The world's largest rare earths processing plant, located in Gebeng near Kuantan, has begun producing finished products, its Australian owner said today, reports dpa .

Lynas Corporation Ltd began operating its facility last November despite environmental protests over health concerns.

Rare earths metals are vital components in the manufacture of high- technology products such as smart phones, hybrid cars and wind turbines.

NONE In a statement, Lynas Corporation said it is pleased to confirm that the Lynas Advanced Material Plant (Lamp) in Malaysia has produced its first rare earths products for customers.

Lynas announced on Jan 7, 2013 the successful commissioning of the cracking and leaching rare earth extraction units at the Lamp.

The recovery rates from the cracking units continue to be high (that is, in excess of 90 percent of the contained rare earth oxides or REO), the company added.

"Following commissioning of the cracking and leaching circuits, the company has been working through early stage production issues that are typical for any start up of a new plant.

"Our focus is on increasing throughput and optimising use of equipment. These issues have not materially impacted on the overall production ramp-up schedule," the statement read.

Lynas said it expects to process up to 22,000 tonnes of rare earths ore annually, or about 20 percent of the world market, at its Kuantan facility.

It hopes to generate some RM8 billion (US$2.66 billion) annually from its operations.

A Malaysian court is still hearing a petition to revoke the operating licence, which Lynas and the national authorities say meets all domestic and international standards.