PSC gives the nod to Lynas

KUALA LUMPUR: Australia's Lynas Corp is set to clear the final hurdle
for its delayed US$800 million rare earths plant after Malaysian
lawmakers asked the government to issue the miner a temporary operating
license despite community safety concerns.

The recommendations of a six-member parliamentary committee will be debated later today.

This
will clear the way for Lynas to operate the plant in east Malaysia that
is seen as key to breaking China's grip on rare earths used in products
ranging from Apple Inc's smartphones to Honda Motors' hybrid cars.

The
decision by the committee came after Malaysia last week dismissed an
appeal by residents to scrap the plant on concerns of radiation leakage.

The
Lynas plant, set to be the biggest in the world outside China, has been
standing ready to fire up since early May, but the company has been
embroiled in lengthy environmental and safety disputes with local
residents.

The MPs today said awarding the license would help
the US$800 million factory start processing rare earths in stages and
recommended for a committee of NGOs and experts to keep track of the
plant.

"The committee is satisfied the Lynas Advanced
Materials Plant (LAMP) has met all the necessary standards and laws in
Malaysia," the report said. "Even so, there have been legal
requirements and standards imposed on the LAMP project that were more
stringent than international standards."

The 100-page report
said while Lynas had met safety, health and environmental standards, an
additional 31 recommendations will be tabled in what appears to be
concessions to public concerns over the plant's safety aspects.

Key
among them is a recommendation Lynas has to ship out factory waste from
Malaysia if it is unable to find an approved storage and recycling site
— a sticking point for green groups, opposition parties and local
residents.

"The committee wants to inform that Lynas
Corporation and Lynas Malaysia have written letters expressing their
commitment to removing LAMP residue from Malaysia," the report said.

Lynas
has said demand is so strong that it has locked in customers for all
the rare-earths it can process in the first 10 years of operations. --
Agencies