Lynas on a PR blitz to win support

By RAHIMI YUNUS / Graphic By TMR

Lynas Corp Ltd has upped the defence of its controversial rare earths processing plant in Pahang, taking full-page “open letter” advertisements in the mainstream media as the Australian-listed firm tries to win public support.

The company has been embarking on an aggressive public-relation (PR) blitz in recent weeks, especially after the setting up of an executive committee to review the project.

The committee is headed by Deputy Minister in the Prime Minister’s Department Fuziah Salleh, a strong critic of the plant since it was approved 10 years ago.

Lynas has indirectly raised concerns over the impartiality of the committee, including the statements made related to the project.

Reuters reported that the government-mooted review panel will focus on the processing plant’s radioactive waste emissions.

Fuziah in a statement said “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”.

The three-month review will also look at safety, health, social and environmental impacts of the plant, she said, according to Reuters.

Lynas CEO and MD Amanda Lacaze said the company’s main concern is the fairness of the evaluation to be conducted by the panel.

“Any policy and application of regulation should be scientifically-based, objective and just. We are just looking in an Australian vernacular for a fair go,” Lacaze said at a press conference in Kuala Lumpur yesterday.

She also read the open letter, which was addressed to the Malaysian government and the people.

Worries have heightened that the government may pull the shutter on the six-year-old plant. Lynas was given a manufacturing licence to produce “rare earth oxides and carbonates” at Gebeng Industrial Estate, Kuantan, in January 2008.

The approval was subject to a number of conditions, in particular, the need to comply with the safety provisions.

Lacaze said the company is prepared for any eventuality, including moving its operations to outside Malaysia.

“Anything can be done (transport to other locations). It is always the case of efforts, time and money,” Lacaze said.

She also added that Lynas has not received any notification from the committee on the scope of the review and terms of reference.

Lacaze also acknowledged that policy and regulations might change, but she hopes the company will be given enough time to adapt and adjust accordingly.

A check by The Malaysian Reserve showed that the Australian-listed firm already lost about A$900 million (RM2.68 billion) in market capitalisation after its share price plummeted from a 52-week high of A$2.96, according to Bloomberg data. The counter closed at A$1.64 yesterday .

Lacaze said Lynas has built a lot of intellectual properties in its business and could reorganise its assets if required.

“Would Lynas be out of business? The answer is no,” she said. “We do have alternatives.”

However, she said the company prefers to stay and operate in the country.

She also defended the rare earths processing plant, claiming that Lynas had received an approval to run its business in Western Australia back then, but instead chose Malaysia due to the stable environment, market and talent access.

Lynas currently sources central lanthanide deposit ore at its Mount Weld Concentration Plant in Western Australia and send the rare earth concentrate for processing at the Gebeng plant.

Rare earths, considered a rare mineral, are mined from the earth’s crust and used to produce components in the automotive, electronics, oil and gas, and renewable energy industries.

Lynas is the only producer of rare earth products outside China, with an annual production of more than 20,000 tonnes.

Critics over the Gebeng plant hover around the radiation risk and its impact on locals.

Lynas’ Malaysian operating licence must be re-applied according to a certain interval. Its next renewal is September next year.

Yesterday’s media briefing also saw Lacaze bringing close to 10 local executives who work at the Gebeng plant. Lynas Malaysia employs 650 workers with 97% of them are locals.