Lynas downplays radioactive fears
Australian miner Lynas has sought to downplay fears about radioactive residue from its rare earths plant in Malaysia.
Lynas shares entered their fourth trading halt in five weeks on Tuesday after Malaysian government ministers ordered it to export waste from its local rare earths plant.
Lynas began processing rare earths, which are used in hi-tech equipment ranging from missiles to mobile phones, at the plant in eastern Pahang state in November after a delay of more than a year due to opposition over health fears.
Four Malaysian cabinet ministers on Monday said in a joint statement that a temporary licence granted to Lynas required it to remove "all the residue" from the plant out of Malaysia.
"The obligation imposed on Lynas in this matter is very clear," the ministers said.
"The government will not compromise the health and safety of the people and the environment in dealing with the issue of Lynas."
If Lynas fails to comply, the government can suspend or revoke the licence and order it "to immediately cease operation", the ministers warned.
Lynas responded by saying that under the terms of its temporary operating license for the plant it was obliged to undertake research on the commercialisation, recycling and re-use of residue materials from the plant.
It is also required to draw up plans for a permanent disposal facility before mid 2013.
"Lynas will ensure that all residue material that is the source of concern to the Malaysian public will be converted into co-products, and exported from Malaysia if the co-products are not approved for use in Malaysia and an acceptable location for the permanent disposal facility is not approved," Lynas said in a statement.
"The co-products must be in a form acceptable for international markets and in accordance with all Malaysian regulations and international conventions."
Lynas was given the go-ahead by a Malaysian court in November to begin operating the plant.
However environmentalists have lodged an application to have work at the plant stopped, with a hearing date set for December 19 in the Malaysian Court of Appeal.
The appeal is against the Kuantan High Court's earlier refusal to grant a stay against Lynas' temporary operating licence.
Lynas says there is currently no injunction or stay preventing the company from carrying out its operations at its Malaysian plant.
The Lynas Advanced Materials Plant is set to become one of few sites outside China to process rare earths. The metals, imported from Australia, are used in high-tech equipment.
Residents, activists and opposition leaders have staged numerous protests against the plant, saying it would release radioactive gases and solid waste such as radium and lead, and small amounts of uranium, into the environment.
Lynas has insisted that any radioactive waste would be low-level and not harmful and that it will safely dispose of it.
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