AELB CHAIRMAN
Y. Bhg. Prof. Datuk Dr. Sukiman Sarmani
Lecturer
Faculty of Science and Technology
National University of Malaysia
Feb 1 (Reuters) - Malaysian authorities approved a temporary operating license for Australia's Lynas Corp.'s $200 million rare earths processing plant, a move seen as crucial to easing China's grip on the supply of minerals used in products from smart phones to hybrid cars.
The approval by the country's Atomic Energy Licensing Board on Wednesday eases uncertainty for Lynas and investors after speculation that the licence could have been rejected in the face of opposition from political parties and residents near the plant ahead of national elections expected within months.
"The temporary licence has been approved with conditions. If these conditions are not met, the temporary licence can be suspended or cancelled and subsequent applications for the licence will not be considered," the atomic licensing board and the Ministry of Science said in a joint statement.
Malaysian government officials have said the final decision on the so-called pre-operating licence will be made by Prime Minister Najib Razak and his cabinet, but an opposition politician has already called for a judicial review .
Fuziah Salleh - PKR vice-president
"I am disappointed, but I expected this move from the Malaysian government," said Fuziah Salleh, an opposition member of parliament for Kuantan in Pahang state where the plant is being built.
She said opponents would file for a judicial review of the decision, especially to voice their concern that radioactive residue from the plant's operations could contaminate the environment.
"The main issue is the permanent disposal facility, the government has asked for the waste to be shipped back to the source -- which is Mt Weld but Australia has said it will not take the waste back. So Malaysians are stuck with it at the expense of profits for Lynas."
Original from :http://www.reuters.com/article/2012/02/01/australia-lynas-malaysia-idUSL4E8D15KQ20120201?type=companyNews
The Atomic Energy Licensing Board (AELB) today clarified that Lynas Corporation has yet to be issued a Temporary Operating Licence (TOL).
The TOL, which was approved on Wednesday, would only be issued once Lynas made the required payments and the AELB appointed an independent, third-party assessor.
These payments comprise the licencing and processing fees, the first instalment of the US$50 million to the Malaysian government and the cost of AELB’s third-party assessor.
Lynas's Share Price After being approved for a Temporary License
Lynas warns on any move to shut Malaysia rare earths plant
(Reuters) - Australia's Lynas Corp warned against any move by Malaysia's political opposition to shut the company's $200 million rare earths processing plant, saying on Tuesday such action would deter other foreign investment in the country.
An opposition member of parliament for Kuantan, where the controversial plant is being built, on Monday told Reuters the opposition would stop the plant if it won elections expected to be called within months.
Lynas Executive Chairman Nicholas Curtis
Lynas Executive Chairman Nicholas Curtis dismissed Kuantan MP Fuziah Salleh's view as only one view within what would make up the political coalition against the government and said the main opposition PAS party supported the Lynas plant.
"She is the only person who has come out and said that the opposition would potentially revoke (a license). I do not consider the words of a known opponent to carry necessarily the PAS party position at all," Curtis said, adding that he did not believe her view represented the PKR party's policy either.
"It would certainly not be stable for foreign direct investment in Malaysia were that situation to occur," he told analysts and reporters on a conference call.
Lynas is awaiting a temporary license to start operating the rare earths plant and is expected to receive a decision from the cabinet of Prime Minister Najib Razak next week, based on whether the plant meets safety standards for handling radioactive material.
"We look forward to hearing the final decision of the government in the very near future," Curtis said, declining to comment on whether any conditions may be attached to the temporary license.
The plant, which is 91 percent complete and on track to be able to start producing in the June quarter, will process rare earths from Lynas's Mount Weld mine in Australia.
The operation is key to breaking China's grip on the supply or rare earths metals, crucial in high-tech and green products ranging from smartphones to hybrid cars.
Curtis said quotas imposed by China on rare earths exports as it deals with environmental problems at some domestic operations were likely to constrain supply for some time.
"We do expect that prices will continue to reflect a structural deficit in the market for a period of time to come," Curtis said.
Lynas sells bonds to fund Malaysian refinery
Lynas, owner of one of the few operational rare earth mines outside of China, has agreed to sell $US225 million ($214 million) in convertible bonds to help fund what will be the world’s largest refinery of the minerals in Malaysia.
Mount Kellett Capital Management agreed to buy the bonds on behalf of funds it manages, Lynas said today. Lynas also pushed back the planned start up of the refinery to the second quarter this year from the first quarter because of extra engineering requirements and the monsoon season.
Lynas is awaiting Malaysian approval to start refining rare earth ore produced at its Mount Weld mine in Australia. Malaysia’s Atomic Energy Licensing Board will make a recommendation at the end of this month, which will then be considered by cabinet, Malaysia’s International Trade and Industry Minister Mustapa Mohamed told reporters last week.
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