Redzuan: Govt made clear decision to allow Lynas' operations to continue

KUALA LUMPUR: The government's decision on rare earth materials producer Lynas is clear – it will be allowed to continue operating in Malaysia, says Redzuan Yusof.

The Entrepreneur Development Minister also said the government had not decided on if Lynas should send its radioactive waste back to its country of origin, Australia, as it is a separate matter to be decided.

"We are still in discussions on the best way to manage this waste, rather than have a bilateral effect in terms of two-way trade.

"We had a previous agreement to allow investors to come into this country, therefore we have to manage it. We cannot just simply force someone to take back waste. That is not the condition of the contract," he told reporters when met at the Parliament lobby on Monday (April 1).

He was asked to elaborate on a report by Malay daily Utusan Malaysia, which quoted him as saying that the Lynas factory would not be shut down, which will send a signal that foreign direct investment is welcome in Malaysia.

At the same time, Redzuan said the Pakatan Harapan government was a business-friendly government, adding that Lynas' investment is "too big to ignore".

"That is my view and we have discussed this in Cabinet, we should continue but the waste is a separate matter to address. There are other methods to dispose of this waste," he said.

Redzuan said that the government must not paint a picture that Malaysia is not business-friendly.

"You have to remember – Lynas is a very strategic industry to the world. It's not quite correct to just label it unsafe. We are watched by the highest authorities in the world with regards to anything radioactive (materials) or even something detrimental to the environment," he added.

Meanwhile, Redzuan also appeared unfazed that his remarks contradicted Yeo Bee Yin's, and said that the Energy, Science, Technology, Environment and Climate Change Minister should take responsibility for her statement.

"Well, I don't know if that is her personal opinion or if it was a decision by the Cabinet – but we have yet to make a firm decision collectively to send the waste back to Australia," he said.

Last December, Yeo said the management of Lynas should honour its commitment to remove its water leach purification (WLP) residue from Malaysia before the end of its operating licence expiry date in Sept 2019.

Redzuan said he would suggest for the government to make public the findings by the Lynas executive review committee, so that people will understand how the government will manage Lynas' waste.

"We will also abide by the decision (of the report). If the committee says it's unsafe, then we have to shut it down. As far as I know, there is no indication by the review committee that the plant is unsafe, other than a suggestion that the waste should be taken back.

"But, we have to review whether that is an understanding between the two countries."

Earlier in the Dewan Rakyat, Deputy Energy, Science, Technology, Environment and Climate Change Minister Isnaraissah Munirah Majilis told lawmakers that a task force to monitor Lynas's waste was formed last December.

However, she was unable to provide an oral answer to a supplementary question raised by Mohd Shahar Abdullah (BN-Paya Besar).

Mohd Shahar asked if waste from Lynas would be sent back to Australia as this was never clearly stated in the government's report.

"I do not have the answer to that and will provide you a written answer," Isnaraissah said.

Several lawmakers wanted to ask more supplementary questions on the issue but were unable to do so as Deputy Speaker Datuk Mohd Rashid Hasnon said there was no more time for more supplementary questions.

Redzuan's remarks had led to disparaging remarks from Pakatan leaders, with Bentong MP Wong Tack saying it was "absurd" to allow Lynas to remain in Malaysia and Kuantan MP Fuziah Salleh saying that many people had been convinced by Lynas' 'low-level radiation narrative' strategy.