Science, Technology and Innovation Minister Chang Lih Kang today said he had rejected Lynas Malaysia's appeal to remove four conditions the government imposed on it.
However, he said the decision to give Lynas an extension to meet those conditions took into consideration the global supply chain.
"Taking into account the effect of this decision on the rare earth supply chain on a global scale, I agreed to extend the operating period for the cracking and leaching (C&L) facility to Dec 31," Chang said in a statement today.
The C&L plant must be shut down on Jan 1, 2024, and Lynas will also be barred from importing radioactive raw materials to Malaysia from that date, he added.
While the government understands that the rare earth industry is important, the minister stressed that it was committed to ensuring that any business regarding this industry would not have a negative impact on the environment and the local community.
In February, the Atomic Energy Licensing Board (AELB) agreed to renew Lynas' operating licence effective from March 3 for a period of three years.
However, this was subject to strict conditions.
One of these conditions was to relocate the C&L facility at Gebeng, Kuantan - which produces radioactive Water Leach Purification (WLP) residue - out of Malaysia before July 2023.
The other conditions that Lynas must comply with include beginning the process of developing a permanent disposal facility, submitting a work development plan and reporting its status, ensuring their cracking and leaching plant outside Malaysia is in operation by July and maintaining a financial deposit for compliance.
Lynas to appeal again
Lynas in a statement today, said it will appeal again to have the conditions removed.
"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 added.
Separately, Save Malaysia Stop Lynas said it hoped this latest extension will be the last.
"Though we noted with regret that considerable considerations have been granted to Lynas to extend its operation till the end of this year, we hope there will be no further extension after that.
"At the same time we hope the minister and AELB will closely monitor the radioactive waste that would be generated during this extended period and have them managed effectively and safely," the group said in a statement. - Mkini
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