KUALA LUMPUR, April 28 — Australian rare earth mining company Lynas has requested Science, Technology and Innovation Minister Chang Lih Kang to withdraw himself from its appeal hearing that is set for today as it seeks to overturn the Malaysian government's licence conditions that would otherwise revoke its licence to operate in the country.
According to a report by The Straits Times today, Lynas accused Chang of launching a “political campaign” against it, making it unlikely to receive a fair hearing.
“The claim is that the minister, like his predecessor from PH, is setting up difficult terms to force a closure of the plant.
“But the issue here is that by law, the minister has to decide on the appeal,” unnamed source was quoted as saying.
On February 13, Malaysia’s Atomic Energy Licensing Board, now renamed Atom Malaysia, issued a conditional renewal of Lynas's refinery operating licence in Gebeng, Pahang for another three years from March 3 this year to March 3, 2026.
The conditions include cracking and leaching activities, the generation of water leach purification residues, and the importation of lanthanide concentrates from Australia, in a bid by the government to prohibit all activities that could produce radioactive waste from Malaysia by July this year.
“If Lynas failed to comply with these four conditions imposed on them, the licence could be revoked,” Chang said back then.
According to The Straits Times, the conditions set by the government would greatly affect its production of rare earth elements that are used in products such as smartphones, electric vehicles, and military assets.
The shutdown of its facility could disrupt the geopolitically sensitive supply of rare earth, given that China currently controls four-fifths of the world's production, the Singapore daily said.
The newspaper also reported Lynas saying in its company quarterly report last week that its Malaysian plant will have to cease operations in mid-July unless Putrajaya reconsiders the licensing conditions.
Consequently, there will be minimal or no production in the next three months before a new refinery's capacity increases.
“Grounds for the appeals, evidence related to those grounds and associated applications (including for a stay allowing Lynas to operate on a normal basis until the administrative and legal appeals have been heard and decided) have been lodged ahead of the formal hearing,” The Straits Times quoted Lynas saying in its report.