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The plant at the Gebeng Industrial Estate on Malaysia's east coast has been shuttered since the Malaysian government first implemented the Movement Control Order on March 18, which was meant to stay in place until May 12.
The country's government announced on May 1 that most economic sectors including manufacturing would be allowed to restart operations from May 4 if they complied with strict health and hygiene practices.
Cinemas, karaoke lounges and Ramadan bazaars will remain shut, however.
While restrictions were expected to last until May 12 Lynas had applied for an exemption to reopen early, which was pending at the time.
Lynas told the Australian Securities Exchange it was ready to reopen, with operations to be guided by health and hygiene requirements, global economic activity, customer demand and any ongoing restrictions on suppliers.
The plant will restart at 70% capacity, with Lynas confident the rate would allow for the refilling of supply chains and restocking depleted inventories.
Lynas' Mt Weld operations are continuing albeit at reduced staffing levels.