LYNAS Corp remained coy on the progress of its engagement with Putrajaya with regard to its appeal on the government’s conditions on management of water leached purification (WLP) residue and the renewal of its operating licence.

“We reiterate our position that the current licence conditions are consistent with international best practices and ensure the safety of our workers and communities and the environment. We have always been transparent about the safety of our operations and will continue to do so,” Lynas Malaysia managing director Mashal Ahmad said in response to The Malaysian Insight’s queries without elaborating further.

The rare earth mining company said in a filing with the Australian Securities Exchange (ASX) on February 28, its full operating stage licence in Malaysia is due for renewal on September 2.

However, the Atomic Energy Licencing Board (AELB), which is a unit of the Energy, Science, Technology, Environment and Climate Change Ministry, imposed two new preconditions for the renewal via a letter dated December 4, 2018.

According to the letter, Lynas is required to export stored WLP residue before September 2.

In addition to that, it is also required to submit an action plan on the disposal of neutralisation underflow residue (NUF).

“Lynas Malaysia has filed an appeal pursuant to the Atomic Energy Licencing Act 1984 in respect of the AELB letter, dated December 4, 2018, requiring WLP to be exported as a precondition to the renewal of Lynas Malaysia’s operating licence,” it said.

Lynas said the WLP is currently stored in temporary storage facilities onsite at the Lynas advanced materials plant in Gebeng. It said the storage is in accordance with the current licence.

The terms of the existing licence state that WLP residue should be recycled, and if that fails, stored in a permanent disposal facility.

Export of WLP is only to be considered if recycling nor permanent disposal are possible.

The group noted in the stock exchange filing that “there is an agreed pathway for the disposal of NUF” following extensive consultation with the Malaysian government and regulators.

“An updated NUF action plan has been submitted as required, which includes commercialisation options for NUF and a long-term NUF disposal solution.

“Exporting the volume of WLP presently onsite within the timeframe mandated by the AELB is unachievable. Lynas continues to engage with the Malaysian government to agree to a basis upon which Lynas will achieve a renewal of its operating licence.”

It said while its framework and site selection plan for permanent disposal facilities were approved by the AELB on February 25, 2014, the Pahang state government has also given its consent to the location of such a facility in Pahang, should it be required.

A review committee to assess the company’s compliance with terms of its operating licence and overall operations was formed after Pakatan Harapan took over Putrajaya.

According to Lynas, the formal report released by the committee on December 4 found the company’s operations as being low-risk and compliant with all applicable laws and the terms of its existing operating licence.

The stock closed at AUD$1.59 (RM4.60) on the ASX today with 665.8 million shares traded. Its market capitalisation stood at AUD$1.06billion.

The Malaysian Insight’s attempts to get the comments of Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin were unsuccessful. – March 6, 2019.