PETALING JAYA: Australian rare earth miner Lynas Corp will temporarily shut down its processing plant in Pahang next month if the relevant government authorities does not give it the green light to increase production.
The Sydney Morning Herald (SMH) reported that Lynas had applied for the increase as it “approached the annual limits of concentrate it is permitted to process”.
The daily reported that Lynas chief executive Amanda Lacaze had explained to investors the decision, which could see it lose A$16 million (RM48.5 million) in revenue.
“We think that if this wasn’t in a volatile political environment, this would be a business-as-usual approval.
“The civil servants don’t have a problem with it, and it is within our IAEA (International Atomic Energy Agency) conditions,” she was quoted by the Australian daily as saying.
The factory began processing rare earth sent from Australia in 2012. The Pakatan Harapan coalition, which swept to federal power in the May 9 general election, had long expressed concerns over the refinery which environmentalists claim is environmentally hazardous.
Lynas’ main products, neodymium and praseodymium, are used in magnets for motors that drive automated seats and windows in cars, motors for hybrid vehicles and as magnets in electronic products, like DVDs and hard disk drives.
A committee reviewing the plant has been given until the end of November to submit its report and recommendations to the government.
‘Political interference’
SMH also reported that investors voiced out their frustration with the political interference.
The daily quoted Bob Richardson, a shareholder, who told the meeting it had come to a point where Putrajaya must explain why Lynas is “being singled out” when residential areas around Kuala Lumpur are said to have “far higher” background radiation levels.
To this Lacaze said: “I share your frustration, but it is what it is. We will work diligently to move our way through this.”
She, along with Lynas chairman Mike Harding, expressed confidence in Lynas escaping any serious issues from the review.
Last month, it was reported that Lynas is searching for an alternative place to operate in case the plant is forced to close down.
Lynas is the only rare earths processor outside China, which has a choke-hold on the market.
‘No decision taken yet by government’
Kuantan MP Fuziah Salleh said in a statement that Lacaze claimed the government did not approve Lynas’ application to increase its processing of lanthanide concentrate, a rare-earth element commonly used in magnets and superconductors.
“The government has not made a decision yet on the Lynas rare earth processing plant itself,” she added.
She said it was a concern that the plant had produced over a million tonnes of waste contaminated with radioactive material and toxic substances, which the Australian government would not accept without a special licence.
“If Lynas chooses to shut down its plant temporarily, it is entirely its prerogative to do so, whether it is to save production costs or to respond to market conditions strategically to increase its profit margin,” the MP said.
She added that Lynas should prioritise cleaning up the hazardous waste produced from the plant.
“Pollution and hazardous waste are major public health issues. Why should the health of Malaysians be sacrificed when no other decent government in the world would allow toxic waste from a foreign company to be left in the way which Lynas had expected Malaysia to endure?”
The Lynas Advanced Material Plant (LAMP) in Gebeng, Pahang, has been opposed by various groups such as environmentalists and locals, including the Kuantan MP, since the beginning of its operations in 2012.
The executive committee, set up last October, will review the LAMP operations to ensure that Malaysia does not become a toxic waste dumping ground for other countries.
At a hearing held by the committee in Pahang on Nov 11, officials from various government departments concluded that the LAMP operations had fulfilled all the criteria and safety requirements imposed by the government.
However, during the hearing, an AELB official said they had asked Lynas for a letter of undertaking requesting all radioactive waste be dumped outside of Malaysia. This they received on Feb 27, 2012.
The official also reminded that the on-site storage for radioactive waste that Lynas currently has is only temporary as their licence required them to eventually transport all waste out of Malaysia. -FMT
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