Mara Corporation chairman Akhramsyah Muammar Ubaidah Sanusi said in a statement the signing of the MoU yesterday was done “in compliance with all requirements of good governance”.

The MoU, signed by Akhramsyah and Lynas vice-president and managing director Mashal Ahmad, included collaboration on the commercialisation of non-radioactive residue from the Lynas Malaysia plant at Gebeng, Kuantan

Akhramsyah said: “The MoU was brought to the board of Mara Corporation on Sept 23, 2019 and approved with the board representative from the Mara Council in attendance.

“The approval was not conditional other than it being agreed that it be kept confidential and be expedited, understanding the sensitivity of such an MoU as the parent company of Lynas Malaysia is listed on the Australian Stock Exchange (ASX).”

Akhramsyah said he wanted to set the record straight following a statement by the Mara Council that the MoU on developing the downstream rare earths industry in Malaysia was inked without its approval.

In a statement, the council had said the action of the Mara Corporation chairman was not in line with the council’s directive in which all new initiatives required its consideration and approval beforehand.

“The Mara Council is currently in the process of reviewing Mara Corporation and its subsidiaries’ future direction. Pending the finalisation of this review, Mara Council has directed any initiatives by Mara Corporation with any parties to get approval from the Mara Council and the rural development ministry,” it said.

Akhramsyah said in his statement that Mara chairman Hasnita Hashim was also later briefed on the matter “in a private discussion” on Oct 2.

Also, he said, the office of the rural development minister had been kept abreast of developments up to the signing of the MoU.

“It is my opinion that there is a pressing need for an entity such as Mara Corp to catalyse Malaysia’s downstream rare earths industrial, research and technological capabilities leveraging from Lynas Malaysia’s presence.

“We are determined to pursue this opportunity for the nation, beginning with this MoU and our participation in the 16th International Rare Earths Conference commencing later this week in Kuala Lumpur,” he said.

He said Mara Corporation considered the MoU as valid and would “proceed to honour it as we see it as strategic to the economic development of Malaysia”.

He added that it also fulfilled Mara’s mandate in focusing on potential growth areas for Malays and Bumiputeras.