Lynas License to Operate Malaysian Plant Put on Hold… Again

For the nth time, Lynas Corp.'s plans to operate what could rival China's rare earths industry has been hindered as a Malaysian High Court on Wednesday failed to come up with a final decision on the Australian miner's controversial temporary operating license (TOL), effectively delaying again the miner's start of operations of its rare earths processing plant.

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Opponents to the controversial Lynas rare earths processing plant in Malaysia now clamored for the resignation of the four ministers who approved the awarding of the temporary operating license (TOL) to Australian miner Lynas Corp, after the latter denied the existence of a provision in its license which states that the plant's residue must be shipped out of Malaysia.

Reuters reported that Lynas' TOL has again been put on hold after the Malaysian High Court moved to Nov. 8 its decision whether to allow or not the Australian rare earths miner to proceed with the operation of its Lynas Advanced Materials Plant in Kuantan.

This is the second time the Malaysian High Court moved the hearings and its eventual decision on the TOL. It was first expected to release a decision on Oct. 4 but moved it to Wednesday, Oct. 10.

Expected to have started actual operations in September 2011, Lynas only got to actually receive in its hands the highly contested TOL in September this year.

Malaysian activists want the High Court to postpone the plant's operation until two judicial review cases questioning the government's decision to allow the plant to operate are heard.

The Malaysian government body that released the licence, the Atomic Energy Licensing Board, said Lynas had met all technical and regulatory requirements, thus the licence's release.

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Opponents to the controversial Lynas rare earths processing plant in Malaysia now clamored for the resignation of the four ministers who approved the awarding of the temporary operating license (TOL) to Australian miner Lynas Corp, after the latter denied the existence of a provision in its license which states that the plant's residue must be shipped out of Malaysia.