Apr 8, 2012

Malaysia - Lynas slams critics of Pahang rare earth plant

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      

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