Wednesday, 27 September 2017

A video by Friends of the Earth on Ban Cyanide and Stop Lynas's campaigns

“From September 21 - 25, 2014, Friends of the Earth International carried out a solidarity mission in the areas of Bukit Koman and Gebeng in the state of Pahang, Malaysia to investigate into the persecution of environmental advocates and defenders for their resistance against 2 mega projects."

Monday, 31 July 2017


JULY 30, 2017

Press Statement by Save Malaysia Stop Lynas on recycling of the so-called Lynas Advanced Materials Plant (LAMP) in Balok, Pahang waste residue into an industrial by-product being marketed as soil conditioner under the name “Condisoil”.

We note with interest all announcements by Lynas on their efforts to recycle LAMP residue into a commercial industrial byproduct called Condisoil.

Due to our proximity to the area and our constant research we believe this is an attempt by Lynas to avert their obligation from building a Permanent Disposal Facility (PDF) as recommended by the IAEA Committee in 2011.

This issue is highly technical and requires extensive research on our part and we implore our fellow malaysians and members of the media to take time, understand the technical details and warn the public of the health and environment hazards involved.

In short Lynas Malaysia is attempting to avoid/escape the construction of a PDF by marketing its waste products as soil conditioner and other industrial products by claiming the radiation output of its waste is “intrinsically low”.

They have grossly misinterpreted a report by the International Atomic Energy Agency (IAEA) report in their efforts to escape their obligation and below is a detailed explanation of our claims:
Here are the facts:

1. In 2014, when the TOL needed to be renewed, Lynas in its 4th Quarterly activities report submitted to ASX on 31 July 2014 under the heading ‘Synthetic Mineral Products Program’, ‘Road base material developed from WLP has been certified by the AELB as non-radioactive material and the Company is preparing to seek Malaysian DOE approval for construction of a demonstration and assessment road using this material.’

‘The Company ,it continued, has gained approval from a customer and is preparing to make the first commercial trial export of NUF. Negotiations are ongoing for further commercial shipments. Lynas has also finalized the specifications for three granulated products for use in broad-acre trials.’
Unknown to all, in April 2014 The Malaysian Journal of Analytical Sciences, has published a paper on an attempt by UKM to extract Thorium from WLP in a Digestion Study. The paper was published under the heading ‘ Digestion Study of Water leach Purification (WLP) residue for possibility of Thorium extraction.’ The success rate was merely 5%.

In the paper WLP was found to contain Thorium concentration of 1952.9 mg/kg Uranium 17.2 mg/kg. According to Lynas over 99% of thorium in the feed lanthanide concentrate is removed to WLP and through calcination at temperatures up to 600 degrees C. The Thorium concentration in WLP of 1952.9ppm has a radioactivity of 7.98 Bq/g which was higher than what Lynas officially declared of 6 1 Bq/g, therefore it needs to be considered for regulatory control as the radioactive residue.

In the face of this scientific report, it defies one’s imagination to believe what was ‘dished out’ above by Lynas on claims that AELB certified road base material developed from WLP is non-radioactive!

2. On Dec 18 2016, it was reported by the that the Vice president of Lynas Malaysia, Datuk Mashal Ahmad said that UPM and MARDI was running field tests on a soil conditioner that was derived from its WLP residue. Its CEO Ms Amanda Lacaze said LAMP produces 3 solid residues two (NUF & FGD) of which are non radioactive while WLP has ‘very low radioactivity.’

It is true that NUF and FGD residues have concentrations of U< 0.0062 Bq/g and Th < 0.002 Bq/g , falling below the threshold of 1 Bq/g thus are non radioactive. They were officially discharged from regulatory control by AELB on 17th Oct 2013 but are still controlled as ‘scheduled waste’ in terms of environmental regulation. Thus they fall under the purview of DOE.
In our interactions with officers from DOE we were made to understand that Condisoil was made from FGD and NUF and it does not contain WLP residue as it is still under regulatory control by AELB.

On 27 July 2017 Lynas released a statement on Condisoil and no details on its composition or formulations were provided except the frequencies these different samples were submitted to SIRIM.
This statement only appeared after the Minister of MOSTI remarked that he agreed with the MP of Kuantan that ‘Lynas has jumped the gun’ as Condisoil is still in the research process. Further in his reply he revealed that the composition of the Condisoil is made up of 1 part WLP; 2 parts NUF and 7 parts FGD in the ratio of 1:2:7! The results of the safety confirmation test will only be known at the end of August.

The question that ought to be pertinently asked is why all these differing contradictory statements from the parties involved? Any discerning individual will conclude that the real issue behind is the insoluble problem of finding a suitable site for PDF and have it constructed according to international practice.

There are many other examples on how Lynas tried to argue that the PDF is not necessary. As an example they ‘quoted ‘ from the IAEA review report that the radiation produced in LAMP is intrinsically low while the review report said the team found that radiation exposure to the ‘PUBLIC’ is intrinsically low.’

We have tried in many past occasions to initiate positive engagements with Lynas Malaysia to seek explanations on issues of grave concern to the residents of Kuantan but were met with outright haughty refusal , the latest being an attempt to provide them a platform to explain their plan to recycle the solid wastes.

The IAEA review report recommended that Lynas be encouraged to maintain an ongoing, proactive approach to relations with the fullest possible range of stakeholders, including active opponents of the plant, keeping a low threshold for engagement and ensuring maximum transparency to address continuing widespread misconceptions.’ They have obviously overlooked this.
In the absence of trust and respect for all the stakeholders in Kuantan, Lynas’ attempt to pull a wool over the residents’ eyes on the recycling narrative will one day destine to meet its karma.

Issued by
Save Malaysia Stop Lynas steering Committee
29th July 2017

Thursday, 27 July 2017

KUALA LUMPUR: Sirim is yet to give the green light for condisoil, a soil conditioner derived from residue produced by the the rare earth plant run by Lynas.

Science, Technology and Innovations Minister Datuk Seri Wilfred Madius Tangau said Sirim has not completed its test on the condisoil.

He said Lynas has jumped the gun in stating that Sirim has given safety confirmation for its condisoil.

"I agree that Lynas has jumped the gun as the test is still underway.

"It is better to leave it to Sirim to complete its work and let the Environment Department announce the results," Wilfred told Fuziah Salleh (PKR-Kuantan) in the Dewan Rakyat today during Question Time.

Fuziah said Lynas had in its email to the Save Malaysia; Stop Lynas chairman stated that "the condisoil is non-toxic, non-radioactive".

"I think this is jumping the gun as you said the test is still underway," she told Madius.

Wilfred said Lynas has appointed Sirim as the condisoil standard certification consultant.

"As of now the safety confirmation test is still being conducted by Sirim. The final report will be released by end of August," he said.

It was reported that Lynas said the Atomic Energy Licensing Board and Nuclear Malaysia has confirmed that the condisoil is non-radioactive and that Sirim has confirmed it to be non-carcinogenic and non-ecotoxic.

Rare earth mining company Lynas Corporation hopes to process residue from its production operations for commercial use next year.

In an interview last year, Lynas Malaysia Sdn Bhd vice-president Datuk Mashal Ahmad had said 211,454 metric tonnes of residue are being stored at its advanced material plant and it is collaborating with two institutions to turn the waste into material for use in agriculture.

He said Universiti Putra Malaysia (UPM) and the Malaysian Agricultural Research and Develop­ment Institute (Mardi) is running field tests on a soil conditioner that was derived from its water leach purification (WLP) residue.

"Researchers from both institutes have tested this conditioner, called "Condisoil", on various crops including corn, kenaf, paddy, coconut and cattle-grass.

"After two harvest seasons, the initial results are amazing, with the growth rate of the plants doubled using Condisoil," he said.

Tuesday, 25 July 2017

UPDATE: Lynas 'condisoil'

Jawapan Menteri jelas membuktikan bahawa CEO Lynas berbohong apabila beliau buat kenyataan bahawa 'condisoil' dari Lynas telah mendapat kelulusan SIRIM

Soalan saya untuk sesi MQT (Minister Question Time) pada hari ini 25/7/2017 adalah di rujuk.

Soalan saya berbunyi :

1) Puan Hajah Fuziah Salleh (Kuantan) Minta MENTERI Sains, Teknologi dan Innovasi (MOSTI) menjelaskan berkenaan kenyataan Lynas pada 19hb July 2017 bahawa mereka telah berjaya mencari kaedah untuk mencipta 'condisoil' daripada residue kilang Lynas yang telah mendapat pengesahan keselamatan dari SIRIM.

CEO Lynas, Amanda Lacaze telah membuat kenyataan bahawa 'condisoil' dari residue Lynas telah mendapat kelulusan SIRIM sewaktu majlis rumah terbuka Hari Raya anjuran Lynas dan kenyataan tersebut telah mendapat liputan media tempatan.

Akan tetapi jawapan Menteri MOSTI tadi menjelaskan bahawa kajian keselamatan oleh SIRIM masih dijalankan dan dijangka berakhir pada penghujung bulan Ogos.

Maka mana mungkin pihak SIRIM telah meluluskan 'condisoil' tersebut, sekiranya kajian keselamatan masih di jalankan. Malah Menteri juga bersetuju bahawa CEO Lynas telah 'jump the gun' dengan kenyataan tersebut.

Justeru itu saya ingin memberi amaran kepada Amanda Lacaze dan Lynas supaya jangan bermain dengan isu yang melibatkan keselamatan rakyat. Kami warga Kuantan bukan bodoh yang boleh dikelabui mata dan di mainkan sewenangnya oleh initiatif perhubungan awam pihak Lynas.

Ada banyak lagi yang Lynas patut buat dari segi keselamatan awam seperti mengenalpasti tapak PDF ( Permanent Disposal Facility) yang sehingga kini masih belum dikenalpasti, walaupun ianya wajib dikenalpasti dalam tempoh 10 bulan TOL (Temporary Operating License) keatas Lynas di keluarkan pada September 2012. Juga syarat yang di kenakan ialah Lynas wajib kenalpasti PDF walaupun ada pelan alternative untuk residue Lynas, seperti kitar semula dan sebagainya.

Jangan ingat apabila Lynas menanam pokok di Kuantan, ianya terus menjadikan Lynas satu industri hijau. Juga jangan ingat apabila Lynas beri sumbangan kepada orang miskin, itu terus menunjukkan Lynas mempunyai sifat bertanggungjawab. Warga Kuantan tidak sebodoh itu untuk terus dipermainkan

Berbohong didalam sidang media ialah satu jenayah Corporate kepada awam. Ianya menunjukkan bahawa syarikat tersebut tidak bertanggungjawab dan tidak boleh dipercayai. Syarikat tersebut ialah Lynas Corporation (M) Sdn Bhd.

Hajah Fuziah Salleh
Ahli Parlimen Kuantan
Parti Keadilan Rakyat
Pakatan Harapan

MQT- Minister Question Time

Sidang Dewan Rakyat 25 Julai 2017 (sesi pagi)

Soalan saya berbunyi

1) Puan Hajah Fuziah Salleh (Kuantan) Minta MENTERI Sains, Teknologi dan Innovasi (MOSTI) menjelaskan berkenaan kenyataan Lynas pada 19hb July 2017 bahawa mereka telah berjaya mencari kaedah untuk mencipta 'condisoil' daripada residue kilang Lynas yang telah mendapat pengesahan keselamatan dari SIRIM.

Jelas daripada jawapan Menteri bahawa CEO Lynas Amanda Lacaze telah berbohong didalam sidang medianya dimana beliau menbuat kenyataan bahawa 'condisoil' ataupun soil conditioner yang di buat dari sisa kilang Lynas telah mendapat kelulusan SIRIM

Jawapan Menteri menyatakan bahawa kajian keselamatan masih lagi dijalankan.
Mana mungkin dah dpt kelulusan SIRIM sekiranya masih buat kajian

Wednesday, 19 July 2017

Tuesday, 18 July 2017

Sin Chew Newspaper (19/07/2017)

In today's SinChew.

If you can read Chinese, then you will believe that they have successfully turned the radioactive waste WLP into the product called 'Condisoil'!

Is this a Nobel prize winning feat or a mere PR stance to fool the uninformed?

We will explain to you the details of Lynas' recycling of the 'wastes' produced at LAMP this coming Sunday at Pusat Komuniti DUN Semambu.

Make sure you attend so that you can hear both sides of the story and you will know if Lynas needs to build the PDF.

See you at 2 pm at the DUN Semambu Community Centre on 23rd July 2017( Sunday)

Thursday, 8 September 2016

Uranium discovered in water supply for Moonbi and Kootingal in northern NSW

Elevated levels of uranium have been discovered in groundwater supplies for two small towns in northern New South Wales.

The amount of uranium discovered in the water that goes to Moonbi and Kootingal, both located about 20 kilometres north-east of Tamworth, in July during routine bore water testing, were higher than those outlined in the Australian Drinking Water Guidelines.

The elevated levels were confirmed in August.

Now both towns are being supplied with water from Tamworth.

But independent water expert, Professor Peter Coombes from Swinburne University, has called for calm.

"From a health perspective, a one off, small exceedance of most elements is not a drinking water guideline exceedance, you need continuous exceedance of the guidelines for uranium or any other element," Professor Coombes said.

"We hear these alarming stories for alternative water sources every now and again, but we have to realise water contains a range of elements at quite low levels."

The tests found uranium levels of 0.032 milligrams.

Australian Drinking Water Guidelines list the safe level for human health at 0.017 milligrams, and the World Health Organisation lists the safe level at 0.03 milligrams.

Professor Coombes said there was no point "rushing to alarm until we are sure" and multiple tests were needed to gauge consistency of the levels.

"We've got a number of cases throughout Australia and internationally where the water companies have not told communities of [elevated contamination] levels for a long time," Professor Coombes said.

"Background levels of these elements are natural and are expected so there is no reason for alarm or concern because they are just normal."
Council working to determine impact

Tamworth Regional Council's director of water, Bruce Logan, said he did not know if there had been an impact on residents.

"We're speaking to the Department of Health to try to get their advice on what the implications for the levels have been," Mr Logan said.

"I don't want to speculate at this stage, we'll see what the Department of Health has to say and then we'll let the community know."

It is believed the uranium is from a naturally occurring source.

"Uranium occurs in geology and we understand what's happened is one of the supplies, water has infiltrated through some rocks that contain uranium and that's got into the ground water supply."

"It's not unusual, uranium is naturally occurring but the levels that we're seeing are elevated at the moment."

Mr Logan said under the guidelines testing for uranium was required every six months, and as far as he knew, that testing regime had been adhered to.

He has defended the amount of time it took the council to inform the community about the elevated uranium levels, saying that they wanted to wait until they had more information.

"We felt that trying to get some answers would be a better idea to what the community might ask, rather than going and telling them something and not having the answers to the questions that might ask," Mr Logan said.

"The Department of Health will tell us what they want.

"We've given them information, they may say: 'we need more information', that might include going back and testing some of the bores, the water that's in the bores now, I don't know what they will say.

"But essentially, because we're no longer supplying Moonbi [and] Kootingal there is no risk to anyone out there now."

Wednesday, 7 September 2016

In response to our press statement on the renewal of the Full Operating Stage Licence for another three years, Lynas now claims there is no need for a Permanent Disposal Facility ( PDF) in view of their field trials and the possibility of commercialisation of their ‘solid residues from Lamp’.

This is a gross misrepresentation of the facts though the term ‘solids from Lamp’ is technically correct.

1. The Lynas Advanced Materials Plant (Lamp) produces three kinds of solid ‘residues’ (Lynas preferred the term residues to that of wastes because they claim that these ‘residues’ can be recycled), the first of which is called FGD (Flue Gas Desulphurisation). This together with the NUF (Neutralization Underflow) ‘residues’ are not classified as scheduled wastes as they are not radioactively potent.

The third category of waste is called WLP (Water leached Purification) ‘residues’ which are radioactive as it has a radioactivity of 6.4 Bq/gm.

It is the last category of ‘residues’ that the IAEA recommended to have them stored in a Permanent Disposal Facility.

2. The broad statement that ‘field trials and commercialidation of their ‘solid residues from Lamp’ does not differentiate between the radioactive one from that of the non scheduled wastes. Even if the field trials and commercialization is viable for the radioactive WLP ‘residues’, the need for a PDF would still be required as the decommissioning of the plant will require it to be identified and built.

3. It is both technically and financially not viable to recycle the radioactive WLP ‘residues’ as has been pointed out by us in our memorandums to both the Atomic Energy Licensing Board (AELB) and the Lynas Operation Monitoring Committee (LOMC) prior to Lynas’ first Temporary Operating Licence (TOL) renewal in 2014.

The simple reason being to turn the WLP ‘residues’ into commercial byproducts with less than 1 Bq/gm (so as to be classified as ‘non radioactive’), the costs are too prohibitive. Many other industries had abandoned the idea of recycling their industrial wastes even though theirs are non-scheduled wastes.

4. Lynas is not in any financial position to start recycling any of their ‘solid residues’ now or in the near ‘future’ as can been seen from their yearly financial report. The FY 2016 report is currently overdue.

5. Lynas claimed that currently it has produced 93,300 tonnes of WLP ‘residues’ on dry weight basis. To use this quantity of WLP ‘residues’ before they can be ‘recycled’ into ‘non-radioactive products, it would require a six-fold volume of whatever substance that could be used to dilute it before they can become the feedstock for the industrial product.

‘Preliminary costs practically make recycling impossible’

6. The preliminary costs of drying the WLP pastes before dilution practically make the recycling impossible. All claims on the reuse and recycling of WLP ‘residues’ were put up merely for the sole purpose of acquiring renewals for their Temporary Operating Licence.

7. The need to identify and build a PDF is recommended by IAEA in their 2011 report. Even in their second report (2015) it did not rescind the call to dispense with the PDF. It merely expressed its opinion that the ‘radioactivity’ of the WLP residues was ‘intrinsically low’. (That was after it took them a full month’s delay to ‘describe’ the radioactivity of WLP as ‘intrinsically low’).

8. They have also disclosed that they have submitted a siting plan and an engineering plan for the PDF ‘in accordance to the regulatory requirements’.

This statement underscored the remark made by the former director-general of AELB in 2014 that Lynas had only submitted a ‘conceptual plan of the PDF’ and he further commented that it was not acceptable.

Saturday, 3 September 2016

Press statement by Save Malaysia Stop Lynas group on the renewal of LAMP’s FOSL(TOL) on the 2nd September 2016

We note with deep regret and disappointment on AELB’s decision to renew LAMP’s Full Operating Stage License for another 3 years despite our call to its Board to examine the non fulfilment of terms and written undertakings by Lynas with commitments to recycle the radioactive WLP waste into industrial by-products and ship them overseas.

In Lynas Corporation’s announcement made to Australian Stocks Exchange today , it claimed that LAMP’s operations for the past 4 years at Gebeng, Kuantan did not cause notable increases in the background radiation level within 1,5 ,10 and 20 km radius of the plant. It also said the real time readings on the radiation level in the surrounding areas were also made available to AELB and the public online.

This is regrettably assumed by the parties concerned that the communities here are merely concerned with the issue of radiation.
If AELB Board has agreed to renew LAMP’s operating license for another 3 years based on this point of submission, we wish to remind all members of the Board that all the commitments and written undertakings by Lynas in regards to the management of the radioactive WLP wastes and identifying a location for the Permanent Deposit Facility (PDF) have yet to be fulfilled!

Since the first issuance of the Temporary Operating license in 2012, AELB has never made any announcements nor responded to public requests on the data of wastes they promised to collect in order to check if these data tally with that submitted by Lynas in their TOL application documents. This is important because Lynas did not build any pilot plant prior to setting up LAMP and all data on wastes were based on hypothetical calculations.

Neither has the other regulating authority like DOE.

This is in stark contrast to their statement that the ‘renewal followed a rigorous review undertaken by the AELB and other independent regulatory bodies in Malaysia.’

We wish to state here that our regulatory bodies concerned have yet to state openly, publish or respond to public’s criticisms on the matters mentioned above. This demonstrated clearly that they have ‘hidden’ themselves behind the stone wall of silence and are not ready to make themselves accountable for decisions they had made!

In our Memo to the Board on the 25th August, we reminded all members of the AELB Board that should it accede to the agreement to renew LAMP’s FOSL (TOL), they should be mindful of the ‘legacy’ they will be remembered by by the future generations of Malaysians for allowing profits to take precedent over people’s well beings.

With the approval of the Board to renew LAMP’s FOSL till September 2019, it testified to the fact that the Board has scant regards for the toxic legacy that their decision will help leave behind for our future generations!

Dated 2nd September 2016

Sunday, 31 July 2016

Press statement by Save Malaysia Stop Lynas (SMSL) on the coming renewal of Temporary Operating License before 3rd September 2016 to Lynas Advanced Materials Plant(LAMP) at Gebeng, Pahang.

Lynas Advanced Materials Plant (LAMP) has been operating with a Temporary Operating License (TOL) since 3rd September 2012. The TOL was renewed under the name of Full Operating Stage License in September 2014. It is due for another round of renewal in September 2016.

We hereby strongly urge AELB and the Committee that sits and deliberates over LAMP’s application for renewal of TOL to consider the following reasons before deciding to grant them a renewal:

1. In 2012, before issuing Lynas the first TOL, the Director General of AELB, Dato Raja Abdul Aziz said they needed to let it run to collect the waste samples for analysis and compare with the data provided in their documents accompanying their application for TOL.

Till this date AELB has not declared or stated openly if the analysis done on samples of wastes collected tallied or complied with the projected figures as provided by Lynas.

2. Prior to issuing the TOL, Lynas had given a written undertaking to AELB and the Malaysian Government to dispose of the radioactive WLP wastes generated either by recycling it into industrial byproducts or ship them overseas. It is based on this undertaking that the TOL was granted and issued by AELB.

In the ensuing months and just prior to its first renewal (which they renamed the TOL as FOSL) they claimed to have carried out research and were ready to pave a road using this byproduct called road aggregates. Nothing further was heard about this soon after the TOL was renewed!

3. The panel of experts from IAEA has recommended a permanent disposal facility (PDF)be identified for the proper disposal of the WLP waste and the decommissioning before an operating license is issued. This was not adhered to both by Lynas and AELB.

Ironically, Lynas submitted a conceptual plan for the proposed PDF and based on that AELB issued the TOL!

This is a gross dereliction of duty by AELB as the regulating authorities!

4. Lynas is presently unlikely to fulfill any of the promises they had given or pledged because of its dire financial position. They would have defaulted on their debt repayment since last year if their creditors had not agreed to a restructuring of the repayments! They even requested for permission from their creditors to allow them to draw down on the interests paid to them to be used as operating capital as reported in their announcement to the ASX recently.

Given the critical financial position Lynas is in, we wish to know if the safe deposits due to AELB each year have been accordingly paid in full as stated in the schedule?

This is important as the safe deposit shall be used to manage the wastes left behind should Lynas cease operating due to whatever reasons.

5. From the data given by Lynas in its RWMP, for each Kilogram of REE refined from REO, there will be 13.365 kg of solid waste produced inclusive of 2.84 kg of radioactive WLP waste by LAMP.

Ending 30th June 2016, LAMP has produced a total of 28,270 tons of REE.

The total waste breakdown of each category of solid wastes is as below:

NUF : 223,395.82 tons

FGD : 74,029.70 tons

WLP : 80,412.44 tons

Solid waste in retention ponds: 1,256.44 tons.

The total solid waste produced to date adds up to a grand total of more than 379,094.40 tons!

LAMP is in full operation since the month of June this year. This means it is producing more and more solid wastes each day.

Lynas has in 2014, declared that it had found a way to recycle the WLP into road aggregates and was waiting to pave an experimental road for long term observation and monitoring. That was announced before it acquired its renewal of the TOL.

This time, through our esteemed MITI Minister’s mouth, we were told that Lynas has done research to turn WLP into soil enhancer and it is waiting to carry out the field tests sometime next year! Again this is announced prior to the renewal of TOL due this September!

Are these announcements coincidental or cleverly contrived to pressure AELB into granting them the TOL renewals?

Given the financial difficulties Lynas is now facing, it cannot possibly allocate any funds to structure a concrete plan to manage these solid wastes effectively especially the radioactive WLP wastes. Therefore countless future generations of Malaysians will be burdened with this toxic legacy should it cease operation!

Are the AELB Licensing Committee members ready to be remembered as the people solely responsible for this national calamity brought upon by a foreign corporation that used our environment as their toxic radioactive waste dumping ground while reaping profits from its processing operations?

We hereby call upon the Pengarah of AELB to withhold the renewal of its operating license.

Dated 31st July 2016.

Wednesday, 15 June 2016

24th May 2016 marked the end of our long legal tussle with Lynas. The Appeal Court in Putrajaya dismissed with costs Lynas' appeal on a point of law whether the High Court Registrar has the legal authority to determine the quantum of taxation.

The taxation issue arose out of the defamation suit being dropped by Lynas against SMSL, me and 4 others in 2013. Since then our legal counsels had been busy sorting out documents and items on which we can claim expenses in regards to the case.

Before this Lynas offered to compensate us with RM3,000.00 for all the troubles they caused in instituting the defamation suit!

Though we spent hundred of thousands in getting experts from both local and overseas institutions in preparation of our defence, the court ruled that not all were admissible. In the end we were awarded a total of RM 80,505.10 for all claims inclusive of preparation of legal documents.

There is a lesson to be learnt here: Corporations will resort to any means money can employ to harass any party that raised a legitimate protest against their clandestine activities that might have a serious negative impact on the environment.

As can be seen, an e-portal which was sued together with us had no financial means to defend itself had decided to comply with Lynas' demand for an open apology.

We stood firm and were ready to wade through the challenges to prove ourselves. This had the effect of rattling them in their consideration of the possible negative perception of their corporation image internationally ! Thus the defamation suit was dropped!

Sometimes one has to stand firm to allow truth to prevail and this is one incident where we did!

Quick Update On Lynas:

Lynas owes Jogmec/Soljitz US$205 million. They are referred to as the senior creditors and interest rate payable is 6.5% p.a

It technically also owes US$225 million as bonds held by Mt. Kellet with annual interest of 2.75%

On their last submission to ASX, Lynas informed their shareholders that:-

1. All interests due to the creditors from May to Sept 2016 are postponed to Dec 2016
2. The US$2 million payable on 30 June 2016 to Soljitz will be paid thru special redrawing rights agreed upon by both Lynas and their creditors from the restricted JARE account. (What it means is that the US$2 million will be taken from the pool of interests paid by Lynas to both the creditors.
3. The JARE restricted account has a balance of US$1.37 million. Lynas needs the sum and has acquired permission from the creditors to allow them to withdraw it completely. It shall be paid back by Lynas in Dec 2016.

There will be no penalty or interests charged for these arrangements. Therefore, please judge for yourself the chances of Lynas' continued survival in operating the RE business.

Save Malaysia! Stop Lynas!

Saturday, 21 November 2015

Press Statement by SMSL on 20th November 2015

On the 16th November 2015, The Star newspaper reported that Lynas Corp Ltd’s Chief Executive Officer (CEO)Amanda Lacaze said;

“It’s hard to run a scare campaign in the face of hard evidence, referring to protests against the plant’s location in Kuantan.”

The ‘hard evidence’ referred to was the claim that the data on “low background radiation and harmful emissions collected by third parties over the last four years…”

It is understandable why she made such a claim at this time of the year. The Annual General Meeting (AGM) of Lynas’ shareholders is to be held on the 23rd November 2015(Monday) in Sydney. We wonder why the regulating authorities, the AELB, had remained absolute silence over the matter and allow an interested party to make such a claim. Isn’t AELB the rightful authorities entrusted to adjudicate on the matter?

The paper further reported that “Lynas Corp’s radiological safety adviser Prof Dr. Ismail Bahari said the company had invested RM50millions into equipment to neutralize any acidity, metals or contaminants from its residue.’’

‘’He further added that another RM75millions was spent on a system to treat its gas emissions and scrub harmful sulfuric acid in the gas”

Should the Kuantan residents feel grateful for the ‘extra mile’ Lynas Malaysia has taken to ensure the emissions are controlled within the permissible limits? If the monies concerned had not been spent how would the stakeholders ever know if LAMP is operating with safe limits of all the harmful substances and gases it produced?

When LAMP was granted the TOL, the DG of AELB Datuk Raja Abdul Aziz Raja Adnan, in reply to questions, said that the TOL was issued with the aim of collecting various DATA to ascertain that LAMP’s gaseous and liquid emissions and solid wastes produced are in accordance to that advanced by Lynas in their documents submitted in support of the application for the operating license. And here we have instead the interested party making all the statements concerning the various data which fall under the duties and role of the regulating authorities to collect and verify.

We hereby urge the Atomic Energy Licensing Board to come forward to state and verify if Lynas Corp’s claims on emissions and wastes are authentically accurate.

Thursday, 9 July 2015

SMSL/PSHK Media Statement

8th July 2015

We finally received the report of the International Post-review Mission of International Atomic Energy Agency (IAEA) on 26 Jun 2015. It has been almost 8 months since the delegation visited Malaysia on 13-17 October 2014. Malaysian public deserves an explanation on why the report took such a long time to be published. The public should be made known of the executive summary of the report which would then reflect the transparency as well as public engagement by the government and Lynas

The report titled “The International Post-Review Mission on the Radiation Safety Aspects of the Operation of a Rare Earth Processing Facility and Assessment of the Implementation of the 2011 Mission Recommendations” mainly focused on the public and operational safety, radiation protection, safety assessment, waste management, decommissioning and environmental remediation.

It is disappointing that the imminent need for Permanent Disposal Facility (PDF) is still absent. To recap, finding a location for the PDF for the WLP waste and the decommissioning is one of the requirements for Temporarily Operating License (TOL) to be granted to Lynas. Instead of keeping true to their recommendations concerning this issue, the IAEA team suggested “A scenario in which the Residue Storage F 9as presently executed on-site) becomes the Permanent Disposal Facility for the WLP solids should be addressed by Lynas and included in an update to the Safety case and reflected in other supporting documents as appropriate”

Though submissions have been made by residents’ groups on this subject where Lynas has repeatedly claimed that they are currently doing research on the recycling of the WLP waste and the government of Malaysia has Issued statements to the effect that even if those experiments were to be successful, the industrial by-products from the recycling have to be shipped abroad!

The Review Mission team was fully aware of Lynas’ plan to use the RSF as PDF for WLP solids and yet chose to hide their support by mentioning that should Lynas elects to do so, all it has to fulfill is to “merely update their Safety Case report and in other supporting documents”! If it is not because of restriction on land use requirements by AELB, the proposal would have been treated as the acceptable solution to Lynas’ waste disposal of WLP solids.

IAEA report also pointed out the fee adequacy of USD50 million for covering the cost of the long term management of waste including decommissioning and remediation is undetermined by the report. The review team suggested the fund’s financial basis and adequacy be assessed again against an appropriate estimate of potential future liability. This is extremely urgent and important as Lynas is currently under financial distress, and the USD50 million deposits can only be paid in full over a period of 7 years instead of the original 5.

Besides the waste management activities in the Decommissioning Plan are only vaguely described, the aquatic pathway of the waste water discharge is not radiologically monitored and this must be viewed seriously. Immediate remedial actions must be taken accordingly.

In its follow-up suggestions the IAEA Post Review team requires Lynas to define clearly the quantification of the management options for the waste generated and the disposal routes for these wastes be more consistently defined.

This indicated that Lynas has yet to have a comprehensive and accepted way to manage the thousands of tons of wastes generated so far.

Both the Malaysian Government and Lynas have failed to comply with all the recommendations by IAEA in its first Review Mission! To conclude otherwise which the IAEA Post Review Mission team has done is tantamount to committing grave injustice to the people living within the 30 km radius of the rare earth plant!

IAEA Report:

Thursday, 29 January 2015

An interview with SMSL Chairperson, Mr. Tan Bun Teet with Mr. Fabian Biasio from Luzern on the issue of Lynas
Will Lynas survive its financial crisis?

Lynas’ financial status prior to 30th September 2014

In late September 2014, Lynas was due to repay Sojitz USD$35 millions. Besides that it has to set aside funds to cover the operating losses in the current quarter of no less than USD$ 10 millions. Given the cash in hand it has no way of meeting the obligations. The threat of a loan repayment default and a possible foreclosure loomed high in the horizon! Should their senior creditor Sojitz refuse to agree to a DEBT REPAYMENT RESTRUCTURING, they would have to consider stopping the operations in LAMP! Though Lynas had engaged the service of Nomura bank of Japan to negotiate with Sojitz, they failed to broker a deal with Sojitz. Sojitz later agreed to a new schedule of repayments at the last minute but extracted an additional 7% interest on the amounts payable.

Desperate moves to raise funds

Meanwhile Lynas commissioned Patterson Securities of Australia to underwrite the following new issues as a way out of their financial straits:

1. Underwrite 150 million new shares at AUD $ 0.080 to pay the USD$ 10 millions due to Sojitz.

2. Issue renounceable rights shares at the ratio of 15:4 to all existing shareholders at AUD$0.080 per share to raise another AUD$71 millions as operating expenses. This exercise is again underwritten by Patterson Securities. The total number of shares added came to 887,500,000 shares. Only a third of the total shares issued were taken up by the shareholders.

3. Lynas was keenly aware that it might not be able to borrow or raise funds through issuance of new shares in the coming months thus an underwriters’ rights option was included in the September 2014 offer at the ratio of 2:1 at AUD$0.090 per share exercisable before the 15th September 2015. This is expected to bring in another AUD $66 millions by adding another 740,226,191 shares to the total. The current total shares in trading stands at 3,370,955,034(3.3billion). Should the underwriters’ rights options be fully subscribed, it will eventually expand the total shares to 4,111,181,225! The practice of unrestricted issuance of shares to raise funds by corporate companies like Lynas has drastically diluted the worth of the current shareholders. It has also affected the interest and confidence of potential investors! This perhaps, helps to explain why the current share price of Lynas remained low. This week’s share price closed at 5.5 cents.

Current status at the end of 3rd quarter 2014

At the end of the 3rd quarter 2014, Lynas managed to raise AUD$83 millions to defray expenses on repayment of loan and maintain adequate funds for operating expenditures in subsequent quarters.

The 3rd quarter’s financial report by the management saw a reduction in operating losses narrowed down to AUD$ 10 millions compared to the preceding quarter of 30 millions. Whether the report was skewed in any way to paint a good picture for the company as well as shoring up shareholders’ confidence on the new CEO, the investment community will be the better judge of it and let’s wait for their 4th quarterly report before we make any further comments.

The crucial factor that will determine Lynas’ survival rests on the REO market price. Lynas has admitted that the current market price does not favour a full capacity production. Under the current market conditions, Lynas is only able to make a thin profit through sale of NdPr (Neodymium and Praseodymium) while sustaining losses in other types of RE they processed. Given an annual production of 22,500 tons, NdPr only account for a total of 2,800 tons. This works out to only 12.7% of the total volume of REO Lynas produced each year. The profits from the sale of this 12.7% will be used to subsidize the losses incurred through the sale of the other REOs.

What this means is the funds they have in hand will be depleted much more quickly following each month they are in operation. Their promise to supply an annual volume of 8,500 tonnes of REO to Sojitz seems plausible judging from the production volume of the September quarter. However this will also mean they would have to set aside a larger sum of funds to cover their enlarged losses. How much is this quantum is yet to be revealed. We will only be able to catch a glimpse of it when they publish their fourth quarterly report for 2014.

How long can the funds in hand last?

With the renewal of the 2-year TOL, Lynas has to pay AELB USD$ 7.79 millions. This is approximately equivalent to AUD$ 8 millions. This will reduce the total funds remaining to AUD$63 millions.

Lynas has hinted obliquely in their past reports to ASX and shareholders that they have to set aside funds to repair the cracking and leaching as well as the finishing areas of LAMP. The fact that they have to sell off 190 tonnes of semi-finished NdPr in Chloride form and suffered a revenue reduction of USD$2 millions to the total demonstrated the urgency to get the units up and running in the ensuing quarter. The December report will reveal how much has been spent to get the units up and running. The statement that they are able to produce their final products close to 99.9% of the specifications their client demanded is ambiguous. Even Molycorp has to send its products (the heavy REE) to China for final finishing!

The operating losses (if any) for the December quarter is still unknown. Only a close scrutiny of their report will reveal how the remaining funds in their hands will be used in the coming months, not forgetting that they have senior debt obligations to fulfill every three months starting March 2015. One conclusion seems to be obvious is that they expect the current funds will last till or before the underwriters’ rights option expires on 15th September 2015.

Circumstances under which LAMP will be forced to close

We have to be realisitic in our evaluation on the circumstances under which LAMP will probably stop its operations. Let us take a sober look at all the possible scenarios:

1. Lynas’ cash in hand runs out and they have no choice but to default on their loan repayments to Sojitz.

Sojitz took out a court order to liquidate Lynas’ current assets. LAMP will be included in the list and it has to stop operating while waiting for the court to appoint a liquidator.

2. Lynas is ordered by the Malaysian Government to fulfill the condition of locating a PDF.

Lynas would then have to allocate a certain sum to locate a suitable PDF and no one can be sure how much this will be. It will eat into the cash reserves they have in hand. Plus the interests on both their loans ,whatever is left may not see them last till end of June 2015 perhaps.

(This is not likely to happen for Lynas has proposed to recycle the WLP into road base aggregates (RB4) and the proposal was accepted by AELB in mid June last year. ( This can be found in their June 2014 quarterly report) Currently it has received proposals from third parties to recycle the other two streams of solid wastes. By agreeing to Lynas’ proposal for the WLP usage, it will exempt Lynas from finding a PDF.

Should our Government close both eyes to the timeline when it will be put into practice, Lynas will not need to spend any money on dealing with its WLP wastes. All its remaining cash can then be used fully to keep the loss making operations running.)

3. Our Judicial Review's (JR’s) prayers were answered.

This will mean the TOL will be revoked and LAMP has to stop operating. However Lynas will appeal and before the case is heard in appellate court it can continue its operations.

4. Should Lynas be forced to stop operating due to cash shortage, some lender(s) of last resort may lend them the money to carry on while hoping that the REE market will turn round.

This is a highly risky adventure for any private financial organization. Only a foreign government like Japan might be interested in injecting the necessary funds into Lynas to keep it running just to break China’s stranglehold on the RE market.

Confronting the reality we have a serious problem of how to get Lynas and our government to act on the safe disposal of the radioactive waste.

This is something all have to think about. By waiting for the market to ‘kill’ Lynas, we still have to come up with a proposal that will ensure the waste left behind will not pollute our environment permanently.

Friday, 15 August 2014

Press statement by SMSL/PSHK on 15th August 2014

PSHK/SMSL is organizing a public rally to present memorandum to all the Pahang State Assemblymen on the 17th August at the MPK Padang 1 starting 8.00 am. This is to provide the people a chance to participate in a gathering where they can get to know the people whom we elect to safeguard our well beings.

It is also an opportunity for people to voice out their concerns about the operation of Lynas Advanced Materials Plant (LAMP) which has evidently been causing anxieties among the residents. The people are concerned that the issue has been so politicized that it could never again be rationally discussed in the State Assembly. It has practically strained the bond between the people and the government! This is something that will not bode well for the good of the state!

Lynas brought in more than RM2 billion to invest in Malaysia. While its economic contribution to our economy is still debatable, the fact that it has been in operation without the social contract for almost 2 years and had generated a lot of solid wastes including that of radioactive WLP waste is undeniable. Despite the fact the Government has granted it a 2 year Temporary License, people’s immediate concern is whether this plant’s operations had been monitored adequately and the radioactive wastes generated managed safely.

In its latest quarterly report Lynas has proposed to the Department of Environment to allow them to build a road in Malaysia using the recycled radioactive WLP waste. It did not declare where it will build it. We hold the view that Lynas should have built the pilot plant which it didn’t and carried out all tests and assessments regarding the recycling of its wastes before it set up LAMP here!

CERRIE (Committee Examining Radiation Risks of Internal Emitters) Report came to the conclusion that there is no safe level of radiation while the OEKO Report stated that the practice and recycling of radioactive wastes by dilution is not practised anywhere internationally and even if it is diluted to below 1 BQ/gm, it will still be way above the BRC (Beyond Radiological Concern) level!

Should this be allowed it will turn our beloved country into Lynas’ experimentation station for recycled radioactive wastes! So is the proposal to recycle the NUF wastes into another synthetic product!

We would like to urge all our state assemblymen to take note of this matter and debate with sense and sensibility in the Dewan to ensure that all the Pahang State residents are fully protected. We are not advocating NIMB (Not In My Backyard) policy but to remind the elected people’s representative that they have a sworn duty to protect the State and the people living in Pahang.

We hereby urge all Kuantan, Balok and all residents living nearby to come out to attend the rally and serve as witnesses to an event that will refocus on treating issues that affect people’s lives as matters that deserved to be discussed rationally and resolved in the State Assembly in the best interests and benefits of the citizens!

We welcome all residents irrespective of political affiliations or inclinations to attend this rally. Your active participation is to safeguard the long term interest of our future generations.

We look forward to your presence on the 17th August 2014 at the MPK Padang 1 starting 8 am.

 For further details, kindly please contact SMSL hotline 012 982 3302

Wednesday, 13 August 2014



AtomicLevel 20 -West Wing, Menara MATRADE, Jalan Khidmat Usaha off Jalan Duta, 50480 Kuala Lumpur.
Time: 9.30am


Kementerian Sains, Teknologi dan Inovasi,
Batu 24, Jalan Dengkil, 43800 Dengkil, Selangor.
Time: 11am

3) Department of Environment (DOE)

Jabatan Alam Sekitar, Kementerian Sumber Asli dan Alam Sekitar
Aras 1 - 4, Podium 2 & 3, Wisma Sumber Asli No.25, Persiaran Perdana, Presint 4,Pusat Pentadbiran Kerajaan Persekutuan
62574 Putrajaya.
Time: 12noon


Lynas perlu membaharui lesen sementaranya sebelum 2hb Sept 2014. Semua penduduk di sekitar Kuantan harus mengutarakan kebimbangannya terhadap ketiadaan lokasi PDF dan pengurusan sisa yang selamat.

Kami akan menghantar memorandum kepada LMC, AELB & DOE pada 14hb Ogos mengenai perkara ini. Kami menyeru semua turut serta & hubungi talian kami 012 9823302(SMSL) utk pendaftaran pengangkutan percuma dari Ktn ke KL. Sebarkan!

关丹县乡亲父老:莱纳斯稀土厂的临时营运执照将于今年9月2日届满。由国会遴选委员会建议下成立的 LMC (莱纳斯运作监督委员会)将在8月14日举行最后一次会议,并将做出一份报告交给MOSTI部长,让他决定是否应更新莱纳斯的临运执照。而原能局 (AELB)也将在接获该份报告后进行讨论并建议部长是否应更新该执照。

8月14日早上,我们将前往吉隆玻3个地点提呈备忘录:1)LMC 2)AELB 3) DOE。呼吁所有关心此课题的关丹居民一同参与。我们将为您提供免费来往交通工具,让您一齐出席提出关丹居民的诉求,让政府看到我们并没有放弃反莱纳斯。 坐位有限,欲参与者请尽早报名> 联络热线 012 982 3302 (SMSL)。传!

〜STOP LYNAS 〜 Lynas' TOL is due for renewal on 2rd Sept 2014. The LMC (Lynas' operations Monitoring Committee) set up under PSC will be holding its last meeting on 14th Aug. to prepare a report for the Mosti Minister. AELB will then hold a meeting to decide on d renewal.

We are going to KL- LMC, AELB & DOE to hand in our memos on the 14 Aug Morning, to remind them NOT TO RENEW Lynas' TOL ! All Kuantan residents are welcome to participate in this expedition. Free transport will be provided. For further details pls contact our hotline : 012 982 3302(SMSL). Thank you.

Monday, 4 August 2014

SMSL/PSHK Press statement on the 2nd August 2014

Lynas Corporation has just released its quarterly reports ending 30th June 2014.

Based on the reports ending 30th June 2014, Lynas is financially in a critical state. SMSL hereby urge the government and the regulatory authority AELB NOT to extend or renew its TOL!

In its Cash Flow report, the quarter ended with a deficit of $A 23.775 millions while its previous quarter has a cash reserve of $A 23.359 millions! It raised $A 39.971 millions from a rights issue exercise and institutional placement of shares last May. It now has a cash balance of $A 38.144 millions, while the next quarter has a forecast outflow of $A 58.172 millions! This does not include the next principal repayment due under the Sojitz Facility of US$ 35.0 millions on 30th September 2014!

Though the quarter saw a production of 1,882 tonnes of REO, Lynas only sold 1,630 tonnes and grossed in A$26.495 millions which is equivalent to a basket price of A$16.254/kg. It is much lower than basket price of US$20.35/kg during the quarter on a China domestic basis. What this means is LAMP is operating on a loss accumulating basis. The market price for REO is continuing to experience the down trend and this will further exacerbate Lynas’ losses through a full operation ramp up as announced !

It is now clear that Lynas’ financial health is in ‘ICU’! Should it failed to get their creditor Sojitz/LOGMAC to agree to defer their repayments of A$ 215 millions in 6 monthly intervals till 31 March 2016, it will begin to default on their repayments starting September 30th this year and this could lead to dire and serious implications for the community here ! With the meagre sum of US$13.05 millions received as security deposits, would it be sufficient to dispose off thousands of tonnes of solid radioactive wastes left behind by LAMP safely?

The Government of Malaysia and the regulating authority AELB should exercise the Principle of Caution and reject Lynas’ application for the Full Operating Stage License (renewal of TOL)!

In its activities report ending 30th June 2014, Lynas revealed that it has submitted all documents required for the application for a Full Operating Stage License (FOSL) for LAMP to the AELB. It has also made an e-application as well and submitted a letter of intent to that effect. Lynas claimed that it has complied with all regulatory requirements and ALL conditions of the TOL since it was issued by the AELB in September 2012. (Source: Quarterly report ending 30th June 2014)

The residents of Kuantan and Balok hereby request AELB to confirm

1. that Lynas has identified a location for its PDF as required under the terms of the TOL.

2. that Lynas has successfully conducted tests on the recycling of solid wastes into Synthetic Mineral Products as claimed in their report and they are prepared to fulfill their undertaking of shipping them abroad to their potential buyers;

3. that AELB has certified the ROAD BASE material developed from water leach purification (WLP) as a Non –radioactive material and Lynas is seeking DOE’s approval for construction of a demonstration and assessment road using this material;

4. that the company has gained approval from a CUSTOMER (Is AELB aware of this?) and is preparing to make the first commercial trial export of neutralization underflow product (NUF).

5. that AELB has checked , agreed and approved all these alternatives to finding a PDF.

6. that the written undertaking by Lynas to ship all recycled products overseas will be adhered to as directed by the Malaysia Cabinet.

The residents are gravely concerned that both Lynas and the regulatory authority have not been fulfilling their pledge to inform and engage the local residents and communities on these matters. It is part of the IAEA recommendations that both Lynas and AELB should adhere to as a precondition to the issuance of TOL.

Lynas claimed that WLP wastes will be recycled as ROAD BASE material and the AELB has certified it as non-radioactive, we would like both Lynas and AELB to provide us with a sample so that independent experts can have a say over this. Meanwhile we urge the DOE NOT to approve the proposal from Lynas for the construction of a demonstration and assessment road using this material! Lynas should have done this before it built its plant here. Why should our land and environment be the experimental laboratory for Lynas’ radioactive wastes?

So is the claim by Lynas on the commercialization of NUF wastes. We demand that all information regarding the CUSTOMER and the trials that had been carried out be made available to the public so that a fair and independent opinion can be sought from the experts to appease the fears and concern of the people!

Contrary to what Lynas has claimed in their report regarding the fulfillment of ALL conditions under the TOL, it has failed to carry out what it promised in its written undertaking. AELB should under no reasonable circumstances allow the application for the Full Operating Stage License (FOSL) to be approved!

We as stakeholders have been bypassed and ignored when LAMP was built. We promise that we will not let this matter rest if proper observation of rules and regulations both by Lynas and the regulating authorities are not adhered to. We shall pursue through whatever means necessary to ensure that our environment is not sacrificed on the altar of foreign profits and the incompetence of our government officials!

For further information, please contact our Hotline 012 982 3302