RARE earths mining firm Lynas has been granted a three-year extension to operate at Gebeng in Pahang until March 2, 2026, the government announced today.

Science, Technology and Innovation Minister Chang Lih Kang said in a press conference that the extension was granted under strict conditions to ensure safe operations.

The government, however, has rejected Lynas’ application to drop four preconditions under the licence terms in relation to the management of radioactive waste in Malaysia after July this year.

It had also wanted to import lanthanide concentrate from Australia.

Chang said Lynas must abide by the licence terms, failing which it would be revoked.

“I’m very sorry to hear about (Lynas’) disappointment, but the terms that were set (by the government) are nothing new. These were already required under the previous operating licence that was approved in March 2020.

“They are well aware of it and I do not know why they felt disappointed,” he said.

He was referring to Lynas Rare Earths Ltd chief executive and managing director, Amanda Lacaze, who voiced her disappointment over the conditions set for the firm’s operating licence.

Lacaze said the latest renewal of Lynas’ operating licence was its sixth and the four licences granted prior to 2020 did not include the said conditions.

“While these conditions do not come into effect until July 1, they are inconsistent with the conditions upon which Lynas was invited to invest in Malaysia and the recommendations of four independent scientific reviews, each of which has found our Malaysian operations to be low-risk and compliant with regulations,” she said in a statement.

Previously Chang was reported as saying that Lynas had been informed of the decision by the Atomic Energy Licensing Board, where its request to drop four conditions related to cracking and leaching activities, the generation of water leach purification residues and the importation of lanthanide concentrates from Australia was not considered.

This meant Lynas would no longer be allowed to carry out activities that would produce radioactive waste in Malaysia after July 2023.

Its current three-year term operating licence is set to expire in March.

Lacaze had responded by saying that Lynas would proceed with administrative and legal appeals to ensure that the firm was treated fairly and equitably as a foreign direct investor and a significant employer and contributor to the Malaysian economy. – February 15, 2023.