Lynas to build permanent disposal facility in Bukit Ketam

  • Nation
  • Thursday, 30 Jan 2020

KUANTAN: Lynas Corporation has announced that it will build a permanent disposal facility (PDF) in the Bukit Ketam area here for its water leach purification (WLP) residue.

Company secretary Andrew Arnold said this was after the state government issued its consent for the site, which was situated near the border of Terengganu.

"Based on preliminary due diligence conducted by Lynas and its consultants, Lynas expects the site will be suitable as the location of the PDF.

"Lynas Malaysia has appointed Gading Senggara Sdn Bhd (GSSB) as the contractor to manage the entire PDF project, including design, construction, operation and institutional control during post-closure of the facility for a period to be decided by the regulatory authorities," he said in a statement on Thursday (Jan 30).

Arnold said GSSB is a member of the Gading Group of Companies and the group is a significant Malaysian business conglomerate whose business units include aerospace, defence, maritime, development and construction, energy and commodity and trading, and oil and gas.

"GSSB is also a government-appointed concessionaire, with the licence for industrial waste disposal for the east coast region of Peninsular Malaysia.

"The US dollar amount of the estimated total amount to be paid to GSSB for managing the entire PDF project is US$98mil (RM400.7mil)," said Arnold.

He added that Lynas had deposited a total of US$50mil (RM204.45mil) in cash and bank guarantees with the Atomic Energy Licensing Board (AELB) and would seek access to the money to partially pay the amounts.

On Aug 15 last year, the AELB announced that the Government had given a conditional six-month licence renewal to Lynas.

Among the conditions was for Lynas to identify a specific site to construct a PDF for its WLP residue and to obtain written permission from the state government for the use of that site.

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