SMSL/PSHK Press statement on the 25th July 2014
Lynas Advance materials Plant’s (LAMP) Temporary Operating License (TOL) will expire by 3rd September 2014. It would have to cease operation if it is not renewed by then!
SMSL hereby urge the AELB, the regulating authority to consider the following facts before deciding on their application to renew the TOL:
1. Lynas has failed to identify the location for the PDF within 10 months of its operations as required by the AELB
2. It has failed to intensify its engagement with the local communities and provide them with adequate information relating to their operations as recommended by IAEA.
3.It has not shown nor provided any information regarding their proposals to recycle all their solid wastes.
4.Does Lynas have the financial capability in recycling the wastes? How do they propose to do it when they can’t even pay the security deposit of USD 10 million each year according to the original agreement!
5.They had to resort to issuing rights issues and institutional placement of loan to raise enough funds to last through the last quarter. Their share price had plunged to a record low of AUD 0.115 level just before the rights issue!
6.Lynas has a total borrowing of USD 440 million from two of their creditors and the next repayment of USD 35 million is due this 15th September. It is facing serious financial difficulties. With the continued depressed prices of REE in the international market, Lynas is experiencing losses through every kg of REE they processed. They had to resort to stockpiling the REE they produced in order not to further depress the REE prices thus lessening their losses. The restructuring of loans will determine if it will last another quarter!!
7. The people of Kuantan, Balok and the communities living nearby are gravely concerned with the data collected by the regulating authorities showing a slow and steady increase of background radiation since Lynas started its operations. This is consistent with findings by Professor Yoshihiko Wada, PhD from Doshisha University, Kyoto.
8. The fact that Lynas is imminently facing the possibility of a foreclosure brings into focus on the disposal of the wastes! AELB should seriously consider these facts before they decide to renew Lynas’ TOL. I
In order to convey these messages to the authorities concerned, SMSL is organizing a rally for the people of Kuantan and greater Kuantan at the MPK Padang 1 on the 17th August (Sunday). We are also sending a delegation comprising of local residents to hand in memorandums to the AELB and Lynas Monitoring Committee on the 14th August. We welcome all residents of Kuantan and greater Kuantan to participate in the rally as well as the trip to hand in the Memos.
For further information, please contact SMSL’s hotline 012 982 3302.