Lynas denies NY Times report on design flaws

Australian giant mining company Lynas Corporation denied altogether a report by the New York Times that its rare earth plant in Gebeng is facing construction and design flaws.

“There is no truth at all in the report,” said Lynas executive chairperson Nicholas Curtis during a press conference in Kuala Lumpur today.

“We do not understand fully the source and the material in the article.

“We can confirm that there are no engineering issue which we believe would be unsafe,” he said.

Curtis reiterated that the safety of the local community and its employees is the highest priority in constructing and operating the plant.

“We would in no way compromise the engineering standard. All contracting parties agree with us there are no significant material issues that would enable us to not meet any standard.”

He added that there will be technical queries in any large-scale construction operation which the engineers need to debate, but all the engineers of its Lynas Advanced Material Plant (Lamp) are “completely comfortable” with the technical solution that have been put forward.

Lynas Corporation deputy chairperson Liam Forde and Lynas Malaysia general manager Mashal Ahmad were also present at the press conference.

The Lynas plant, which is scheduled to begin producing rare earths - a material indispensable in making many high-tech products - by the end of September, has ran into controversy with stringent opposition from Kuantan residents who feared radiation from the waste produced.

‘Largest of its kind’

The RM700 million facility - which will refine raw material from Mount Weld in Western Australia - is described as “the largest of its kind” and set to provide the first new source of supply of rare earths outside China.

Rare earths such as super-magnet dysprosium and red-glowing europium are vital components in hard-drives and computer and mobile telephone screens, while the metals are also pivotal in making laser missile systems, wind turbines and solar panels.

The project has however drawn criticism from environmental groups, which were “appalled” the government had approved it after a similar plant in Bukit Merah, Perak was forced to shut down in 1992.

In the bid to overcome growing opposition, the government has set up an independent panel appointed by International Atomic Energy Agency (IAEA) to conduct a review on the radiation safety at the proposed plant.

The 10-member IAEA team submitted its findings to the Malaysian government today after spending a week early this month holding public consultation sessions and visiting the plant site in Gebeng, about 50km from Kuantan.

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