysia would be the biggest rare earths plant outside China.    

- Bernama