Latest chapter in ongoing saga

AS Lynas Rare Earths prepares to close a chapter in its Malaysian operations, what started as a foreign direct investment must have become a source of endless headaches for the company and successive governments over the years.

The controversy itself did not begin until 2011, in the wake of the Fukushima nuclear plant accident, when Kuantan residents became aware of a rare earth processing plant being built in their backyard.

Fears and worries of radioactive contamination started spreading among the locals and despite numerous assurances by the authorities, experts, politicians and government officials, most Kuantan residents had already made up their minds.

By then, the plant was near completion and Lynas was seeking a temporary operating licence to begin operations.

Protests and legal challenges ensued, spreading awareness of the Lynas project nationwide and bringing forth attention from the government.

A major point of contention was that the rare earth ore would be mined in Australia and then transported to Kuantan to be processed, with its waste being left in Malaysia.

Of the by-products, the water leach purification (WLP) residue proved to be the most controversial due to its radioactivity.

Although often plagued with setbacks due to protests from the anti-Lynas movement, the company managed to produce its first rare earth products in 2013 and successfully have its operating licence renewed in the following years since.

New troubles arose for the company when Pakatan Harapan came into power in 2018 and decided to take a tough stance on the plant’s operations.

Among the conditions imposed by the Atomic Energy Licensing Board in 2019 were for a permanent disposal facility to be built for the WLP residue and the company’s cracking and leaching stage of its operations to be relocated out of the country.

With a new government in power since last year, Science, Technology and Innovation Minister Chang Lih Kang is now holding Lynas to its conditions to end the import and processing of lanthanide concentrate after Jan 1 next year.

It should be noted that Lynas’ announcement does not mean the full closure of the book on its Malaysian side of operations as the company still plans to process mixed rare earth carbonate in Kuantan.

Lynas itself does not seem to have given up on importing lanthanide concentrate to be processed here as the company had filed for judicial reviews of its operating licence conditions.

It had also filed for a stay to allow its plant to operate on a normal basis while the administrative and legal appeals are heard.

In its announcement, the company laid out a scenario as well where its licence is updated to allow the continued import and processing of lanthanide concentrate.

Lynas certainly has its value in Malaysia, what with the emergence of green energy and while Western nations are attempting to reduce their dependence on China, the world’s largest rare earth materials producer.

But nothing is going to change the minds of the anti-Lynas section of the population, who will always be distrustful of whatever Lynas does.

Following the announcement, the Save Malaysia, Stop Lynas (SMSL) group, which had campaigned against the company’s operations in Kuantan since 2011, issued a statement with a stern reminder to the government.

“A complete withdrawal of Lynas’ operations here will be welcomed by all Malaysians who have been actively campaigning against allowing our precious land to be turned into dumpsites for foreign-sourced waste, be it radioactive or plastic in nature.

“The news seems to herald a new chapter in our campaign. However, we wish to caution all Malaysians that not until we have an official announcement from the relevant parties on this matter, there remains to be seen what will actually happen next,” said SMSL.

The group also said it wished to remind the government that any reversal or U-turn on the decision not to allow the importation of rare earth concentrate and the cracking and leaching process would irreversibly impact its credibility and trust by the Malaysian public.

Ultimately, no matter the outcome once next year comes around, not everyone will be happy in the ongoing Lynas saga.