Lynas withdraws court challenge over operating conditions

Lynas has officially withdrawn its judicial review over its operating conditions in Malaysia after the firm obtained renewal to import and process rare earth until 2026.

The Kuala Lumpur High Court this morning recorded the withdrawal after the firm’s counsel Cecil Abraham informed judge Wan Ahmad Farid Wan Salleh that Lynas and the government had achieved an agreement to the terms of the order.

Last week, Lynas indicated its intention to withdraw the legal action, following the Science, Technology and Innovation Ministry renewing the company’s operating licence until March 2026.

When contacted, the government’s counsel, senior federal counsel Sallehudin Md Ali, confirmed the outcome, adding that the civil court made no order as to costs.

Sallehudin is acting for the two respondents - the ministry and the Atomic Energy Licensing Board (AELB).

Previously, Lynas said the legal challenge was filed to quash the conditions barring the import and processing of lanthanide concentrate after Jan 1 next year.

“The licensing conditions which limit operations at the Lynas Malaysia facility represent a significant variation from the conditions under which Lynas decided to invest in Malaysia,” it said in a statement.

“Further, the conditions do not follow the recommendations of the Malaysian government’s 2018 executive review committee report on Lynas Malaysia’s operations, the AELB’s own audits of Lynas Malaysia’s operations or any of the other three prior independent expert scientific reviews of Lynas Malaysia’s operations,” it added.

Lynas said the legal action targets the decisions made by Science, Technology and Innovation Minister Chang Lih Kang, who dismissed the company’s two appeals.

On May 9, Free Malaysia Today reported Chang as saying he would not change his decision to deny Lynas’ appeal to remove the four licensing conditions imposed by the AELB.

The minister added that the six-month extension given to Lynas to continue cracking and leaching activities was final.

On April 28, the ministry held a closed-door tribunal to discuss the company’s appeal to remove the four conditions introduced in March 2020, which had barred the import and processing of rare earth elements.

The primary term is that Lynas must relocate the cracking and leaching of lanthanide concentrate to a location outside Malaysia and only refine intermediate materials at its facility in Gebeng, Pahang, by July 1 this year.

The appeal was over the licensing board’s earlier refusal to remove the four conditions.

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