THE government is not shutting down Lynas Malaysia Sdn Bhd’s (Lynas) operations, but the company will not be allowed to carry out cracking and leaching activities in the country after December 31, Science, Technology and Innovation Minister Chang Lih Kang said.

He said the decision to allow the factory to carry out cracking and leaching activities for another six months is to avoid affecting the supply chain of rare earths at the global level.

Besides, the extension is also to give Lynas time to complete the company’s cracking and leaching plant in Australia, which is still under construction.

“Their plant in Kalgoorlie, Western Australia is almost ready and the extension of this period takes into account if they cannot complete (the plant) before July,” he told reporters after the closing ceremony of the NGO@Makerthon Programme at the Muhibbah Community Complex in Kuala Lumpur today.

Previously, the ministry announced that Lynas’ appeal against dropping four licensing conditions set by the Atomic Energy Licensing Board was rejected after a hearing was held on April 28.

On Sunday, Prime Minister Anwar Ibrahim confirmed that the government had given Lynas an extension of six months to allow the company to meet the licensing requirements to operate in the country.

On the NGO@Makerthon programme, Chang said it aims to improve the socio-economic status of 20 People’s Housing Project communities by continuously empowering science, technology, innovation and economy knowledge among them. – Bernama, May 9, 2023.