Lynas files appeal to review conditions in operating licence

KUANTAN: Lynas Malaysia has filed an appeal for a review of the conditions maintained in its operating licence renewal.

Lynas Rare Earths Ltd said its wholly-owned Malaysian subsidiary had appealed to the Science, Technology and Innovation Minister.

This was done under the Atomic Energy Licensing Act 1984 for the purpose of seeking an administrative review of the decision of the Atomic Energy Licensing Board (AELB) in failing to consider Lynas' application for the removal of the licence conditions prohibiting the import and processing of lanthanide concentrate after July 1, it said.

In announcing the renewal of Lynas Malaysia's operating licence, Minister Chang Lih Kang said the company must comply with the conditions imposed since March 2020 so that cracking and leaching activities that produce radioactive waste would be conducted in Australia.

No cracking and leaching activities would be carried out at the Lynas plant in Gebeng here after July 2023, said Chang.

However, other activities that do not involve the production of radioactive waste would be allowed to continue operating, he added.

Previously, Lynas said it had applied to the regulator for the removal of those conditions as they represented a significant variation from the conditions under which its previous four operating licences were issued and under which Lynas made the initial decision to invest in Malaysia.

There were four conditions imposed when Lynas Malaysia received its three-year operating licence in 2020.

Among them was for Lynas to begin the process of developing a permanent disposal facility (PDF) within the first year from the date of the licence approval.

Lynas was also required to submit a work development plan for the construction of the PDF and report on its development status as determined by the AELB.

The company must ensure that a cracking and leaching plant outside Malaysia would be in operation before July 2023.

After that period, Lynas would no longer be allowed to import raw materials containing naturally occurring radioactive material into Malaysia.

In the meantime, the holding of a financial deposit would be maintained for compliance with the relevant licence conditions.