Lagi2 Lynas

How much to pay Lynas if project cancelled, group asks Putrajaya

By Debra Chong

September 01, 2011

The Lynas Kuantan refinery site under construction March 19, 2011.

KUALA LUMPUR, Sept 1 — Save Malaysia Stop Lynas (SMSL) wants Putrajaya and Pahang to disclose what they have to pay Lynas Corp if their controversial RM700 million refinery in Kuantan does not materialise.

“The public deserves to know how much the Malaysian authorities may have to compensate the Lynas company if the project is cancelled,” the Pahang grassroots group said in a statement today.

SMSL urged the authorities to spell out a permanent solution before the next general elections even as it called on the state’s residents to sign up as voters and make their feelings known through the ballot boxes.

In its belated National Day message today, the anti-Lynas lobby group said “Merdeka” will be meaningless if Malaysians’ destiny “is dictated not by themselves, but by some foreign companies”.

SMSL, which said it was non-partisan, vowed it will step up efforts, including setting up its own expert panel, to draw more supporters to its cause locally and abroad.

It added it will be sending out a team tomorrow to Western Australia, where the rare earths are being mined, to carry out its outreach work and seek out court action against Lynas Corp.

The group has been battling since early this year to shut down the RM700 million Lynas Advanced Materials Plant (Lamp) before it powers up, after international news reports and Japan’s nuclear crisis refreshed memories of the Asian Rare Earth radiation leak in Bukit Merah, Perak.

The Australian mining giant had previously said it expected to get a licence for a test run by year end, but Malaysia’s Atomic Energy Licensing Board (AELB) had last indicated the application had yet to be approved.

The International Atomic Energy Agency (IAEA) had in June visited Malaysia the review Lamp and put forward 11 recommendations for Lynas to meet before beginning operations which have been adopted by Putrajaya.

The Australian mining giant has said that its plant — which will extract rare earth metals crucial for high-technology products like smartphones, hybrid cars and wind turbines — will create a RM4 billion multiplier effect annually and 350 jobs for skilled workers.

Although reports say the plant may earn RM8 billion for Lynas, critics have questioned the real economic benefit of the project, pointing to the 12-year tax break Lynas will enjoy due to its pioneer status.