Australian rare earth miner Lynas has described its first production earnings from the controversial plant in Gebeng, Pahang as “disappointing”.

The Autralian News Network reported that Lynas only managed to sell its rare earths for about A$5 per kilogram, at a loss of about A$15 per kilogram, due to weak global demand.

NONE It also reported that Lynas sold only 117 tonnes of the refined rare earths, far behind its first phase target of 11,000 tonnes for the year, due to equipment and processing issues.

Recognising the “slow start”, Lynas CEO Eric Noyez however, reportedly said that he expects prices to improve.

“We are confident we have identified the right solutions to enable us to increase production over the coming quarter,” he was quoted as saying.

Resident groups of Gebeng and Kuantan have been embroiled in a prolonged fight against the plant, which it claims will pollute the environment and endanger their lives.

Lynas, however, insists that the plant will not pose a health risk, and has submitted plans for a permanent disposal facility to the government for review.