KUALA LUMPUR, Dec 12 – The Cabinet today endorsed a ministerial statement issued earlier this week instructing Australian miner Lynas to ensure all residue and by-products from its rare earth refinery are removed from the country.
Putrajaya’s latest statement comes even after Lynas executive chairman Nicholas Curtis saying today that that the company’s operating licence does not require it to ship out of Malaysia any residue produced from its refinery in coastal Gebeng.
Curtis also said that Lynas would push on with plans to develop a permanent disposal facility (PDF) here despite an ongoing storm over its potential waste hazards.
Today’s ministerial statement was issued by four Cabinet members – Minister of International Trade and Industry Datuk Seri Mustapa Mohamed, Minister of Science, Technology and Innovation Datuk Seri Panglima Dr Maximus Johnity Ongkili, Minister of Natural Resources and Environment Datuk Seri Douglas Unggah Embas and Health Minister Datuk Seri Liow Tiong Lai.
But Ongkili had just a day earlier added to the confusion by suggesting that it was up to Lynas to decide where to sell its converted waste material.
The latest statement by the four ministers will now put Lynas in a difficult position as Curtis had also said that Malaysia is treating Lynas as a “political football” ahead of the country’s elections that must be called by next April when the Barisan Nasional (BN) government’s mandate expires.
The four minister’s statement today could have a significant impact on Lynas operations here if it does not come up with a concrete plan to ship wastes out of Malaysia.
They said that the Cabinet today reaffirmed the joint statement they had made on Dec 10 relating to the removal of the residue out of the country.
“Reiterating public health and safety as the highest priority, the government will ensure that all related government agencies closely monitor the operation of LAMP (Lynas Advanced Materials Plant), especially on the handling and the management of the residue generated by it,” they said in the statement carried by national news agency Bernama this evening.
This is consistent with the conditions stated in the Temporary Operating Licence (TOL), they said.
In their earlier statement, the ministers said the obligation imposed on Lynas in this matter is very clear, and that the government would not compromise the health and safety of the people and the environment in dealing with the issue of Lynas.
They had also reiterated that if Lynas failed to comply with the condition, the Atomic Energy Licensing Board (AELB) was empowered under Section 22 of the Atomic Energy Licensing Act 1984 (Act 304) to suspend or revoke the TOL and order Lynas to immediately cease operation.
The rare earth refinery in Gebeng remains a thorny issue for the ruling Barisan Nasional (BN) government, especially in the run-up to the general election due within months.
Despite repeated efforts to reassure the public of the plant’s safety, residents and environmental activists continue to conduct high-profile legal and popular campaigns against the controversial plant that has faced stiff and persistent opposition.
The resistance towards the plant has also provided the opposition Pakatan Rakyat (PR) ample fodder with which to target Kuantan, which it already wrested from BN in the previous general election, as well as other areas in Prime Minister Datuk Seri Najib Razak’s home state of Pahang.
Lynas fired up its kiln earlier this month, with the AELB saying this week it will place its officers at the plant to monitor the trial run.
Lynas has been ready to begin operations since early May but faced delays due to environmental and safety disputes, which are pending in court.
The Sydney-based company has repeatedly said its plant is safe and is not comparable to a rare earth plant in Bukit Merah, Perak by a unit of Mitsubishi Chemicals in 1992, which has been blamed for causing birth defects and a high rate of leukaemia cases among workers and residents nearby.
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