The Malaysian Government has dismissed a move to have Lynas Corporation stripped of a temporary operating licence for its rare earths processing plant in Kuantan.
While the decision is a win for the fledging rare earths miner, in making the ruling the Government imposed two additional conditions on the company's licence.
The conditions represent even stricter controls on dust and radioactive material at the company's proposed plant.
In a statement Malaysia's minister of science, technology, and innovation said there was "no strong justification nor scientific or technical decision" to strip Lynas of its licence.
The decision follows a Malaysian High Court ruling earlier this year dismissing another protest against the company.
In a statement protest group Save Malaysia Stop Lynas said it would "take on" the Government in legal action over the plant once a parliamentary inquiry had concluded an investigation.
SMSL also said it was not convinced the new licence conditions would provide an acceptable level of protection.