Australian rare earths miner Lynas looks set for green light in Malaysia after months of doubt

Prime Minister Mahathir Mohamad says licence for Kuantan plant, which is critical to countering China’s grip on global supply, is dependent on finding solution for radioactive waste

However, economic pressures mean the project is expected to proceed despite protests by environmentalists

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A bastnaesite mineral containing rare earths at a laboratory. Photo: Reuters

Published: 8:16pm, 1 Aug 2019Updated: 10:03pm, 1 Aug 2019

After months of uncertainty, the Malaysian refinery of rare earths mining company Lynas looks set to have its operating licence renewed despite vehement pushback from lawmakers and activists – but the move is contingent on the Australian firm coming out with an effective waste disposal plan.

Prime Minister Mahathir Mohamad on Thursday said the permit, which must be reissued by September 2 if the company is to continue work, would only be granted on the condition that “Lynas has a plan”.

“We are waiting for them to tell us how they will do that, whether they have found a place where they can deposit the waste,” Mahathir said.

The Malaysian government’s decision on the miner is being keenly watched because of questions surrounding the sustainability of the global rare earth supply following speculation that these elements could become the next bargaining chip in the US-China trade war.

The Lynas plant at Kuantan, Pahang. Photo: Reuters

Lynas is responsible for producing about 13 per cent of a material used in high-strength magnets that are vital to the motors in electric vehicles, wind power generators and consumer electronics.

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