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Environmental activists have expressed concerns over Malaysia’s recent decision to grant Lynas Rare Earths an extension until March 2026 to continue its operations. They are demanding increased transparency regarding the Australian miner’s plans to extract a radioactive element from its growing waste.
The Malaysian government’s announcement on Tuesday permitted Lynas to import and process rare earths at its refinery in central Pahang state, overturning a previous directive to cease these activities by January 1. The reversal followed Lynas’ proposal for a method to extract thorium, a radioactive element, from raw materials and over a million tons of accumulated waste at its refinery.
Activist Wong Tack criticized the decision, insisting that the government should have compelled Lynas to prove the viability of its proposal by immediately addressing the thorium issue within its existing waste. He labeled it “extremely irresponsible” to extend Lynas’ license without first dealing with the existing waste problem.
Environmental group Friends of the Earth Malaysia expressed bewilderment at the government’s U-turn, highlighting that it was based solely on a preliminary laboratory study conducted by Lynas. The group called for the public release of the details of Lynas’ study. They recalled that previous attempts by Lynas to convert radioactive waste into agricultural fertilizer had been rejected by the government.
In a statement, the group asserted, “A reversal of the government decision based on this preliminary study does not sound convincing or assuring from a public health and environmental standpoint. The government’s profit from the rare earths industry should not come at the expense of people’s health and the environment.”
Science Minister Chang Lih Kang, who supported the extension, noted that officials had reviewed Lynas’ proposal and found it to be feasible, but he did not provide specifics. He mentioned that Lynas would need time to conduct a pilot study before commercializing thorium, which can be sold for use in nuclear plants abroad and other industries.
Lynas’ Malaysian refinery, operational since 2012, is its first facility outside China, producing minerals vital for high-tech manufacturing. The Malaysian government initially granted Lynas a 10-year tax exemption, but concerns about the radioactive waste stored at the facility have persisted. The waste has accumulated in a large open landfill, exposed to natural disasters such as floods. Although Lynas is constructing a permanent disposal facility for this waste, the timeline for its completion remains uncertain.
This week’s extension is one of several reprieves Lynas has secured. Initially, the government had mandated that Lynas relocate its leaching and cracking processes, which generate radioactive waste from Australian ore, out of the country by the end of the year. The company was also prohibited from importing raw materials containing radioactive elements.
Science Minister Chang views this decision as a win-win situation, as the successful removal of the radioactive element would address the issue of growing toxic waste.
Rare earths consist of 17 minerals used in the production of electric or hybrid vehicles, weapons, flat-screen TVs, mobile phones, mercury-vapor lights, and camera lenses. While China possesses approximately one-third of the world’s rare earth reserves and maintains a near monopoly on supplies, Lynas has claimed that its refinery could satisfy nearly one-third of the global demand for rare earths, excluding China.
