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Government announces independent monitoring unit for Lynas audit

February 22, 2012

Construction underway at the plant’s site in Gebeng, Pahang. — file pic
KUALA LUMPUR, Feb 22 — An independent monitoring unit will be formed for a construction audit of 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 government announced today.

Bernama Online reported that the government released a joint statement by four ministers whose portfolios are directly concerned with Lynas’ application to set up and operate the plant.

The ministers involved 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.

The statement said that although the Atomic Energy Licensing Board (AELB) agreed to grant a temporary operating license (TOL) to Lynas earlier this month, the issuance is subject to the company meeting five conditions.

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

The news portal quoted the statement as saying the disposal facility should be located “remotely and away from populated areas” and that “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 submission must be made within 10 months from the date the TOL was issued.

A second condition, meanwhile, stipulates that Lynas must agree to provide a US$50 million (RM150 million) security deposit to the government, with AELB having the right to appoint an independent expert assessor to evaluate Lynas’ compliance with safety and good practices requirements.

The statement also said the government plans to continue engaging the public in a transparent and open manner and that it “encouraged all concerned parties to visit the Lynas plant site and Lynas should do the necessary to facilitate this.”