Govt facing court challenge over Lynas licence renewal


The government's decision to renew Lynas' operating licence for its rare earth plant in Kuantan, Pahang, is being challenged in a suit which named the prime minister, his cabinet, Lynas and Atomic Energy Licensing Board as respondents. – The Malaysian Insight file pic, January 17, 2020.

LEGAL action is being taken against the government to challenge its decision to renew Lynas Corp Ltd’s operating licence.

Reuters reported that three individuals filed the suit yesterday, naming Prime Minister Dr Mahathir Mohamad, his cabinet, Lynas and the Atomic Energy Licensing Board as respondents.

Lawyer Dinesh Athinarayanan, who represents the three, argued that only the minister in charge of energy can approve the licence extension as stated in the Atomic Energy Licensing Act.

“To allow the cabinet to make a decision or delegate powers to the cabinet is unlawful according to the Act,” Reuters quoted the lawyer as saying.

The government agreed to a conditional renewal of Lynas’ operating licence for its plant in Kuantan, Pahang, for a period of six months.

The conditions include building a cracking and leaching facility outside Malaysia within four years of the renewal and identifying a permanent disposal facility with approval from relevant authorities.

However, the move was met with derision from critics and activists, who say some of the conditions were the same ones that were given for Lynas’ initial operating licence, which the company still has not fulfilled.

They also said the rare earth plant is polluting its surrounding with waste, which were supposed to be disposed of properly as per conditions of the operating licence.

The court has set January 21 for case management. – January 18, 2020.



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