Malaysia’s decision to renew rare earth miner Lynas’ operating licence could come back to bite ruling coalition

Malaysia renewed the operating licence of the Australian rare earths miner for another six months, despite an outcry from environmentalists

But several politicians had promised while in opposition that they would boot out the miner, which could lead to consequences in future polls

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The entrance to the Lynas plant in Pahang, Malaysia. Photo: Reuters

Published: 11:00am, 1 Sep 2019Updated: 9:54pm, 1 Sep 2019

After months of uncertainty, Australian miner Lynas looks set to continue running its rare earths refinery operations in Malaysia with the government’s approval, potentially making it the biggest producer of rare earths ore after China, which controls almost all of the world’s supply.

But the Malaysian government’s decision to renew Lynas’ operating licence, despite fervent resistance from environmental activists and lawmakers, may come with consequences: booting out the miner was a promise made by several politicians years prior, and one of several the government has reneged on out of supposed necessity.

Prime Minister Mahathir Mohamad earlier this week said the controversial miner could not be turfed out as it was “a big investment”.

“It has created 700 jobs, high quality paying jobs. It is necessary for our investment. If you treat Lynas like a pariah, and ask them to leave this country, we will not get other people to come to this country to invest,” he told media on Monday.

A Lynas worker in Perth walks past sacks of rare earths concentrate waiting to be shipped to Malaysia. Photo: Reuters

Lynas’ progress in Malaysia is being keenly watched because of questions surrounding the sustainability of the global rare earths supply following speculation that these elements could become the next bargaining chip in the US-China trade war.

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