Malaysia addresses concerns over rare earths plant

Yahoo News 22 Apr 11;

KUALA LUMPUR (AFP) – Malaysia said on Friday it would ask independent experts to assess the environmental impact of a planned refinery processing rare earths from Australia, amid protests against the huge facility.

Trade Minister Mustapa Mohamad said the government had decided to form the international panel after listening to public concerns over the plant, which is being built by the Australian mining company Lynas in Malaysia's Pahang state.

Lynas has described the facility as the largest of its kind in the world and the plant is set to be one of the few sources of rare earths -- used in everything from iPhones to wind turbines -- outside China.

Campaign groups and residents, however, have expressed concerns over the environmental and health implications, saying the Lynas Advanced Materials Plant in the town of Kuantan will produce huge quantities of radioactive waste.

A similar facility built by a Japanese firm in another part of Malaysia was forced to shut down in 1992 due to protests.

Mustapa said the panel would have one month to investigate and submit its findings to the government.

The government would hold off on issuing a pre-operating licence to Lynas and bar imports of raw materials to be processed at the facility until the panel reported its findings, Mustapa said at a news conference.

Officials will also carry out stricter monitoring of the facility's construction to ensure that international safety standards were met.

Lynas welcomed the review and pledged to continue working with Malaysian authorities to ensure the project meets international norms.

The company "is confident the review will reconfirm that the plant is safe and represents no hazard to the community or Lynas workers," it said in a statement.

Rare earths such as super-magnet dysprosium and red-glowing europium are vital components in hard-drives and computer screens, while the metals are also pivotal in making laser missile systems and solar panels.

The plant, which is due to come online in the third quarter of this year, will refine raw materials extracted from Western Australia.

World attention has shifted to Australia's nascent rare earths industry after China, which dominates global production, began restricting exports, sending shudders through major consumers Japan, Europe and the United States.

In December, the United States called on China not to use rare earths as a "trade weapon" after Japanese industry said Beijing temporarily cut off exports in 2010 amid a territorial row.

China, which produces more than 95 percent of the world's rare earths, has denied any political motivations, insisting the restrictions on exports were due to environmental concerns and the need for a more sustainable approach.

Malaysia appoints safety panel to allay fears of radioactive pollution
Melissa Goh Channel NewsAsia 22 Apr 11;

KUALA LUMPUR: Malaysia has appointed a panel of independent experts to review safety standards at a rare earth factory in the east coast state of Pahang, as an attempt to allay public concern over the threat of radioactive pollution.

In January 2008, the Malaysian government awarded Australian miner, Lynas Corporation, licence to operate a rare earth processing plant at Gebeng industrial estate in Kuantan, Pahang.

However, now that the US$230 million facility is almost ready, residents are raising concerns about their backyard becoming a dumping ground for radioactive waste.

A protest, staged last month, called on the government to shut down the refinery before it starts operation in September.

Bowing to pressure, the government set up a panel of up to seven independent experts to review safety standards.

"Let me assure you, that the safety of the people has the the highest priority of this people-first government, the government of Malaysia. We will never compromise the public interest in handling the Lynas issue,'' said Mr Mustapha Mohamed, Malaysia's Minister of International Trade and Industry.

The Minister said no pre-operational license will be issued, neither will there be any import of radioactive raw material from Australia, before the review is completed.

The panel, led by Director General Raja Abdul Aziz Raja Adnan, will also seek advice from the International Atomic Energy Agency.

"There's no known study to show that naturally occurring radiation does cause congenital abnormalities, or cancer, or anything we know of," said Mr Raja.

"And, therefore, like any technology, nuclear technology is just like that - the benefits will have to outweigh the risks," he added.

However, critics fail see how Malaysia will benefit from such investment, since the Australian mining company Lynas was given a 12 year tax break by the government.

Lynas defended the refinery in Gebeng as being environmentally safe.

Once operational, it is expected to meet almost one third of the world's demand, excluding China which produces more than 95 per cent of global supply.

Rare earths are essential in the manufacture of hybrid cars, smartphones and bombs.

Authorities face an uphill battle to explain to the people, why the plant is needed.

"You don't use your handphone? You don't use your iPad? What do you think goes into these things?" said Ms Rebecca Fatima Santa Maria, Malaysia's Secretary General.

The independent panel is expected to deliver its findings after one month.

- CNA/cc

Malaysia to review rare earths project
Independent panel to probe health, safety aspects because of radioactive pollution risks
Straits Times 23 Apr 11;

KUALA LUMPUR: Malaysia said yesterday it will review a plan by Australian miner Lynas to build a rare earths processor in the country because of radioactive pollution risks, a move that may delay output of the metals outside top producer China.

Trade Minister Mustapa Mohamed said an independent panel will be set up to review the health and safety aspects of the Lynas rare earths plant in the central state of Pahang. The panel would have one month to investigate and submit its findings to the government.

'Let me assure you that the safety of the people has the highest priority,' Mr Mustapa told a news conference. 'We will never compromise the public interest in the handling of the Lynas issue, and the health and safety of our people and the environment will continue to receive the highest priority.'

Mr Raja Abdul Aziz Raja Adnan, director-general of Malaysia's Atomic Energy Licensing Board, said the review panel would likely comprise five to seven experts recognised by the International Atomic Energy Agency.

Lynas said it welcomes the announcement, adding that it believes the plant will be finished on schedule. 'The company is confident the review will reconfirm that the plant is safe and presents no hazard to the community or Lynas workers,' it said in a statement.

The move comes after growing public pressure to scrap the plant, which is expected to start operations in the third quarter of this year. Environment activists said it could make Malaysia a dumping ground for radioactive by-products from the refining process, creating health risks.

A similar facility built by a Japanese firm in another part of Malaysia was forced to shut down in 1992 because of protests.

A senior Lynas official told Reuters last month that the firm expected to get the pre-operation licence by September and that it adhered to all government regulations. Malaysia's Department of Environment had approved the Lynas project in 2008.

However, the government would now hold off on issuing the licence and bar imports of raw materials to be processed at the facility until the panel reported its findings. There would also be stricter monitoring of the facility's construction to ensure that international safety standards are met.

Lynas' Malaysia plant was supposed to process rare earth concentrate shipped in from the firm's Mount Weld site in Western Australia.

The strategy would make Lynas a key global supplier after top rare earths producer China last year imposed export quotas to retain resources.

Company officials said annual output from the Malaysian plant would hit 22,000 tonnes, meeting roughly a third of total global demand outside China by 2013. Lynas has described the facility as the largest of its kind in the world and the plant is set to be one of the few sources of rare earths - used in everything from wind turbines to computer screens - outside China.

ASSOCIATED PRESS, AGENCE FRANCE-PRESSE, REUTERS