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Published: Wednesday February 22, 2012 MYT 6:06:00 PM

Independent unit for construction audit at Lynas, says Govt


KUALA LUMPUR: An independent monitoring unit will be formed to undertake a construction audit at the Lynas Corporation's rare earth refinery plant in Gebeng, Pahang to ensure compliance to all standards imposed by the appropriate and relevant professional bodies, the Malaysian government said today.

It said even though the Atomic Energy Licensing Board (AELB) announced its decision to award a Temporary Operating License (TOL) to Lynas (M) Sdn Bhd on Feb 1, 2012, the issuance is subject to the company fulfilling five conditions.

One condition is for Lynas to submit to AELB details of the plans and location of a proposed permanent disposal facility that will manage the residue, if any, generated by the factory.

The submission must be made within 10 months from the date the TOL is issued.

"This requirement must be complied with regardless of any alternative proposal Lynas may make for the management or disposal of the factory residue (e.g. recycling, conversion into products that can be sold, etc.)," the government said through a joint ministerial statement by four ministers whose portfolios are directly associated with Lynas' applicatin to set up and operate the plant.

The ministers are International Trade and Industry Minister Datuk Seri Mustapa Mohamad; Science and Technology Minister Datuk Seri Maximus Johnity Ongkili; Energy, Green Technology and Water Minister Datuk Seri Douglas Uggah Embas; and Health Minister Datuk Seri Liow Tiong Lai. Other conditions stipulate Lynas must agree to provide a US$50 million security deposit to the government, with AELB having the right to appoint an independent expert assessor to evaluate Lynas' compliance with the safety and good practices requirements.

"Any Permanent Disposal Facility (PDF) proposed by Lynas shall be located remotely and away from populated areas. "All residue and waste water shall be fully treated meeting stipulated standards prior to discharge. There will be zero discharge of industrial waste water," the statement said.

It added that the government will continue to engage in a transparent and open manner.

"We have done so at every stage of this engagement by inviting the International Atomic Energy Agency (IAEA) to provide us with an independent assessment of the situation, by offering opportunities for public comment and feedback in the case of the IAEA visit and most recently, the public display of Lynas documents.

"We would like to encourage all concerned parties to visit the Lynas plant site and Lynas should do the necessary to facilitate this," the statement said.

It also said that the government is constantly listening to public views and will continue to address the concerns of the people. - BERNAMA

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