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

“The Mara Council is currently in the process of reviewing Mara Corporation and its subsidiaries’ future direction,” it said.

“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.”

The MoU, signed between Mara Corporation chairman Akhramsyah Muammar Ubaidah Sanusi 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.

Under the agreement, the residue will be turned into soil conditioner certified by the Standards and Industrial Research Institute of Malaysia and made available to farmers.

Akramsyah said Lynas presented Malaysia with an opportunity to develop the downstream industry as it was the only rare earths refiner outside China.

“We have allowed a strategic industry to go to waste, we have lost a decade of opportunity,” he said, adding that the downstream industries had not been developed despite Lynas’ presence in the country for the past 12 years.