Lynas had appointed a local contractor, Gading Senggara Sdn Bhd, to manage the project for a total of US$98 million (RM400 million), Reuters news agency reported.

The Lynas rare-earths processing plant in Gebeng, Kuantan, believed to be the world’s largest outside China, has been at the centre of environmental protests in Malaysia.

Last August, the federal government renewed the plant’s operating licence for six months on condition that it established a permanent facility to store its low-level radioactive waste. The company was also asked to make plans for a cracking and leaching facility overseas within four years.

Lynas said last week it was on track to get its processing licence renewal in March, Reuters reported.

However, a group of local residents have filed a suit against the government’s decision to renew the licence and the High Court is to hear the merits of the challenge on March 25.

High Court judge Nordin Hassan fixed the date last week after the court had granted permission to Kuantan residents Ismail Abu Bakar, Tan Bun Teet and G Ponusamy to challenge the government’s decision. Tan is chairman of non-governmental organisation Save Malaysia, Stop Lynas!