An Australian mining company that is building
a rare earth plant in Pahang, the third largest state in Malaysia, is accusing
groups opposed to its plans of making "inaccurate" and "highly
defamatory" remarks about it.
The
accusations came in a lawyer's letter from the mining company Lynas to Save
Malaysia Stop Lynas (SMSL), said Mr Tan Bun Teet, a spokesman for the
non-governmental organisation (NGO).
Lynas
has been on the receiving end of criticism from such NGOs for months. They
claim that the 700 million ringgit (US$288 million) plant would cause
environmental and health problems for residents, despite reassurances from the
company and the authorities.
Another
anti-Lynas group, Himpunan Hijau, has said that it will hold a rally in Kuala
Lumpur on April 28 - a follow-up to its recent gatherings in Pahang. A separate
protest to push for electoral reforms by a group called Bersih 3.0 will be held
there the same day.
SMSL
wrote an open letter to Prime Minister Najib Razak two weeks ago alleging that,
among other things, the plant owners had "no real experience"
processing rare earths, there were serious construction problems at the plant,
and that its waste contains hazardous substances.
SMSL's
letter, which was endorsed by more than 40 other NGOs, urged Datuk Seri Najib
to suspend the temporary operating licence issued to Lynas, and to stop
shipments of rare earth ore concentrate into Malaysia.
Lynas'
legal letter of demand, however, takes issue with these criticisms. The letter,
which was partially published online by one of the NGOs, said that Lynas'
senior management has extensive experience in operating rare earth plants.
It
added that there were "no serious construction issues" and that
independent reviews of the plant confirmed it to be safe. It said it had not
"glossed over problems or covered up defects", as alleged by the
NGOs.
The
letter came from a law firm, Jeff Leong, Poon & Wong. Mr Tan received it on
March 31. The firm could not be contacted for comment yesterday.
Mr Tan
said that Lynas is asking for a published apology and a retraction of his
group's statement.
SMSL's
lawyers have written back asking for more time while it meets the other NGOs to
decide on the next course of action. Mr Tan said that they plan to hold a press
conference on April 16 to announce their next move.
The
rare earth plant in Pahang, if it goes into operation, could break China's hold
on the world market of rare earths, a metal crucial in the manufacture of
high-end consumer products such as smartphones and LED television sets.
Bernama
yesterday reported that Australia's High Commissioner to Malaysia Miles Kupa
has asked that Lynas be given a "fair go", as long as the rare earth
mining company complied with local laws and requirements.
"What
we really ask is that they be treated fairly, objectively, that their plans are
not disrupted by political factors, and indeed that they get a fair go... so
long as they do respect the local regulatory requirements, and that's what we
expect of Australian companies," he said in an interview with ABC radio.
Teo
Cheng Wee
The
Straits Times
Business & Investment Opportunities
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