Lynas to seek legal review after 6-month extension granted

 

Lynas says it wants to ensure that it is treated fairly and equitably as a foreign direct investor and as a significant employer and contributor to the Malaysian economy.

PETALING JAYA: Rare earths producer Lynas will seek a legal review of its licensing conditions in Malaysia after it was granted a six-month extension to meet the requirements attached to its operating licence.

The company said Malaysia offered legal avenues for the review of its licence conditions, which it will utilise accordingly.

“Lynas has made significant investments in its Malaysian facility and will seek review through these processes in respect of the conditions to ensure that Lynas is treated fairly and equitably as a foreign direct investor and as a significant employer and contributor to the Malaysian economy,” it said in a statement today.

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Lynas said the extension will allow its cracking and leaching plant in Gebeng, Kuantan, to continue operations until Jan 1 next year as well as remove the requirement to shut down the plant before that date.

Last night, Prime Minister Anwar Ibrahim confirmed that Lynas Malaysia had been granted an extension under conditions that must be strictly adhered to.

Science, technology and innovation minister Chang Lih Kang had said earlier that Lynas had been granted an extension of “a few months” following an appeal by the company against four conditions imposed by the Atomic Energy Licensing Board.

Chang is expected to release further details of the extension today.

The ministry had convened a closed-door tribunal on April 28 to discuss the Lynas appeal to remove the four conditions introduced in March 2020 which had prohibited the import and processing of rare earth elements.

The primary condition 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 by July 1.

An application to remove the four conditions was turned down by the licensing board, resulting in the April 28 appeal, which is seen as a last-ditch attempt to ensure the company can continue its operations at its Gebeng plant.

The Malaysian 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 earths are used to make electronic equipment, batteries, super magnets and other sophisticated equipment. - FMT