IAEA SAYS LYNAS PROJECT SAFE

KUALA LUMPUR, June 30 (Bernama) -- The International Atomic Energy Agency
(IAEA) has concluded that the Lynas Corporation Ltd's rare earth plant in
Gebeng, Pahang state, is safe but the Australian company must undertake
improvements in various technical areas before it can proceed to the next stage
of operations.

A report issued by the nuclear watchdog today said it did not find any
instance of "any non-compliance with international radiation safety standards"
in the project.

However, an IAEA review team identified 10 issues for which it considered
improvements were necessary before the next licensing phase of the Lynas
project.

In a joint statement, International Trade and Industry Minister Mustapa
Mohamed and Science, Technology and Innovation Minister Dr Maximus Ongkili said
the IAEA conclusion was consistent with the government's view that Malaysia's
Atomic Energy Licensing Board and the Department of Environment had
professionally discharged their duties and ensured that Lynas complied with the
necessary safety standards.

The report pointed out that Malaysian laws and regulations regarding
radiation safety were comprehensive and conformed to IEAE standards.

Gebeng is a small town and main industrial area in Kuantan, Pahang state.
The town is located near Kuantan Port.
-- BERNAMA