KUALA LUMPUR: The clock has never stopped ticking for a rare earth project in Pahang that promised lucrative returns for the state’s economy, challenged China’s dominance in the industry, yet invited criticism and protest since it started operations six years ago.
The latest obstacle facing the Lynas Advanced Material Plant (LAMP) is to export stockpiles of a waste product from its processing plant by Sept 2, when its licence is due for renewal.
A recent report from the company’s head office in Australia indicated that it could not meet that timeline.
In a note to shareholders, Lynas said it had appealed and had “reasonable confidence” that a resolution would be achieved.
“The company continues to work with the government to find a path forward.
“Lynas has always maintained that the current licence conditions are consistent with international best practice and ensure the safety of the Malaysian environment and people,” Lynas managing director Datuk Mashal Ahmad said.
The main criticism about the Lynas project has to do with the radioactive residue produced, which can pose a threat to humans if not handled properly.
For decades, China has monopolised the rare earth processing industry, but poor regulation led to vast toxic and radioactive waste sites.
In the case of Lynas, however, safety standards have been set very high, and radiological experts, including the International Atomic Energy Agency (IAEA), have given their assurance that the project is safe.
There have also been no reports of environmental and health problems since the plant started operating in 2012.
Rare earth gets its name from the scarcity of the elements, which also makes them more valuable. They have special properties and are used in a variety of applications and in many devices we use.
These include catalytic converters, nickel metal hydride (NiMH) batteries, energy efficient electrical motors, electronics, energy efficient fluorescent lamps and MRI machines.
The Lynas plant was envisioned to promote multiple downstream industries, like the electric vehicle and hybrid cars, electronics, renewable energy, oil and gas sector and defence applications.
The global rare earth metal catalyst market, estimated at US$4.6 billion (RM18.8 billion) in 2012, is forecast to grow to more than US$6 billion by next year, and by 2024, it could rake in more than US$20 billion.
The anti-Lynas protests have generally set aside data presented on the project’s viability and safety, focusing instead on the perceived threat the radioactive residue poses to humans.
The Energy, Science, Technology, Environment and Climate Change Ministry last year formed a review committee that found no fault with Lynas residue, as did several other national review committees, including the IAEA.
Lynas has installed radiation monitors, which record and show radiation levels round the clock, 24/7. People can also check the real-time monitoring of radiation levels via the company’s website.
Third-party consultants, which included the Atomic Agency Licensing Board, had also monitored surrounding Lynas areas and concluded that there was no observable change in radiation levels.
The New Straits Times contacted the office of Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin for comments, but was told it was not “timely to comment on the issue”.