PUTRAJAYA is prepared to challenge any legal action from rare earth producer Lynas following the government’s imposition of tougher conditions for the renewal of its licences, said Yeo Bee Yin.

The Australian company had yesterday said it was considering “legal options” after Putrajaya ruled that all radioactive waste must be removed from the country as part of conditions for the renewal of its licences due next year.

“Why do they want to sue us? We are not abusing our power. If we are sued for merely following the law to protect the interest of the people, we are prepared,” the energy, technology, science, climate change and environment minister said at the Parliament building today.

“I have just spoken to the attorney-general this morning. We are prepared for anything because everything we have done is in accordance with provisions of the law.

“Lynas cannot come here and try to teach us how to apply the laws of this country,” said the Bakri MP.

Lynas’ shares fell more than 22% in Sydney after the new terms were revealed late on Tuesday.

Its US$720 million (RM3 billion) Malaysian plant, which processes rare earths mined in Australia, has been criticised by environmental groups and residents who have warned that it produces dangerous radioactive waste.

Yeo said that the review committee report on the Lynas Advanced Material Plant (LAMP) in Kuantan had revealed that radioactive water leached purification (WLP) residue had been accumulating for six years at the company’s facility, and was exposed to the threat of natural disasters, such as floods.

Lynas responded yesterday by saying that its licence conditions stated that WLP residue should be recycled, and stored in a permanent disposal facility only if it is not recycled.

However, Yeo reminded the Australian company of its requirement to remove all radioactive waste from Malaysia, which now totals some 450,000 metric tonnes of WLP residue.

“There is no short-term solution to this issue, for the time being. What will happen if there is a big flood in that area? Who can assure the safety of the people in surrounding areas?” she said today.

“Lynas has stated its commitment in a letter from Lynas Corp Ltd from Australia and Lynas (Malaysia) Sdn Bhd to discard all waste from the company if needed. These are accumulated waste.

“They can find a solution to process the waste but, at the same time, it must resolve this problem of accumulated waste or will put those living in the area at high risk.” – December 6, 2018.