PETALING JAYA: Rare earth producer Lynas has been granted an extension of “a few months” to continue processing and importing radioactive materials in Malaysia.
Science, technology and innovation minister Chang Lih Kang did not elaborate when asked about the extension. He told FMT: “Please wait for tomorrow’s statement for more details.”
The ministry had convened a closed-door tribunal on April 28 to discuss an appeal by Lynas against the four conditions set against it by the Atomic Energy Licensing Board.
Under the Atomic Energy Licensing Act, Chang has the authority to decide on the Lynas appeal, which is seen as a last-ditch attempt to ensure the company can continue its operations at its plant in Gebeng, Kuantan, after July 1.
The company’s operating licence in Malaysia was renewed in February for three years , with no changes in the licensing conditions introduced in March 2020 that prohibited the import and processing of rare earth elements.
Lynas had submitted an application to remove these four conditions, which was turned down by the licensing board, resulting in the April 28 appeal.
The primary condition placed by the government is that Lynas must relocate the “cracking and leaching” of lanthanide concentrate to a site outside Malaysia and only refine intermediate materials at its facility in Gebeng.
The Malaysian Lynas plant accounts for half the world’s rare earth supply outside China. The company had said it would temporarily close its plant in mid-July if the licensing conditions remain unchanged.
Environmental groups have raised concerns about the environmental and health risks associated with the refining processes, particularly the potential release of radiation.
However, Lynas maintains that such activities have no impact on the typical levels of radiation found in the vicinity of Gebeng.
Rare earth is used to make electronic equipment, batteries, super magnets and other sophisticated equipment. - FMT
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