The company’s quarterly report says it understands the need to “do more” for Kuantan folk
KUALA LUMPUR: Lynas Corp intends to submit its safety plan to the government next month in order to obtain the licence that will allow it to continue work on its rare earth refinery in Gebeng, according to the company’s quarterly report, released yesterday.
The safety plan is one of the recommendations of a nine-man International Atomic Energy Agency (IAEA) panel that presented its findings late last month after reviewing the health and safety implications of setting up the controversial plant.
“Lynas has heard the community leaders and understands the company should do more for the Kuantan community,” the company report said.
It also noted that China’s rare earth export quota was down by 7% this year and that this would create higher demand from alternative suppliers.
China dominates the rare earth market, producing 97% of world supply. However, it has lately been restricting exports, prompting miners elsewhere to enter the rare earth game.
The RM700 million refinery in Gebeng, outside Kuantan, will be the destination point for the rare earth ore mined extracted from Western Australia’s Mount Weld.
Fears of radioactive contamination have caused sustained protests against the plan to build the refinery.
Rare earths are coveted for their use in a range of modern products, including hybrid cars, smartphones, iPads and flat screen television.
Lynas, which will enjoy a 12-year tax break, anticipates revenues of RM8 billion per year from 2013 onwards.