INDEPENDENT PANEL TO STUDY HEALTH & SAFETY ASPECTS OF LYNAS MALAYSIA

KUALA LUMPUR, April 22 (Bernama) -- An independent panel will be established soon to conduct a study on the health and safety aspects of Lynas Malaysia Sdn Bhd's rare earth oxides plant in Gebeng, Kuantan in east coast state of Pahang, to dispel concerns that it poses radioactive threat to the public.

The study is expected to be completed in one month, International Trade and Industry Minister Mustapa Mohamed told a press conference Friday.

Five to seven independent, international and recognised experts in the radiation field will be appointed to the panel, which has been set up following feedback from the people, he said.

The minister said until the study is completed and a decision made by the government, no pre-operating licence would be issued to Lynas by the Atomic Energy Licensing Board.

The company is also not allowed to import raw materials from Australia pending the government's decision on the study findings.

The federal government and state government will make a decision on the project, he said, adding that a review will also be undertaken to ensure that the construction of the facility fully complied with international safety standards.

Mustapa said the health and safety of the people and the environment continued to be the highest priority for the government.

Todate, the Atomic Energy Licensing Board (AELB) and the Department
of Environment is satisfied that Lynas has met the health and safety
requirements and standards.

Work on the Lynas Plant started two years ago after the Australian
miner-Lynas Corp Ltd was granted manufacturing licence in 2008, subjected to compliance with the provisions of the Atomic Energy Licensing Act 1984 and Environmental Quality Act 1874.

The plant is expected to be operational before year-end.

Asked on whether the matter would affect foreign investments into the country Mustapa said that it would not affect investors confidence.

"Foreign investors are also mindful of issues over environment as we are.

"All of them know our rules and regulations and are as stringent as they can be," he stressed.