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Lynas Advanced Materials Plant Controversy
“Rare Earths” are group of 17 elements that are currently used in a wide array of
modern technologies, ranging from hard disk drives to lamp phosphors to hybrid car
batteries. At present 90% of these minerals are mined in China due to a range of
economic and environmental factors. In 2012, an old rare earth mine is on track for
going into full production in 2013 at Mount Weld, Western Australia (owned and
operated by Lynas Corporation). The ore from the Mount Weld mine will be milled
and processed in Malaysia and this remote processing operation has caused
considerable environmental conflict in Pahang state.
Figure 1: A worker putting rare earth products into packages
The rare earth industry within Malaysia has been the focus of intense political
scrutiny, social activism and media interest during the past 2 years, in light of the
Malaysia Government approval of the construction and operation of a $1 billion rare
earths processing and refinery plant at Kuantan in Pahang State. This facility is owned
by Australian corporation Lynas and more commonly referred to as the “Lynas
Advanced Materials Plant” (LAMP).
In August 2012 the first phase of the LAMP was completed to accommodate 30,000
tonnes per annum. The second phase of the LAMP project is still being constructed
and when finished, the production of Lynas rare earth oxides will be doubled. The
company has commenced its first production following the November 2012 decision
by the Kuantan High Court to allow processing to proceed (which continues to be
under appeal but likely to move forward).
The Lynas Advance Materials Plant (LAMP) has been built near Kuantan, Malaysia.
This location was chosen due to the site having all the resources required to run the
plant at a lower cost than originally approved in Western Australia. In addition, the
Malaysian government granted the company "pioneer" status and offered it a 12-year
tax exemption. The LAMP is scheduled to commence operations in 2012. The LAMP
has attracted some local opposition, and the whole opposition movement looks to
have become politicised.
Kuantan MP Fuziah Salleh has been raising her concerns over the risks of having a
rare earth processing plant near Kuantan in the Parliament of Malaysia since 18
November 2008. A civil society group “Concerned Citizen of Kuantan” was formed
in December 2008, after a meeting held by Fuziah to meet with about twenty residents
and professionals from different ethnic groups and NGOs in Kuantan to discuss the
LAMP issues.
In early March 2011, the article published in the New York Times has raised the
public awareness concerning the LAMP. At the same time, the Fukushima Daiichi
nuclear disaster has ramped up fear in the Malaysian people about the risks
of radioactive exposure. Since then, the Kuantan community group protesting against
the LAMP led by Kuantan MP Fuziah Salleh had gradually evolved into a bigger
group, i.e. "Save Malaysia Stop Lynas" (SMSL). SMSL was loosely formed by
Fuziah and her team in March 2011, after a signature drive launch and public talk on
the urgent need to cease the LAMP from commencing operations. Along the protest
against the LAMP, various anti-Lynas groups and NGOs have been mushrooming in
Kuantan and in Malaysia.
Figure 2: The campaign set up to oppose the establishment of Lynas factory
Since March 2011, the residents of Kuantan have been protesting against LYNAS
setting up the world's biggest rare earths refinery plant in Kuantan.
Figure 3: Protests to oppose the establishment of Lynas factory in Malaysia
An Australian Greens MP, Robin Chapple, has shot down Lynas Corp’s attempt to
ship radioactive waste from Malaysia back to Western Australia State saying that the
Western Australia Nuclear Waste Storage (Prohibition) Act 1999 forbids the import
of radioactive waste.
On Sept 5, 2012, it was reported that Lynas (Malaysia) Sdn Bhd was awarded the
temporary operating licence by Malaysia's Atomic Energy Licensing Board for a
period of two years. The Lamp plant has been fraught with difficulty and it has
generated strong opposition from a small minority of Malaysians, unwilling to be the
recipients of Australia's wastes. The local residents have consistently protested the
plant in various gatherings of up to 1,000 people and have been linked with further
protests of the Malaysian opposition party. Despite minority concerns about the plant
and its alleged lack of a proper long term disposal plan for its radioactive wastes, a
two-year temporary licence has been issued.
Figure 4: Map showing the route of participants of Green Walk, which is an event organised to raise the awareness and to oppose the establishment of the Lynas rare
earths factory.
On Dec 19, 2012, Save Malaysia Stop Lynas group had appealed against an earlier
decision to grant Lynas a temporary operating licence, the Malaysian Court of Appeal
dismissed the appeal with costs in favour of Lynas.
Figure 5: Residents expressing their disappointment over the court’s decision to dismiss their appeal.