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Lynas put the plant on ice on March 23 to comply with the government's initial two-week movement control order put in place to stop the spread of COVID-19.
Under the MCO all schools and non-essential businesses across Malaysia were closed with some COVID-19 hotspots around the country subject to even tighter travel restrictions.
The government has extended the order until April 28 and added more categories of exemption, which Lynas believes it qualifies for.
Lynas has applied for approval to operate and is awaiting the government's decision.
The company told the Australia Securities Exchange the products produced at the Kuantan plant were essential to manufacturing supply chains for critical industries in Malaysia, including automotive, oil refining and machinery and equipment, and medical devices such as ventilators.