LYNAS PROJECT BRINGS IN SUBSTANTIAL BUSINESS, SAYS MITI SEC-GEN

KUALA LUMPUR (Bernama) - Australian rare earths miner Lynas
Corporation which is building a RM700 million (US$233 million) processing plant
in Gebeng, Kuantan, will continue to invest in Malaysia.

"Every year, they are expected to spend about RM4 million (US$1.33 million
if you include the employment of staff, facilities and chemicals," said
International Trade and Industry Ministry Secretary-General Dr Rebecca Fatima
Sta Maria.

She also said the Lynas project would bring a substantial amount of business
into the area, for Pahang and also for Malaysia including in value-added
exports.

Speaking at a press conference on the findings of experts including from the
International Atomic Energy Agency (IAEA) on the health and safety aspects of
the Lynas Advanced Materials Plant in Gebeng, she said the rare earths business
was a strategic industry with linkages and multipliers to draw other industries
including green technology.

"You can't have green industry and technology if you don't have this as a
start. For me, this is a strategic industry," she added.

As to why Lynas chose Malaysia and not Australia to set up the plant,
Rebecca said investment decisions were made for various reasons, and that Lynas
decided to locate to Malaysia based on business reasons.

"Foreign direct investment follows conducive environment and business
reasons," she said.

In their report, the panel of experts said that they "did not find any
instance of any non-compliance with international radiation safety standards" in
the Lynas project.

Nevertheles, they had identified 10 issues with further recommendations for
improvements.

The review panel visited Malaysia from May 29 to June 3 for a fact-finding
mission and had received subsmissions from a wide cross-section of the public
including resident associations, community groups, non-governmental
organisations (NGOs), professional bodies and political parties.

"There were 13 technical meetings and they had met with 66 individuals.

"They had meetings with Lynas, visited the site, visited the Kuantan port
and they met political parties, NGOs, concerned citizens of Kuantan etc,"
Rebecca said.

Gebeng is a small town and main industrial area in Kuantan, Pahang,
Malaysia.