Lynas is Fighting Back

Lynas Corporation of Australia is stepping up its campaign countering the negativity and political theatre surrounding the safety of its rare earth refinery plant, a dispute that has dragged on for months.

Not only did Lynas open the doors to its plant in Kuantan to the media, with its directors willingly answering any questions, it also initiated defamation proceedings against web portal Free Malaysia Today and protest group ‘Save Malaysia, Stop Lynas’ for defamation.

“Lynas has and will engage legal representation to take action against people who publish defamatory statements and misinformation about Lynas or its operations,” the firm said in a statement, adding that it is concerned that these “defamatory statements will instil misplaced fear and anxiety in the general public about our safe operation.”

Well, the company certainly has a point. After spending RM 2.5 billion developing the plant in good faith and despite a green light by the United Nation’s International Atomic Energy Agency, it has yet to receive its temporary operating licence (TOL) by the Atomic Energy Licensing Board.

A legal challenge by Kuantan residents (since dismissed) and an inquiry by a Parliamentary Special Committee (PSC), which will only visit the Lynas site May 10th and conclude its findings June 19th, have delayed proceedings, very much to the irritation of Lynas.

The company is clearly poised to sway public opinion in its favour, providing journalists with a rare glimpse inside the plant and detailed answers to more than 20 allegations relating to safety at the plant and the radiation expected.

The managing director of Lynas Malaysia, Mashal Ahmad stressed the exhaustive testing that had been carried out to insure the plant’s safety standards and confirmed that an air monitoring system had been installed, which would be available for viewing online or at local police stations. “We have nothing to hide,” he said.

He also pointed out that Lynas’s radiological emissions would be miniscule, in fact, ten times less than watching TV on an old cathode-ray tube set for four hours.

Lynas’ frustration is understandable. The delay of the TOL has “very serious consequences financially and to our customer relations,” according to Mashal, who added that the firm’s rare earth products had already been sold out for the next decade.

The demand for rare earth is enormous, with the minerals being used in devices such as mobile phones, flat screen televisions, electric cars, even smart bombs.

China has a 95 per cent global monopoly and the participation of Malaysia in this industry would help to break China’s stranglehold on the market.

But the protests and subsequent delay over possible health and environmental risks – despite a lack of evidence – have not only hurt Lynas (which said it could lose orders worth RM 80 billion) but also Malaysia’s pro-business credentials.

Electronics production is the biggest industry in Penang, which is home to Dell, Intel, AMD, Motorola, Hitachi, Osram, Bosch and Seagate. Everyone of these companies relies on rare earth metals.

We can thank the Opposition for this dent to our business-friendly reputation, as it promoted protests rather than engage in constructive dialogue or fact-finding missions.

Penang Chief Minister Lim Guang Eng refused a personal invitation by Lynas Executive Chairman Nicholas Curtis, who offered to explain any concerns. He also rejected to participate in the PSC inquiry, calling it a “sham.”

PAS even went a step further, gagging its own nuclear scientist, who, in the end, defied party orders and stepped forward to confirm that the Lynas plant was very much safe.

No wonder Curtis complained that there was a “concerted political campaign” taking place in Malaysia based on misinformation and sabotaging the science-based process.

The Prime Minister Datuk Seri Najib Razak, meanwhile, has repeatedly stressed that he would never compromise on the issue of safety for the people or the environment. But, reasonable statesman that he is, Najib has also pointed out that no one has yet come up with scientific proof, which suggests that the plant does pose a health risk or would damage the environment.

“There is a tendency to use this issue for political objectives,” he said. “What started as a pure environmental issue, has become a political issue and this is unfortunate.”

He hit the nail on the head, with the Opposition sadly flouting any scientific evidence on the Lynas plant, deliberately exacerbating the controversy through its populist grandstanding and posturing.

Its resistance, obstructionism and unwillingness to address any issue, from Lynas to the landmark reforms, in a constructive and reasonable manner has, in fact, become the trademark of an Opposition that is fast losing any credibility and standing it has left.