Seeking Alpha


Send Message
View as an RSS Feed
View Flann's Comments BY TICKER:
Latest  |  Highest rated
  • Why Rare Earth Prices Are Poised To Rebound And Who Stands To Benefit [View article]
    Another comment section, another use of "watermelon" to denigrate SMSL (or do you want to explain what you mean by "watermelon rhetoric"?).

    Regardless of the safety of LAMP, institutional arrogance on the part of Lynas (and continual foot in mouth disease) has generated a degree of dislike and distrust that will never dissipate. It will remain a country of people trying to close a plant they fear and distrust, and a corrupt government weighing the pain of keeping LAMP open vs. the pain of shutting LMP down.

    An audit by a group hired by Lynas is not going to sway a single Malaysian at this point. Not when they remember the 1-person for 1-hour public review of the LAMP plans. Not when they waited 10 months for a PDF, and then got nothing.
    Dec 11, 2013. 10:37 AM | Likes Like |Link to Comment
  • Molycorp: Misconceptions And Reflexivity Present Opportunity [View article]
    Watermelon website? Explain.
    Nov 30, 2013. 03:25 PM | Likes Like |Link to Comment
  • Molycorp: Misconceptions And Reflexivity Present Opportunity [View article]
    If you go to SMSL, you will at least understand my basic point: MCP is working in a friendly environment (despite being in a location with more stringent environmental requirements) and that looks to continue into the future. Meanwhile, Lynas is raising protests, continually, and into the future, in 3 countries. Because of their debt/obligations for output, Lynas can't stop. Theyy can only ride this train on this track, while 1.2 million Malaysiants (so far) throw ebris onthe tracks.
    Nov 30, 2013. 02:11 PM | Likes Like |Link to Comment
  • Molycorp: Misconceptions And Reflexivity Present Opportunity [View article]

    "Section 11 of the law allows the minister to direct regulators toward certain policies and so there's massive conflict of interest," said Dr Peter Karamoskos, an Australian nuclear radiologist.
    "It doesn't promote independence of a regulatory body when their boss, a minister, says that the plant is as safe as a soy sauce factory," Karamoskos added.

    In September, Deputy Science Technology and Innovation Minister Datuk Abu Bakar Mohamad Diah had said after visiting the Gebeng plant that he found "the Lynas factory is as safe as a kicap (soy sauce) factory".

    Karamoskos said that recommendations by the International Atomic Energy Agency (IAEA) on disposal of waste in a facility was "clearly not followed in Malaysia" and although Lynas has been doing poorly financially, the law requires for companies to have funds to conduct cleanup operations before it can set up shop.
    Nov 30, 2013. 02:06 PM | 1 Like Like |Link to Comment
  • Molycorp: Misconceptions And Reflexivity Present Opportunity [View article]
    Details from SMSL on radiation concerns (I know, A, it's as safe as soysauce):

    The mining company's refinery near Kuantan, Pahang, has several problems, which experts said in the event of an accident or carelessness, could harm to residents near the factory.
    "The factory has limited storage capacity and the waste is stored in a poor liner system," said Dr Gerhard Schmidt, a chemist from the Oeko Institute in Germany.
    Schmidt explained that the institute's report on the refinery published earlier this year showed that Lynas is using single layer high density polyethylene (HDPE) lining to hold the water leach purification, the by-products of mining industries, in storage.
    Meanwhile, its report stated that the "state of the art design would use 2.5mm HDPE and at least two 25cm layers of clay". The factory was found to use 1mm HDPE and a single 30cm layer of clay.
    "One layer isn't sufficient since these sheets have to be welded on the spot and if its thickness is insufficient or if the sheet was not welded properly, leaks can occur," Schmidt said in the event hosted by Pertubuhan Solidariti Hijau Kuantan (PSHK), an NGO protesting the factory's operations.
    "I thought after publishing the report Lynas had addressed the four recommendations proposed by the institute but it turned out to be otherwise," he added.
    Concerns about Lynas’s disposal of radioactive materials began in 2011 after residents feared that its refinery plant in Gebeng would affect some 700,000 people living within less than a 30km radius of the facility.
    According to earlier reports, the Gebeng refinery known as Lynas Advanced Materials Plant (LAMP) produces a by-product known as Thorium (Th), a radioactive element that causes cancer and is easily transported through wind and water.
    Worried over the danger of leakages, environmental lawyer Theivanai Amarthalingam said that the scientist's concern should be given due diligence before an accident occurs.
    "There's no guarantee that a storage facility can be kept safe for a hundred or a thousand years," she said.
    Experts present pointed out that Lynas has been able to conduct its operations without proper check and balance due to regulatory flaws within the Atomic Energy Licensing Act 1984 and the lack of willpower by enforcement agencies to independently do its job.
    "The Act is not up to international standards and it doesn't take into account aspects of rare earth plants, disposal and safety measures," said Theivanai.
    The Act was last amended in 2006, before Lynas began operations this February.
    "Section 11 of the law allows the minister to direct regulators toward certain policies and
    Nov 30, 2013. 02:04 PM | 1 Like Like |Link to Comment
  • Molycorp: Misconceptions And Reflexivity Present Opportunity [View article]
    From SMSL blog. Reporting on Conference on LAMP issues:

    If Lynas is serious about its corporate social responsibility and to live up to its ‘green’ image, the findings and recommendations of the Oeko evaluation report should have prompted the Australian company to change or at least initiate the following:
    • a completely new waste management concept to comply with international best practice,
    • build new interim storages for their wastes with a really thick liner underneath to prevent leaks,
    • a site for a Permanent Disposal Facility (PDF) with excellent isolation conditions and nominated in consent with the then-affected communities,
    • an additional cleaning stage for acids in their off-gas treatment stage added.

    Mr Schmidt remarked, “To my disappointment Lynas has not done that and the Malaysian Government has not acted in its duty of care to make Lynas do that in the interest of its citizens and the environment and for the country’s long-term well beings.”

    Mr Tan Bun Teet from SMSL concluded “Our government kept claiming that the Lynas plant is scientifically safe. This is why we have sought scientific input from credible and independent scientists and professionals who can provide us with their opinion and views without prejudice, fear or favour. We will continue to campaign on the Lynas issue to build a safer Malaysia. This is just another step we have taken.”
    Nov 30, 2013. 02:00 PM | 1 Like Like |Link to Comment
  • Molycorp: Misconceptions And Reflexivity Present Opportunity [View article]
    On Yahoo boards, I made clear that info was from SMSL blog. I should have written that extra sentence here, as well (It was 4 a.m., sue me; of wait, you want to!). My intention, in both places, was to SHOW what was on SMSL blogs. And on Yahoo MCP boards, you'll see I went the extra step of saying, "Now copy anything from this into Google and you will arrive at SMSL blog." Which is where I want people to go. I was never pretending to report from conference in Malaysia. I want investors to know the situation in Malaysia.

    Because what I posted above is just one small portion of one entry.

    Re your long points, above:

    Everyone know Lynas's plans to add waste to gypsum to reduce radioactivity to sellable levels and sell. But they also don't believe it will work flawlessly. The plant is limping to full capacity, so that by the time they get to TOL date, they may have never operated at 11,000 mt, never mind 22,000. They will not have shown they can process, move, and sell waste. And there will have never been a PDF in place, because they never came up with one, because the no other country will take, and another area of Malaysia added to protest will be evern more disastrous.

    SMSL's argument is that LAMP's inadequate holding facilities for waste (too thin, too few layers) - wait, why paraphrase, when I can just cut and paste from SMSL (see below).

    And no one trusts the AELB.

    And arguing, why not protest these plants, is totally beisde the point. But you know that Mitsubishi had a rare earths plant and children develped leukemia and died, and the comnpany left it to Malaysia to clean up (after spending a lot of money, they left).

    And what MCP did in the past is irrelevant (yes, even after you copied that info). In fact, it shows how on top of their game they are now. They spent the money and time to make it a non-issue. (Your boy, JL, makes the point in these comments that he told MCP to not spend thier time/money on upgrades, and then amazingly implies LAMP is safer). MCP even has a desert tortoise fellow, whose activities you can follow on their site. Anyone who was worried about the tortoises can rest easy.

    If you read the SMSL site, and the recommendations made on conference this week, you'd see they are not even asking LAMP to close, but to make fixes they have ben asking for for two years. Fixes that MCP does not require. It's about making it safe, not about political motivations.
    Nov 30, 2013. 01:57 PM | 1 Like Like |Link to Comment
  • Molycorp: Misconceptions And Reflexivity Present Opportunity [View article]
    Yes, one of the world's great injustices: concerned citizens of the second and third world requesting that their government be transparent about the intentions (for example, the premenant disposal facility plans) of a first-world miner.

    What concerns Malaysians isn't the levels of radiation in per particle of thorium but rather the levels to be found in the CONCENTRATION of the huge amounts of thorium left behind. Lynas has yet to disclose to the people of Malaysia concerning their detailed waste-management plans for LAMP. Where will the solid waste containing thorium be stored? What is the storage method? Who is going to manage and monitor the waste? These are questions that the Malaysian people want asnwers to. Until this very moment, the Detailed Environment Impact Assesment (DEIA) has yet to be published on the internet for public viewing and the state and government-controlled medias have not been fully transparent about the operational hazards of LAMP.

    Note: Lynas has barely produced anything thus far (sales of 600 mt). And SMSL has requested monitoring results during this year and have not received. They also just requested a tour of facilities and were denied.

    And regardless of the actual safety issues, Lynas has created an atmosphere of extreme distrust: 1.2 million Malaysians signed a petition vs. Lynas this fall and 0.00 million signed a petition vs. MCP.

    Malaysian activists have vowed to absolutely bring LAMP to a halt by next July.

    Whether they do is in question. However, whether Lynas will have host-related issues is not in question. It is a fact.
    Nov 29, 2013. 08:29 PM | 1 Like Like |Link to Comment
  • Molycorp: Misconceptions And Reflexivity Present Opportunity [View article]
    Expensive Toxic Legacy in the Making

    Gerhard Schmidt, a Senior Scientist and a toxic and radioactive waste expert from the Oeko Institute in Germany has done a thorough analysis and evaluation of Lynas’ waste and pollution blue print. He said.

    “In Europe, past mistakes have costed the public a lot of money to clean up decades later till today, not counting the health care costs that might have resulted from the hazards. The Malaysian Government should take the scientific advice to require Lynas to manage its waste and pollution to international best practice standards and not to leave another expensive toxic legacy.”

    SMSL has requested for meetings with the two regulators – the Atomic Energy Licensing Board (AELB) and the Department of Environment (DoE) as well as for a plant visit at the Lynas plant whilst our experts are around. The government did not respond and Lynas wanted the visit to happen in December, by which time the experts are gone.

    Dr Peter Karamoskos, a nuclear medicine physician and radiologist and the public representative on the Radiation Health Committee of the Australian Radiation Protection and Nuclear Safety Agency (ARPANSA) explained to the audience how international radiation safety standards are set and promoted. He commented, “The International Atomic Energy Agency (IAEA) acknowledges that radioactive waste poses a threat to human health and therefore must be managed properly in a scientifically sound manner. We cannot determine if a project is safe until there is transparency both at the company and the governmental levels. In the case of Lynas, the lack of transparency is a major problem. Malaysia really has to make sure its regulation is implemented to prevent any runaway risk to the public for many generations to come.”

    Why all the fuss? Jack spent a couple of hours and announced it safe. Everyone, relax...
    Nov 28, 2013. 01:19 AM | Likes Like |Link to Comment
  • Molycorp: Misconceptions And Reflexivity Present Opportunity [View article]
    For those in opposition to a stock: If large stakeholders don't continue to buy, it's an idictment; if they buy, it's a pump that means little, since they hold so much already or have made so much in the past.

    Useless digression begun by JL.

    More useful is when did they stop selling? How far above the current price is that? Also, what institutions and respected investors are coming in or adding on?

    Most importantly: what is the current price and what are the prospects (which is what you addressed in your article above).
    Nov 24, 2013. 03:31 PM | Likes Like |Link to Comment
  • Molycorp: Misconceptions And Reflexivity Present Opportunity [View article]
    It is one business, and as CK explained in the last CC: there are numerous calculations every day regarding amounts processed, elements processed, where elements are moved, etc. MCP will do nothing that costs them money. If the company, as a whole makes more money, purchasing today in China, they'll do that. If it makes more sense to ship, they'll do that. As we've just seen: had they been part of MCP, they would have kept minimal inventories during bubble, knowing that they had a sure source, if needed. Then over the past two years, while other product producers were using high priced inventory, MCP/Neo would've had low cost inventories.

    Again, it will be far, far easier/quicker/cheaper for MCP to purchase a resource and get into production than for a resource to create processing.

    And in the future, there might be quartes where sales of REO's carries the company and quarters where various portions of the downstream products carry the company and quarters when the new products that R&D departments are creating (Sorbx drinking water application that K said was getting remarkable results in testing) carry the company.
    Nov 19, 2013. 03:30 PM | Likes Like |Link to Comment
  • Molycorp: Misconceptions And Reflexivity Present Opportunity [View article]
    - pardon: formerly part of Neo [acquired by MCP]. With it, comes the know-how to create and run an HREE processor outside of China.

    Another barrier for other Western companies: lack of experience / knowledge/ IP / products / experienced R&D departments (MCP has incorporated 2 acquired R&D departments, Silmet and Neo).
    Nov 19, 2013. 02:58 AM | Likes Like |Link to Comment
  • Molycorp: Misconceptions And Reflexivity Present Opportunity [View article]
    HREE Concentration Plant is, of course, at Mountain Pass (there are photos, if you want to look). HREE processing (separation of elements in HREE concentrate shipped from Mountain Pass) is performed at the facility in Tianjin, China (formerly part of the Neo deal).
    Nov 19, 2013. 12:00 AM | Likes Like |Link to Comment
  • Molycorp: Misconceptions And Reflexivity Present Opportunity [View article]
    MP is a bastanite mine (higher percentage of LREEs). MCP, however, built a plant that could process bastanite or monazite deposits. They also built a HREE concentration plant. And (wait for it) they bought up all of the available HREE processing. Read up on your rare earths and see if it is like farming. What you'll discover is that there is a huge barrier to entry in the initial processing. MCP has the best processing plant in the world; its complementary HREE procesing purchased over the past few year is part of their business plan. Resources are much cheaper and much easier to purchase than processing plants are to build.
    Nov 18, 2013. 01:42 PM | Likes Like |Link to Comment
  • Molycorp: Misconceptions And Reflexivity Present Opportunity [View article]
    The monopoly is processing. Every asset MCP bought would be a boon to a developing junior. They bought all of the available processing. Strategic. It may not be apparent to you today, but watch the story develop over a decade, and let's meet back here. Processing capacity will have made MCP.
    Nov 18, 2013. 09:59 AM | Likes Like |Link to Comment