Press statement on 28th June 2014 by SMSL on impending renewal of Lynas’ operating license by AELB.
SMSL strongly urge the Government and the Ministry of Science, Technology and Innovation (MOSTI) NOT to extend or renew Lynas’ Temporary Operating License (TOL) which is due to expire on the 2nd September 2014!
Lynas has failed to disclose to the public the identification of the site for the Permanent Deposit Facility (PDF) for its radioactive Water Leach Purification (WLP) waste as required under the terms of its TOL!
The regulatory authority AELB, in granting the TOL to Lynas stated that Lynas needs to fulfill the above condition 10 months after it commenced operations.
On the eve of the dateline, it claimed to have submitted the proposal to the relevant ministry, but the Minister concerned refused to reveal the site proposed. The then Ketua Pengarah of AELB Dato’ Raja Abdul Aziz said on record that Lynas only submitted a ‘conceptual’ plan of the PDF and not the site! We would like to remind both Lynas and the government that the ‘wastes’ ARE REAL while the PDF plan submitted by Lynas remains a concept!
Lynas claimed that they are able to recycle all solid wastes into industrial products thus not requiring a PDF!
Till this day it has NOT revealed how they propose to do that; neither has it produced any research papers for the public to evaluate the validity of its claims!
To recycle the THOUSANDS of tons of its solid wastes annually, Lynas needs to set up a recycling plant the size of which will be the equivalent of if not bigger than its present processing facility!
This will involve a large input of funds to get it set up and make it operational! Given Lynas’ present state of financial status, it will not be able to walk its talk! This will render Lynas’ claim a bluff and the people of Balok, Kuantan and greater Kuantan will eventually be left holding the toxic legacy, courtesy of Lynas!
Lynas is required to deposit with the government a total sum of 50 millions USD in 5 years as security. It had asked and obtained an agreement from the MOSTI to stretch the payment to 7 years with a mere 6.05 millions being collected in the first year of its operations. This raised a grave concern on whether Lynas will be able to honour its pledge to the government to remove the waste including shipping them overseas if it failed to utilize it for recycling!
The radioactive waste left behind by Asian Rare Earth is still undergoing a cleanup operation costing no less than USD $100 millions. Should there be a foreclosure for LAMP, with the meager sum of USD $ 6.05 million collected from Lynas, the people of this country will be burdened with the costs of cleaning up the toxic waste left behind by Lynas!
Lynas had to resort to rights issue of its shares to its shareholders to pay for the second quarter’s operations. In the words of a financial analyst “It’s almost a stay of execution,” UBS AG analyst Jo Battershill said.The government should take cognizance of this fact and refuse to extend or renew Lynas operating license.
We reiterate here that Lynas had not fulfilled the various terms under the Temporary Operating License. The license was issued on the ground that it will enable the AELB to collect operational data on the wastes produced to validate Lynas’claims. We had on our part done some data gathering and compilations. We demand that AELB release all the data collected since day one of Lynas’ operations failing which it will only prove that the AELB is incapable of playing its regulatory role! Under the circumstances the government should not extend or renew Lynas’ operating license!
We had sent appeal letters to the AELB and the Mosti Minister in May 2014 urging them not to extend or renew Lynas’ operating license! In the letters we submit that we have found new evidences that will enable them to deny Lynas the renewal of the license. They had acknowledged receipt of our letters through AR letter acknowledgement cards. Till this date they had yet to reply!
We wish to remind the government and the MOSTI that they are elected by the people to safeguard the interest of the people and the nation. By not considering the facts laid before them as tabled above, they shall be held accountable to the future generations of this country and we shall do whatever that is necessary to ensure that our children and great-great grand children shall not be burdened with the tasks of a clean up like the Bukit Merah case.
We repeat: Until and unless all conditions are complied with under the TOL, the government should NOT extend or renew Lynas’ operating license!"