Australian conglomerate Wesfarmers has made a surprise and unsolicited bid of around $1.1 billion to buy Malaysian rare earths mining company Lynas.

The takeover would give Wesfarmers access to the only non-Chinese producer of rare earths, which are used in a variety of applications including automotive catalysts, consumer electronics, communications and clean energy, among many others.

“An investment in Lynas leverages our unique assets and capabilities, including in chemical processing, and will deliver Lynas’ shareholders with an attractive premium and certain cash return,” said Wesfarmers managing director Rob Scott.

The proposed bid comes with conditions, including one that stands out from the usual requirements, notably that Lynas “ensures relevant operating licences in Malaysia are in force and will remain in force for a satisfactory period following completion of the transaction.”

Wesfarmers’ concern addresses  permitting issues and waste storage problems at a Lynas plant on the Gebeng Industrial Estate near Kuantan. According to Bloomberg news agency, the company’s license is due for renewal in September, and Malaysian authorities have said they will only renew if the company first exports its existing waste stockpile of around 450,000 t of iron phosphogypsum. The material is hard to recycle because it contains traces of radioactive thorium and uranium.

Commenting on Wesfarmers’ bid, Australian broker investment group CLSA told Reuters news agency that rival bids may emerge from Japanese or international trading houses given Lynas’ role in a niche commodity market. “The price is far too low and other bidders will likely pay more for it,” said CLSA analyst Dylan Kelly.

Lynas chairman Mike Harding said his company is assessing Wesfarmers’ proposal and will release further information as soon as possible.

Headquartered in Perth, Western Australia, Wesfarmers has interests in retail, chemicals, fertilizers and energy, as well as industrial and safety products.