Lynas Corporation Ltd. (ASX:LYC), a company focused on creating a fully -integrated sour ce of rare earth from mine through to market, has struck back at the increasing political, public, and media pressure that has been directed toward its project in Kuantan, Malaysia. The rare earth element (REE) project gained global attention in February when over 2,000 local residents held a demonstration in an attempt to halt construction. Protesters in the city of Kuantan claimed there is a risk of dangerous radiation from the plant - something that few believe the Malaysian government would be able to cope with if any form of leakage were to occur.
Accusations mountProtests gathered momentum in 2011 after local media reported that the company was taking shortcuts on safety procedures, which led to fears that radioactive run-off from waste material at the plant could potentially seep into local water systems. These allegations were immediately denied by Lynas. According to a recent company presentation, the LAMP facility - already eight months behind schedule - is forecast to be one of the main challengers of China's dominance in the REE sector, with its first phase already 98 percent complete. It should supply approximately 11,000 tonnes of REEs in its first year, with this figure eventually rising to 22,000 tonnes. The first kiln feed is expected during the second quarter of 2012. “Safest rare earths plant in the world” Last week the company expressed optimism for the project when it announced that it is on track to commence production next month after an official in the country called it "the safest rare earths plant in the world." Pol Le Roux, Vice President of sales and marketing for Lynas, said he believes a public hearing set for May 21 in Kuala Lumpur will be the final step in the process. "We have no knowledge of any other procedure, hence we feel comfortable - reasonably comfortable, because we have learned in the last six months that you have to be careful - that we should get it by June this year," he said. The hearing on the injunction application against FMT will be heard on June 12, while the case against SMSL is set to be heard on June 19. Securities Disclosure: I, Adam Currie, hold no direct investment interest in any company mentioned in this article.
Lynas Fights Back Against Rare Earth Plant Criticism from Rare Earth Investing News