Global Courant 2023-04-14 10:32:01
KUALA LUMPUR – The Pakatan Harapan-led (PH) government has come under intense pressure to relax the July 1 deadline for Lynas, the world’s leading producer of rare earths outside of China, to ensure that Malaysia’s factory can operate practically radiation-free.
Authorities in February granted a three-year license extension to Australian miner Lynas but declined to remove terms in the license that require it to move “cracking and leaching” of lanthanide concentrate offshore and only refine intermediate materials at its facility in Gebeng, near Kuantan in Pahang .
These refining processes have fueled fears of environmental and health risks from the waste product, particularly the release of radiation that Lynas claims does not affect normally occurring levels around Gebeng.
Lynas, which produces one-tenth of the world’s supply of rare earth metals, crucial to the production of high-tech products such as smartphones and flat-screen TVs, has launched a strong defense of its business ahead of its April 28 appeal against licensing terms.
Opposition lawmakers from the Perikatan Nasional (PN) coalition have also tried to defend the Pahang facility, saying it could be a source of technology transfer so that Malaysia can become a player in the crucial advanced applications industry.
“Rare earth is an issue that goes beyond science, but also geopolitics and our economy,” Parti Pribumi Bersatu Malaysia youth chief Wan Ahmad Fayhsal Wan Kamal said in parliament last month.
“If we continue to adhere to these conditions, we might as well close the factory.”
Lynas has issued a slew of rebuttals since February, challenging claims that its activities are unsafe for the environment and a health hazard.
It also organized a rally of its employees on February 23 in a call for Prime Minister Anwar Ibrahim to intervene in the permit decision that has “put the livelihoods of thousands of people at risk”.
The Straits Times has learned that local PN politicians in Pahang, as well as industry and diplomatic officials, have been lobbying Science, Technology and Innovation Minister Chang Lih Kang to postpone the July 1 deadline at least until later this years so that Lynas can complete construction of an alternative. cracking and leaching refinery in Australia.
A potential closure of the S$1 billion facility would not only be a huge blow to Lynas – which has yet to start up other production facilities – but will also affect the geopolitically sensitive supply of rare earths that are critical to making products such as mobile phones, rechargeable batteries and military equipment. China controls four-fifths of the world’s rare earth production.
“The request is for six months because the Australian factory will not be ready in time,” a source told ST of the confidential negotiations ahead of the hearing on April 28, which will be chaired by the minister.
Mr Chang, vice-president of Datuk Seri Anwar’s Parti Keadilan Rakyat (PKR), had declined to comment on the Lynas issue in an interview with ST last month, stating that he did not wish to prejudice the appeal pending he decides at his own discretion. on.
“Now that it is on appeal, I better not say anything about it. The decision is final. Sometime in early or mid-May,” he said.
