KUALA LUMPUR, Feb 12 — Putrajaya has rejected a request by Australian company Lynas to lift the conditions for the renewal of its rare earths refinery in Malaysia, a Singapore paper reported today.
Citing an unnamed senior government official, The Straits Times reported that Lynas will no longer be allowed to keep its radioactive waste from the refinery in Gebeng, Pahang as part of the three-year licence renewal conditions that will be in force from July.
“The Cabinet has decided to reject the request. Lynas will no longer be allowed to produce radioactive waste in Malaysia,” the source was quoted as saying, adding that an official announcement will be made later this month.
This means that going forward, the Australian company, one of the world’s largest producers of rare earths outside China, can only refine the materials at its Malaysian plant and must export the “cracking and leaching” of lanthanide concentrate produced here.
Lynas’ licence had been granted by the previous Pakatan Harapan (PH) government under Tun Dr Mahathir Mohamad in early 2020. The licence expires next month, The Straits Times reported.
It added that Malaysia’s Atomic Energy Licensing Board — which regulates the production of radioactive materials in the country — had already given informal notice of this matter to Lynas.
According to the Singapore paper, the Australian company will be given 30 days to file its appeal to Science, Technology and Innovation Minister Chang Lih Kang after official notification.
The Singapore paper claimed that various lobby groups that include diplomats from Australia, the United States, Japan and the European Union, have sought meetings with Chang in recent weeks for assurance that Malaysia will not disrupt the production of Lynas’ refined rare earths goods that are needed to make things like mobile phones, rechargeable batteries and military assets.
“The government would be happy to be part of the rare earths supply chain, but not at the cost of public support while political intrigue is still elevated,” an unnamed senior government official was quoted saying.
Pahang had its state election concurrently with the 15th general election last November.
But six other states — Perikatan Nasional-held Kedah, Kelantan and Terengganu, and PH-controlled Selangor, Penang and Negeri Sembilan — are due to hold their elections this year.
Citing other unnamed sources, The Straits Times reported that Chang who is also PKR vice-president, is keen to take a strong stand on the Lynas issue which Pakatan Harapan had campaigned hard for in the 2018 general election that catapulted it to federal power.
Chang is supposed to provide a briefing to MPs on this issue this Wednesday as Malaysia’s 15th Parliament sits starting tomorrow.
The Straits Times also reported that the construction of a permanent disposal facility for Lynas’ radioactive waste in Gebeng that was also part of the conditions, is at 30 per cent completion.
Chang told the newspaper he would make an announcement in due course.
