The Australian rare earths producer, which has a processing plant in Gebeng, Pahang, is seeking a three-year renewal of its operating licence which expires in March.

“Lynas Rare Earths Ltd notes recent media speculation regarding the conditions applicable to Lynas Malaysia’s operating licence renewal.

“At this time, the company has not been notified of any decision by the Malaysian regulator in this matter,” it said in a statement today.

Several news reports have said that Lynas will be barred from producing radioactive waste.

Malaysiakini and Singapore’s The Straits Times have published reports quoting sources, stating that the mining company must relocate its cracking and leaching facility out of Malaysia before July, and only refine intermediate materials at its facility in Gebeng, if it hopes to renew its licence.

In May 2019, then prime minister Dr Mahathir Mohamad said Lynas would be allowed to continue operating its processing plant in Gebeng. He said the government would have to renew the company’s licence as it did not want to lose such a large investment.

The operating licence for Lynas’ processing plant was due for renewal in September that year, but was under threat following concerns over waste disposal.

Lynas had maintained then that it has always complied with the government’s storage regulations and that its residue storage facilities are operated in a proper manner.