TOKYO, 31 May 2019:
Malaysia will allow Australia’s rare earth plant Lynas Corp to continue operating in the country, Tun Dr Mahathir Mohamad said yesterday.
The prime minister’s announcement ended uncertainties that bogged down the future of the US$800 million (RM3.35 bilion) Lynas plant in Gebeng, Pahang – following a temporary suspension of its operating licence renewal.
“Yes, we will renew the Lynas licence,” he said during a dialogue and media conference with the Japanese Foreign Correspondent Club (FCCJ) here.
Late last year, the Ministry of Energy, Science, Technology, Environment and Climate Change imposed two conditions for the renewal of the Lynas Advance Materials Plant (LAMP) licence – including sending radioactive waste materials from the country.
LAMP also needs to ensure the Water Leached Purification Residue (WLP) residue containing radioactive material is removed from Malaysia.
For non-radioactive scheduled Neutralisation Underflow Residue (NUF) waste disposal, LAMP must submit an action plan for disposal of accumulated waste before being considered for approval under Regulation 9 (6) and 9 (7), Environmental Quality (Scheduled Wastes) 2005.
Dr Mahathir said Malaysia had bad experiences involving radioactive waste and did not expect it would be a problem when Lynas was allowed to operate.
“When we invite Lynas to invest, we do not think there is any radioactive waste problem, otherwise, we have to discuss how to dispose of it (the waste). So, that there is no local effect.
“Lynas is allowed to continue operating because we do not want to lose big investments from Australia.”
Previously, Lynas Malaysia Sdn Bhd was reported to be optimistic the operating licence will be extended before the due date in September.
Chief executive officer Amanda Lacaze said this was because Lynas had fulfilled all regulatory requirements and had played by the rule since the rare earth plant first started its operations in Gebeng here.
Lynas is the only significant producer outside China of rare earths, which have military applications and are used in batteries, computers, televisions and many other products.
Lynas’ status as a non-Chinese producer came into sharper focus this week after major Chinese newspapers, including the official People’s Daily, reported Beijing was ready to use rare earths to strike back in its trade war with the US.
China supplied 80% of the rare earths imported by the US from 2014 to 2017, when it accounted for 81% of the world’s rare earth production, data from the US Geological Survey showed.
“Obviously the strategic value of Lynas, given what has happened with the US trade war, has just been highlighted,” said Matthew Ryland of Greencape Capital, the company’s second-biggest shareholder.
“That’s a strategic value for all stakeholders not just Lynas shareholders. It’s quite important for Malaysia now.”
The Lynas processing plant in Malaysia refines ore from a rare earths mine in Western Australia. Lynas last week unveiled detailed expansion spending plans of A$500 million designed to boost production and placate Malaysian regulators’ concerns about the waste disposal at its plant.
– Bernama, Reuters