KUALA LUMPUR: Lynas Malaysia has secured a 10-year licence extension for its rare earths plant in Gebeng, but under much tougher conditions that will see the production of its controversial radioactive residue halted after five years and no new permanent disposal facility (PDF) built.
Science, Technology and Innovation Minister Datuk Chang Lih Kang said the licence under the Atomic Energy Licensing Act 1984 (Act 304) has been renewed from March 3, 2026 to March 2, 2036, subject to stricter terms and a comprehensive review after the first five years.
A key condition is that the production of Water Leach Purification (WLP) residue must cease by 2031.
“The generation of WLP residue will be stopped after the first five years, which is until 2031.
“Whatever WLP is produced before or within that five-year period must be neutralised into waste that is no longer radioactive, to below one becquerel per gram (1 Bq/g). I think this is something good and we will achieve our goal by 2031,” Chang told reporters in Parliament on Monday (March 2).
He stressed that there will be no new PDFs in future for WLP that exceeds regulatory limits under Act 304.
“This is a commitment by the government to the people of Malaysia and, at the same time, to foreign investors – that as long as they comply with the licence conditions, they can continue to operate,” he said.
In an earlier statement, the Science, Technology and Innovation Ministry said the move was in line with the government’s stand that there should be no continuous accumulation of radioactive residue in the country.
Chang said WLP generated before and during the initial five-year period will be placed in the existing PDF, which is still under construction.
“It will be placed in the PDF. The PDF is in progress, it is already 75% completed and will be completed by the end of 2026.
“The WLP residue before that will be placed in the PDF. But there will be no new PDF after this,” he said.
He also confirmed that Putrajaya is not requiring Lynas to send the residue back to Australia.
Asked whether the government had ordered WLP to be shipped out of the country, Chang replied: “No. The current residue will be placed in the PDF. There will be no new PDF.”
Beyond waste and safety, the renewed licence also tightens Lynas’ obligations on research and development (R&D).
He said Lynas must carry successful R&D results from the laboratory to commercial and industrial application, and strengthen collaboration with local research institutions and industry players.
The existing requirement for 1% of the company’s annual gross sales to be set aside as an R&D fund is maintained under the new licence.
He added that Ministry and the Atomic Energy Department will carry out strict monitoring and continuous enforcement to ensure full compliance with all licence conditions, including radiation safety, environmental protection and residue management.
He said, recognises the strategic importance of the rare earth industry to the national economy, but stressed that public safety and environmental sustainability remain the priority.
“The rare earth industry in Malaysia must operate in a controlled, safe and responsible manner,” he said.
To strengthen transparency and public confidence, the Ministry and the Atomic Energy Department are also providing open access to environmental radiation data nationwide via the Environmental Radiation Monitoring System (ERMS).
The data can be accessed in real time at https://www.mosti.gov.my and https://erms.atom.gov.my.
Lynas Rare Earths CEO and managing director Amanda Lacaze thanked the government for approving the company’s licence renewal, saying it provided investment certainty.
“Lynas welcomes the longer licence term which provides greater investment certainty for Lynas and our rare earths supply chain partners and customers,” she said in a statement.
