The Atomic Energy Licensing Board (AELB) has approved the temporary operating licence (TOL) for the controversial Lynas Advanced Materials Plant in Gebeng, Kuantan.


 According to the board&rsquo;s executive secretary in a statement today, a meeting convened on Jan 30 scrutinised the documents submitted to the AELB has come up with a decision to approve the TOL application.


 The licence will allow Lynas to start operating the plant, which is already near completion, for an initial two years under strict supervision from the authorities and with certain limitations on production capacity.


 The approval however came with five conditions which Lynas is expected to comply:


 <ul>
 <li>
 Total disclosure of the Permanent Disposal Facility (PDF).
 </li>
 </ul>
 <ul>
 <li>
 The plans and location of the PDF must be submitted regardless of what the waste will be eventually used for.
 </li>
 </ul>
 <ul>
 <li>
 Plans and location of PDF must be submitted and approval to be granted within licence period.
 </li>
 </ul>
 <ul>
 <li>
 Lynas to pay a US$50 million financial guarantee to the Malaysian government.
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 </ul>
 <ul>
 <li>
 AELB has the right to appoint independent consultants at Lynas&rsquo; expense to ensure compliance.
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 </ul>


 <img align="left" alt="NONE" height="290" src="http://mk-cdn.mkini.net/379/6f543e898269a352738f92c36e83ee24.jpg" width="224"/>
 Lynas is building the facility in Pahang, which is set to become one of the few sites outside China to process rare earths - metals used in high-tech equipment ranging from missiles to mobile phones.


 The company has insisted the plant, which will process rare earths imported from Australia, will be safe, but critics say radioactive waste could leak out, threatening the public and environment.


 Processing work was originally set to start in the third quarter of 2011.


 Thousands of opponents of the plant held a protest against it in October in Kuantan, about 18km from the plant site.


 
 
 Safety concerns as contractor pulls out
 
 


 The approval came despite news that the RM2.5 billion plant could face new health and safety concerns following the withdrawal of key contractor, Dutch firm AkzoNobel, from the project.


 According to the
 
 New York Times
 
 (
 
 NYT
 
 ) today, the chemical company had pulled out from the project and this was confirmed by Lynas Corporation chairperson Nicholas Curtis.


 AkzoNobel supplies important resins that function as a glue for dozens of fibreglass liners for concrete-walled tanks that can withstand heat and corrosion.


 Rare earths with low levels of radioactive contamination measuring hundreds of tonnes is mixed in the tanks with extremely corrosive acids at more than 90 degrees Celcius.


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 Corrosion at high temperatures makes the acids ideal in dissolving the ore. However, this method is reportedly unstable.


 &ldquo;The company said last spring that it would supply chemicals for the Lynas project only if it were certain that it would be safe,&rdquo;
 
 NYT
 
 reported.


 &ldquo;Engineers involved in the project and internal emails showed that AkzoNobel withdrew from supplying the chemicals after it was told that the fiberglass liners would be installed in concrete-walled tanks that have a problem with rising dampness in the floors and cracks in the walls.


 &ldquo;AkzoNobel had been in discussions about the problem of rising dampness, but only became aware of the cracks recently.&rdquo;


 The report states that engineers, who requested anonymity, felt it was their professional duty to voice the safety concerns.


 AkzoNobel in an email response to
 
 NYT
 
 said that it was no longer supplying the resins to the Gebeng Lynas project and gave only a brief explanation.


 &ldquo;Due to changes in the project specification, AkzoNobel would only recommend the use of its linings on the project subject to the successful results of longer-term testing,&rdquo; the company said in response to queries.


 &ldquo;That testing cannot be completed within the current project time scale.&rdquo;


 Curtis insisted that the withdrawal of AkzoNobel was not over safety reasons. He said Lynas had found a new supplier for the resins but declined to name the company.


 Curtis also gave his assurance that the separation tanks and piping at its Gebeng plant were safe and meet international and Malaysian standards.

The Atomic Energy Licensing Board has approved the TOL for the controversial Lynas Advanced Materials Plant in Gebeng, Kuantan.


Gov't okays temporary operating licence for Lynas

~RM12

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