Lynas Corp. Ltd. (LYSCF)

[wunram]

Lynas receives ‘conditional’ licence to operate

PETALING JAYA: The Atomic Energy Licencing Board (AELB) and the Science, Technology and Innovation Ministry (Mosti) have granted Lynas Corp its long awaited temporary operating licence (TOL) for its rare earth plant in Gebeng.

In a joint media statement this evening, AELB and Mosti said that the decision was made after taking into consideration public views and feedback on Lynas’ application permit.

The 300-page document was displayed for public viewing for three weeks beginning January 3 at various locations in Selangor and Pahang.

According to AELB, 334 people viewed the documents and 1,123 feedback forms were submitted as of January 26. The Board met on Monday where the decision to award the TOL to Lynas was made.

“The awarding of the TOL is subject to a number of conditions and will be suspended or revoked if those conditions are breached,and a reapplication will not be entertained,” said the statement.

“In addition to that, the residue management for as long as Lynas is under the TOL is the sole responsibility of the company which includes returning the residue to its original source if necessary.”

Conditional approval

AELB and Mosti have set out five conditions for the Lynas Advanced Materials Plant (LAMP). The first is that Lynas must submit all details of the Permanent Disposal Facility (PDF).

Second is for the plan and location of the PDF to be submitted regardless of the findings from research and development, commercialization, recycling and reuse of the residue.

Third is for the plan and location of the PDF to be submitted and be granted approval during the duration of the TOL and not exceeding 10 months from the licence awarding date.

Fourth is for Lynas to adhere to the terms of financial guarantee under the relevant laws and according to the recommendations made by Lynas (M) Sdn Bhd that US$50 million (RM150 million) be paid in installments to the Malaysian government.

And finally the Board has the right to elect an independent consultant to assess Lynas’ adherence to the standards and regulations that have been set. The cost of this consultant will be borne by the license.

Lynas last week announced that it has raised US$225 million (RM700 million) in bonds to complete Phase One of the plant and will be delaying operations to the second quarter of the year.

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