KUALA LUMPUR, March 27 — Rare-earth miner Lynas Corp has rejected US$1.1 billion (RM4.08 billion) takeover bid by Wesfarmers, an Australian retail-to-chemicals corporation.

The Lynas board said it will not engage on the "highly conditional indicative proposal” from Wesfarmers, UK-based business daily Financial Times reported this morning.

"Lynas is a unique company and its value is derived from its strong, irreplaceable assets,” the board said.

"Wesfarmers’ bid comes at a tumultuous time for Lynas, which is embroiled in regulatory dispute with authorities in Malaysia, which is the location of the company’s A$1 billion (RM2.88) rare-earths processing plant,” it added.

According to US economics magazine Forbes, one condition of Wesfarmers bid yesterday was that relevant operating licences in Malaysia remain in place for a satisfactory period after the transaction.

On March 6 this year, Lynas was reportedly facing challenges in clearing waste stockpile from its Advanced Material Plant (LAMP) facility by September 2, when its licence is due for renewal.