He said the extension was granted under strict conditions that must be strictly observed.

He said a detailed explanation would be given tomorrow by the minister for science, technology and innovation, Chang Lih Kang.

Chang had told FMT earlier today that Lynas had been granted an extension of “a few months” following an appeal by the company against four conditions imposed by the Atomic Energy Licensing Board.

The minister did not elaborate when asked about the extension, saying only: “Please wait for tomorrow’s statement for more details.”
The ministry had convened a closed-door tribunal on April 28 to discuss the Lynas appeal to remove the four conditions introduced in March 2020 which had prohibited the import and processing of rare earth elements.

The primary condition is that Lynas must relocate the “cracking and leaching” of lanthanide concentrate to a site outside Malaysia and only refine intermediate materials at its facility in Gebeng by July 1.

An application to remove the four conditions was turned down by the licensing board, resulting in the April 28 appeal, which is seen as a last-ditch attempt to ensure the company can continue its operations at its plant in Gebeng, Kuantan, after July 1.

The Malaysian Lynas plant accounts for half the world’s rare earths supply outside China. The company had said it would temporarily close its plant in mid-July if the licensing conditions remain unchanged.

Environmental groups have raised concerns about the environmental and health risks associated with the refining processes, particularly the potential release of radiation. However, Lynas maintains that such activities have no impact on the typical levels of radiation found in the vicinity of Gebeng.

Rare earths are used to make electronic equipment, batteries, super magnets and other sophisticated equipment.