Lynas to face fresh legal challenge

Whilst Lynas won a temporary operating licence for its rare earths plant in Malaysia earlier this month, the company will soon be back in court fighting to retain its approvals.

In a statement yesterday Lynas said the Kuantan High Court would next week hear an application for an injunction against the company's temporary operating licence (TOL).

The action is being led by vocal protest group Save Malaysia Stop Lynas, which is aiming to block Lynas from starting production at its rare earths processing plant later this year.

In the lead up to the October 4 hearing the Kuantan High Court has issued an order to suspend any new action on the TOL.

"That interim order is not anticipated to impact on Lynas' planned schedule, because Lynas has planned for first feed to kiln at the Kuantan plant after 4 October," Lynas said.

"At the hearing both Lynas and the Malaysian Government intend to strongly assert Lynas' rights to operate in accordance with the approved and issued TOL."

In a statement yesterday Save Malaysia Stop Lynas said it wanted the Lynas TOL revoked because more study on the plant's environmental and radioactive impact was necessary.

SMSL said the court's decision to hear arguments over the injunction was a "temporary relief and a tiny win" but the battle over the rare earths processing plant was expected to continue.

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