Although suffering heavy financial problems, Lynas Corp has applied for a Full Operating Stage Licence (FOSL) for its controversial rare earth plant at Gebeng Industrial Zone, Pahang.
 
The plant’s Temporary Operating Licence (TOL) will lapse on Sept 2.
 
According to its quarterly report for the period ending June 30 this year, the Australian company had submitted all the documents required for the application for a FOSL for the Lynas Advanced Materials Plant (Lamp) to the Atomic Energy Licencing Board (AELB).
 
It stated that Lynas had also made an e-application as well as submitted a letter of intent.
 
“Assessment for the FOSL includes the company’s history of compliance with the current TOL. Lynas has complied with all regulatory requirements and all conditions of the TOL since it was issued by the AELB in September 2012,” it stressed.
 
Malaysiakini had failed to obtain a response from AELB on this matter.
 
AELB had issued the two-year TOL to Lynas on Sept 3, 2012 with five conditions, including the disclosure of the Permanent Disposal Facility (PDF) of the radioactive waste.

The Science, Technology and Innovation Ministry later imposed two extra conditions over the licence, which required Lynas to come out an immobilisation method to immobilise the radioactive elements in its waste and an emergency response plan on dust control.
 
However, the company has suffered great financial problems which saw the prices of its shares slump drastically.

It has plans to sell A$40 million in shares as well as to delay the USD215 million outstanding debt repayment to Tokyo-based Sojitz Corp to June 2016.
 
As such, anti-Lynas pressure group ‘Save Malaysia Stop Lynas’ committee had urged AELB not to grant FOSL to Lynas.
 
Production and sales have increased
 
Nevertheless, the quarterly report states that Lynas had increased its rare earth oxide (REO) production and sales for a fourth successive quarter.
 
“Total tonnes produced for the quarter were 1,882 tonnes, on an REO equivalent basis, a 73 percent increase on the prior quarter. Total tonnes shipped were 1,630 tonnes, on an REO equivalent basis, up 117 percent on the prior quarter.
 
“Production for the 12 months to June 2014 was 3,965 tonnes, while shipments during the year totalled 3,008 tonnes. Production and sales have accelerated through four successive quarters.

“June quarter production represented 47.5 percent of FY2014 production, while June quarter shipment volume represented 54.2 percent of the full year total,” it said.
 
Lynas had previously replaced its former CEO Eric Noyrez (right) with former telecommunications executive Amanda Lacaze and had decided to move its headquarters from Australia to Malaysia.
 
The report says that with the co-location of the management personnel and resources with production and sales facilities in Australia and Malaysia, it is expected to reduce about 50 percent in corporate overhead costs.
 
“Other initiatives to reduce costs include reducing workforce numbers (mostly by reducing contractor positions), improving asset utilisation, renegotiating supplier contracts and seeking improvement in procurement practices,” it added.