Shares of Australian miner Lynas have been hit since reports emerged that Fuziah, an ardent critic of Lynas, had been picked to probe the plant, which has long been opposed by green groups over concerns that it produces dangerous radioactive waste.
The factory began processing rare earths sent from Australia in 2012. The miner hopes the US$720 million plant can reduce Chinese dominance in the market for rare earths, which are used in everything from missiles to mobile phones.
Malaysia’s political opposition had long been against the plant, and the review comes after it unexpectedly ousted the coalition of Najib Razak at the polls in May.
Fuziah confirmed that she would chair a 10-member committee to examine operations at the site in Kuantan, Pahang, and whether it had met regulatory requirements when it was set up.
“We are worried about the plant’s radioactive waste management,” she told AFP.
“We want to open all the files and see if all the conditions for setting up the plant, issuance of the temporary operating licence and the permanent operating licence, have been complied with,” she added.
The politician has long campaigned against the plant, which is in her constituency.
The committee, including lawyers, environmentalists and chemical engineers, will hold its first meeting on Thursday and the review will last three months, she said.
Recommendations will then be submitted to the government.
Lynas said in a statement on Monday that it would cooperate with any review but added that reports that the committee chair may be a long-time anti-Lynas campaigner “will raise concerns”.
Widespread opposition to the plant led to the start of its operations being delayed by a year.
The Australian miner insists the plant is safe and that any radioactive waste will be low-level and safely disposed of.