Kuala Lumpur (dpa) – An Australian mining firm is facing growing resistance to its plan to operate a rare-earth refinery in an eastern Malaysian state, amid environmental health concerns. The woes of Lynas Corp Ltd worsened Sunday as thousands of people protested in several cities nationwide against the plant in Kuantan town in the state of Pahang, 195 kilometers east of Kuala Lumpur. The Lynas Advanced Materials Plant, under construction since 2010, would produce metals used in products such as flat screens, iPhones, energy-efficient light bulbs, wind turbines and hybrid cars. Lynas expects to process up to 22,000 tons of rare earths annually, or about 20 per cent of the world market, at the Malaysian facility scheduled to start operation later this year. It hopes to generate some 8 billion ringgit (2.66 billion dollars) in annual revenues. The firm seemed to have taken the upper hand in its struggle to operate the facility after Malaysia's Atomic Energy Licensing Board (AELB) gave the plant a temporary permit to operate in late January. But on February 17, Kuantan residents asked the Court of Appeals to review and reverse the board's decision. The plaintiffs say radioactive waste from the 200-million-dollar facility poses environmental risks and hazards to human health. Their concern was not without basis. A rare-earth facility in the northern state of Perak, operated by a unit of Japanese Mitsubishi chemicals, was closed down in 1992 amid accusations that it had caused birth defects and leukemia to nearby residents and workers. That facility became one of Asia's largest radioactive waste cleanup sites, and the Japanese company spent more than 100 million dollars to clean up the mess. But it denied responsibility for the health problems suffered by the residents. Lynas insists that its refinery will be different. “The LAMP is completely different to the Bukit Merah (Perak) rare earths plant,” it said. “The Bukit Merah plant processed “monazite” from the waste of tin mines, which is very different to the rare earths we are processing. There are now much higher standards in place which mean Bukit Merah could never be repeated.” AELB executive secretary Abdul Aziz Raja Adnan said his office has set five strict conditions for Lynas to ensure safe operation of the plant. Those include identifying a permanent waste site and a detailed engineering study; payment of 50 million dollars as security deposit before it can operate; and the hiring of an independent assessor to monitor the company's operations. Critics were not convinced by explanations of Lynas and the AELB. Nuclear physicist Ahmad Bungsu Hamid Tuah warned that radioactive particles from the plant could also adversely affect people outside Kuantan. Political opposition leader Anwar Ibrahim vowed to cancel the operating permit if his party wins in the coming elections. “It's not all about business. People can make money, but don't sacrifice the health of the people,” he said. AELB's Aziz, however, said a team of UN atomic energy experts had told him there was no cause for concern about radioactivity. “People choose to believe what they want but I believe what the facts tell me and this is important,” he said. Lynas said it will take the necessary steps to protect its interests amid strong opposition from various sectors. “Lynas has complied, and will continue to comply, with the requirements of the Malaysian government regulatory authorities in relation to the LAMP,” it said in a statement filed with the Australian Securities Exchange. “While Lynas respects the concerns of members of the community, it does not believe there is any basis for the claims made in the (court) proceedings.” BM ShortURL: http://goo.gl/bSeiA Tags: Anger, Australia, Malaysia, Mining Section: East Asia, Environment, Going Green, Oceana
