Lynas Corporation has pledged to cooperate fully in Putrajaya's review of the company's operations in Gebeng, despite questioning the need for such a process.
In an open letter, Lynas CEO Amanda Lacaze said that the company has been producing high-quality rare earth materials in the six years since it commenced operations, as independent monitors have confirmed.
"We are compliant with our licence conditions, and we work closely with Malaysian regulators to identify ways to continuously improve our operations.
"As the only miner and producer of rare earth products outside China, Lynas Malaysia is an important supplier to many industries, including the automotive, electronics, oil and gas, and renewable energy industries.
"Our key customers are in Japan, Europe and North America, all important trading partners of Malaysia," she stressed.
Nonetheless, Lacaze questioned the need for Putrajaya to review the company's operating licence, particularly since that the review committee would be chaired by someone with a known "anti-Lynas" stand.
"From media reports, this person has been quoted as stating it will not be an independent review.
"To date, Lynas has seen media reports about this review committee. However, we have not been notified of the membership of this review committee, the scope of the review or the terms of reference of this committee."
Last month, it was reported that the Energy, Science, Technology, Environment and Climate Change Ministry would be establishing a committee to review Lynas' operations.
Kuantan MP Fuziah Salleh, who has been a vocal critic of Lynas since the project was first mooted in 2008, was appointed to chair the committee.
Lacaze reiterated, however, that Putrajaya has an absolute right to conduct the review, and called for the committee to be fair and objective.
"We also know the Malaysian government and the people of Malaysia expect high standards of fairness and openness in all aspects of public life, as seen in other recent initiatives of the new government.
"On behalf of everyone at Lynas, I am appealing to the government to apply those same high standards – to be fair and just and to be objective and scientific – in any review of Lynas Malaysia," she said.
Cooperation welcome
In an immediate response, Fuziah (photo) said the government welcomes Lynas’ intention to cooperate with the review process.
On Lacaze's concerns over the independence of the committee members, Fuziah said that the chairperson and members of the committee are appointed by the energy minister, and would be representing the government in this review.
She also reassured that the review on Lynas will be guided by Pakatan Harapan's framework of sustainable development and investments.
"Central to the review will be the Radioactive Waste Management Plan (RWMP) since the radioactive waste is a very pertinent issue to be deliberated by the committee from the perspective of sustainability and sustainable development.
"Apart from the RWMP, the committee will also be looking into other aspects of safety such as health impacts, social impacts as well as environmental impacts," she said in a statement today.
The other aspects that will be taken into consideration, she added, include reports from previous review committee such as the Parliamentary Select Committee, as well as recommendations by the International Atomic Energy Agency (IAEA).
On the review process, Fuziah said the committee welcomes Lynas’ suggestion that the hearing is made open to the public.
Responding to reports on the proposed review, the Malaysia-Australia Business Council (MABC) yesterday said that any review into Lynas Corporation's operations in Gebeng should be public, transparent and objective so as to not damage investor confidence in Malaysia.
