KUALA LUMPUR, March 6 ― Rare earth mining company Lynas faces challenges in exporting waste stockpile from its Advanced Material Plant (LAMP) facility, based on a report by the New Straits Times.
The English news daily cited a report from Lynas’s head office in Australia that they are having trouble in clearing its waste stockpile by September 2, which also when its licence is due for renewal.
Last year in December, the Ministry of Energy, Science, Technology, Environment and Climate outlined two preconditions for Lynas that would be required before renewing permits or licences in the future.
One of the conditions is that the accumulated Water Leached Purification Residue residue (WLP), which contains radioactive materials, must be removed from Malaysia; the existing temporary storage licence expires on September 2, 2019.
In a note to its shareholders, Lynas said they have appealed against the pre-condition to clear its waste stockpile and cited it had “reasonable confidence” that a solution would be achieved.
Lynas managing director Datuk Mashal Ahmad also stated that the company is working closely with the government to find a solution to the matter.
“The company continues to work with the government to find a path forward.
“Lynas has always maintained that the current licence conditions are consistent with international best practice and ensure the safety of the Malaysian environment and people,” he said.
In a report by the Sydney Morning Herald today, Lynas chief executive officer Amanda Lacaze advised enterprises to take heed of sovereign risk factors which could affect their overall businesses.
“Sovereign risk has increased all over the world and for any business, concentration of your asset base is more risky than it was even five years ago,” she said.
The report also pointed out that the company's own half-year results by its auditors stated that political trouble in Malaysia threatens the future of the entire company, citing it has “material uncertainty” about whether the rare earth processor would be able to gain a licence to continue operating in the country after September 2 “and in that instance whether the group would be able to continue as a going concern”.
There are two primary types of residue produced by Lynas’s LAMPs in Gebeng, Pahang: the WLP and Neutralisation Underflow Residue (NUF).
The permit to store NUF waste expires on February 15 next year.
