Penang Chief Minister Lim Guan Eng wants the federal government to shut down the Lynas rare earth plant to show it's appreciation for World Environment Day today.

Lim ( left ) said the government should close the plant instead of issuing a Temporary Operating License (TOL) or Permanent Operating License (POL) and scrapping the two proposed nuclear-power generating plants.

"Celebrate World Environment Day by putting people and not profits first by closing down Lynas rare earth plant," Lim said in a statement.

"A people-centric government that is accountable and transparent would never allow these projects that put profits of its cronies over people’s health without considering the long-term environmental costs,"

Lim reminded the BN-led federal government, describing as "horrifying", it's mistake of allowing the Japanese Asian Rare Earth (ARE) plant to operate in Bukit Merah.

Lim pointed out that after the plant was shut down, the former ARE owner is spending USD100 million (RM323.9 million) in clean-up operations of the radioactive wastes.

"In view of the possible closure of Lynas, which is 10 times the size of ARE, the radioactive waste left behind will be a huge environmental and financial burden for future generations, especially if Lynas collapses financially," Lim warned.

Lim said it is worse that the BN is pressing ahead with building two nuclear-powered generating plants even though Malaysia has a healthy power reserve margin of more than 30 per cent.

Lim asked Malaysian regulatory authority Atomic Energy Licensing Board (AELB) and the Ministry of Science, Technology and Innovation (Mosti) to explain whether they are approving the POL application by Lynas.

"They should explain following Lynas' financial crisis and non-compliance with the conditions stated in the two-year TOL, which is due to expire on Sept 2," he said.