Lynas was attracted to Malaysia because it was offered tax free status for 10 years. Its first choice was a site in the state of Terangganu where it quickly received necessary construction approvals. Then the Malaysian government asked Lynas to move south to the Gebeng industrial estate which was built on a reclaimed swamp, 2.5 kilometres from the port of Kuantan in Pahang. Although the new land cost $30 million rather than $5 million, the company reported that it "had little choice but to accept this", and in any case the infrastructure at the new site was better as it was close to petrochemical plants. For its cooperation, Lynas's tax holiday, which included all imports and dividends, was topped up to 12 years. The company told the sharemarket that it would start producing rare earths by June 2009.