PERIKATAN Nasional (PN) condemns government’s move to halt Lynas operation saying it sends contradictory messages for renewable energy (RE) and rare earth technology development in Malaysia.

Machang MP Wan Ahmad Fayhsal Wan Ahmad Kamal said the decision will stop foreign companies from Japan and the US from considering investing in Malaysia for rare earth as their relationship with China sours.

“If we cannot continue the Lynas-friendly policy, not only will we not be able to develop the expertise of the rare earth processing sector but also the new RE that the economy minister wants to fight for.

“We cannot have a very contradicting (contradictory) policy,” he told a press conference at Parliament today.

Wan Ahmad Fayhsal added that Lynas is globally recognised as the world’s second-largest producer of separated rare earth materials, with a proven track record.

“Lynas holds a unique position as the only significant producer of the scale of separated rare earths outside of China, so why should we let this opportunity slip away?” he asked the government.

His comment comes after the Minister of Science, Technology and Innovation Chang Lih Kang said in Parliament in the morning that the government had decided to extend the rare earth company’s activity in Gebeng until the end of December 2023 after taking into consideration the global supply chain conditions for rare earth.

He, however, added that all information on the company’s appeal to the ministry to drop four licence conditions set by the Atomic Energy Licencing Board (AELB) was enshrined by confidentiality under Atomic Energy Licensing Act 1984.

“Hence the matter cannot be disclosed,” he said during the Oral Question and Answer Time in the Dewan Rakyat on Wednesday (June 7).

Chang was responding to a question by Khoo Poay Tiong (PH-Kota Melaka) on the basis of the appeal by Lynas in relation to the terms of its operations licence and the ministry’s stance on the matter.

“We gave them (Lynas) a six-month extension because we were informed that the cracking and leaching (C&L) facility in Australia cannot be completed by July. Noting that we cannot let the global supply chain be disrupted, we gave them an extension of six months,”

“The decision is final and cannot be changed,” he said — TMR