Ministry rejects appeal to drop operating conditions

PUTRAJAYA: Lynas Malaysia Sdn Bhd’s (Lynas) appeal to drop four licence conditions set by the Atomic Energy Licencing Board (AELB) has been rejected, says Chang Lih Kang.

The Science, Technology and Innovation Minister said after consideration, Lynas’ appeal was rejected after an appeal hearing session was held on April 28 following AELB’s decision.

However, Chang agreed to extend the period for the plant’s cracking and leaching (C&L) activities until Dec 31 after taking into account the impact of the decision on the rare earth supply chain at the global level.

“As such, effective Jan 1, 2024, Lynas needs to ensure that when its overseas C&L plants start operations, Lynas will no longer be allowed to import raw materials containing natural radioactive materials into Malaysia,” he said in a statement yesterday, Bernama reported.

Earlier, AELB rejected Lynas’ application to drop four conditions related to water leach purification (WLP) residue management after July 2023, C&L activities at Lynas Advanced Materials Plant (LAMP), and the import of lanthanide concentrate from Australia.

With this decision, Lynas can no longer produce additional radioactive waste after July 2023.

Chang said the decision is final based on Section 32(5) of the Atomic Energy Licensing Act.

“This decision was made after taking into account economic interests, environmental protection and public health,” he said.

The minister also added that the Malaysia Madani government understands the importance of the rare earth industry and is committed to ensuring that any business dealings related to the industry will not have a negative impact on the environment or the local population.

“The decision was taken after careful evaluation, based on the principles of sustainable development and safety,” he added.

Chang said the ministry would continue to work with all stakeholders to ensure that the rare earth industry in Malaysia grows responsibly and complies with the regulations and standards set.

The company had repeatedly defended itself, claiming that its operations were safe and stressing that the implementation of such licensing conditions would result in a loss of jobs in Malaysia.