THE government has agreed to extend rare earths producer Lynas Malaysia’s licence until the end of the year, Science, Technology and Innovation Minister Chang Lih Kang said today.

He said the extension will allow Lynas’ cracking and leaching (C&L) plant in Gebeng, Kuantan, to continue operations until December 31.

“Effective January 1, 2024, Lynas needs to ensure that its C&L plants abroad start operating and it is no longer allowed to import raw materials containing natural radioactive materials into Malaysia,” he said in a statement today.

Chang, who is the Tanjong Malim MP, said the  decision was made after taking into account the economic interests, environmental protection and public health.

“The Malaysia Madani government understands the importance of the rare earth industry and is committed to ensuring that any business dealings carried out related to this industry do not have a negative impact on the environment and the local population,” he said.

“Therefore, this decision was taken after careful evaluation, based on the principles of sustainability, development and safety.”

Based on section 32(5) of the Atomic Energy Licensing Act, the decision made by the minister is final, he said.

Last night, Prime Minister Anwar Ibrahim confirmed that Lynas had been granted an extension under conditions that must be strictly adhered to.

The ministry has convened a closed-door tribunal on April 28 to discuss the Lynas’ appeal to remove the four conditions introduced in March 2020, which prohibit the import and processing of rare earth elements.

The primary condition is that Lynas must relocate the cracking and leaching of lanthanide concentrate to a site outside Malaysia and only refine intermediate materials at its facility in Gebeng by July 1.

An application to remove the four conditions was turned down by the licensing board, resulting in the April 28 appeal, which is seen as a last-ditch attempt to ensure the company can continue its operations at its Gebeng plant.

The Malaysian plant accounts for half the world’s rare earth supply outside China.

The company has said it would temporarily close its plant in mid-July if the licensing conditions remain unchanged.

Rare earths are used to make electronic equipment, batteries, super magnets and other sophisticated equipment. – May 8, 2023.