KUANTAN: Lynas Corporation has filed an appeal against the new condition imposed on its operating licence renewal.
The rare earth materials producer said this was in line with the Atomic Energy Licensing Act 1984 in respect of the decision by the Energy, Science, Technology, Environment and Climate Change Ministry (MESTECC) to have Lynas export its water leach purification (WLP) residue out of Malaysia before Sept 2.
"Our preferred course of action remains to resolve these issues through our ongoing discussions with the Malaysian government. However, the statute in Malaysia requires that an appeal must be filed within 30 days, otherwise we may lose some rights of appeal.
"The statute requires that this initial appeal is lodged with the Minister of MESTECC," Lynas chief executive officer Amanda Lacaze said in a statement.
She added that key issues in relation to the new condition include the availability of regulatory approvals, the proposed timetable for export of WLP residue and the significant cost of such an action.
"We look forward to continued discussions with the Malaysian government to seek to resolve these issues. Today's appeal has been filed to preserve our legal rights while those discussions are ongoing," said Lacaze.
Following an executive review on Lynas' operations in November last year, the ministry decided that it would not allow the unlimited accumulation of residue at the Lynas Advanced Materials Plant in Gebeng here and insisted that the company remove its WLP from Malaysia.
The new condition would be applied to Lynas Malaysia's future licences or permission renewals.This was in spite of the review committee's recommendation for Lynas to immediately identify and build a permanent disposal facility for the WLP residue.