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MELBOURNE, Nov 30 AAP

November 30 2012, 1:39PM

Australian rare earths miner Lynas Corporation has finally begun production at its Malaysian processing plant following a recent court victory.

The company said in a statement that the first feed of rare earth concentrate had been fed into the kiln at the Lynas Advance Material Plant (LAMP) in Kuantan Malaysia.

The event follows controversy and delays due to strong opposition about possible health threats caused by pollution.

A Malaysian court recently dismissed an application by the Save Malaysia Stop Lynas group to block Lynas' operating licence, but the legal challenges are ongoing.

Lynas mines rare earths from the highly regarded Mt Weld in Western Australia, which are metallic elements used in products ranging from digital televisions, mp3 players and fluorescent light bulbs.

"This is a significant milestone for Lynas," said Lynas executive chairman Nicholas Curtis.

"The operation of the LAMP is now a reality, and the LAMP will provide real data that will assure people that the LAMP is entirely safe for our local communities and the environment."

It is expected to take about two months before first sales of finished product and cash generation.

Patersons Securities has a buy on the stock with a price target of $2.31 a share.

At 1218 AEDT, Lynas shares were up 1.5 cents to 69 cents.