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.