IAEA SAYS LYNAS PROJECT SAFE

UPDATE ADDS MORE INFO

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, is safe.

However, the Australian company must undertake improvements in various
technical areas before it can proceed to the next stage of operations, it said.

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 improvements
were necessary before the next licensing phases of the project, and subsequently
outlined 10 recommendations.

The review team also added an 11th recommendation dealing with the manner in
which the 10 recommendations should be acted upon.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed and
Science, Technology and Innovation Minister Datuk Seri Dr Maximus Ongkili said
this when announcing the findings of a report by the IAEA review mission on the
radiation safety aspects of the Lynas project.

In a joint statement, the ministers said the conclusion of the IAEA was
consistent with the government’s view that the Atomic Energy Licensing Board
(AELB) and the Department of Environment (DOE) had professionally discharged
their duties and ensure that Lynas complied with the safety standards.

The 55-page IAEA report pointed out that Malaysian laws and regulations
regarding radiation safety were comprehensive and conform to IAEA standards.

The 11 recommendations are aimed at improving the management of the
regulatory function by AELB and other agencies, cover technical aspects, public
communications and a follow-up action.

"The government accepts these recommendations and will announce a timeframe
for their implementation," said the statement.

The report, among others, recommended that Lynas submit a comprehensive
long-term waste management plan before the start of operations for AELB
approval, as waste management is ultimately the responsibility of the company.

The plan should also deal with issues arising from the decommissioning and
dismantling of the plant at the end of its life and remediation.

The report further recommended that a fund, to be financed by Lynas, be set
up to cover the cost of the long-term management of waste, including
decommissioning and remediation.

It said AELB should be strengthened so that it had sufficient human,
financial and technical resources, competence and independence to do its job.

The report emphasised the need to improve public understanding of actions
taken by AELB, especially those relating to inspection and enforcement at the
Lynas plant.

The document also mentioned the possibility of an IAEA-organised follow-up
mission on the recommendations in one or two years' time.

The ministers said the government had taken the position that the future of
the Lynas project would be decided objectively based on facts and reason, not
emotions or politics.

"Before any further licensing approval can be considered, the government
will ensure that Lynas complies fully with the recommendations.

"Until this is done, the status quo remains; there will be no importation of
raw materials into the country, and no operational activities will be allowed on
site," they added.

The government reiterated its position that public safety remained its
highest priority, and was of the view that the rare earth industry must be
properly managed but not avoided.

Rare earth minerals are used in the manufacture of many modern day
appliances and machinery and are critical to the production of the next
generation of high technology and green technology products.

"The key issue is the proper management of such an operation and the
government remains wholly focused on getting this right," the statement added.
-- BERNAMA