Global Courant 2023-04-27 14:10:00
KUALA LUMPUR – Australian miner Lynas has demanded Science, Technology and Innovation Minister Chang Lih Kang withdraw from Friday’s appeal hearing over licensing terms that would see an abrupt halt to its Malaysian plant, the world’s largest rare earth production facility.
The Straits Times learned that Lynas Mr. Chang, who is a member of Prime Minister Anwar Ibrahim’s Pakatan Harapan (PH) coalition, has accused it of running a “political campaign” against it, giving it little hope of a fair trial.
“The allegation is that the minister, like his predecessor from PH, is negotiating tough terms to force a closure of the plant,” an official source said on condition of anonymity. “But the problem here is that according to the law, the minister must decide on the appeal.”
Lynas accounts for half of the global supply outside China of materials critical to high-tech applications.
Authorities granted Lynas a three-year license extension in February, but declined to lift conditions that would ensure effective radiation-free operations at the Malaysian plant by July 1.
The main requirement is the need to move “cracking and leaching” of lanthanide concentrate to shore and refine only intermediate materials at the Gebeng plant near Kuantan in Pahang.
The refining processes have led to fears of environmental and health risks from the waste product, most notably the release of radiation that Lynas claims does not affect normally occurring levels around Gebeng.
The PH-led government has since been under intense pressure to relax the July deadline, which Lynas said would have serious consequences for the production of rare earths used in products ranging from smartphones to electric vehicles and even military assets.
A possible closure of the A$1 billion (S$884 million) facility would not only be a huge blow to Lynas, but would also impact the geopolitically sensitive supply of rare earths, with China accounting for four-fifths of the world’s production .
ST understands that Pahang politicians from the opposition Perikatan Nasional, as well as industry and diplomatic officials, have been lobbying Mr Chang to at least postpone the deadline to later in the year so that Lynas can open an alternative cracking and leaching refinery in Australia can complete.
There is no legal term within which the minister must decide on the appeal.
In its quarterly report last week, Lynas said if licensing terms remain unchanged, it would have to close its Malaysian factory by mid-July. There will be little or no production for the next three months before ramping up, depending on how the capacity of the new refinery increases.
