Lynas faces fresh legal challenge in Malaysia

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Lynas Corp faces more market uncertainty on Monday after the rare earths group confirmed a legal challenge has been lodged against the Malaysian government’s decision to renew its operating licence.

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In a statement released to the ASX after the market closed on Friday, Lynas said it had received documents filed by three individuals commencing judicial review proceedings in the High Court of Malaya (Malaysia) in Kuala Lumpur.

The grounds of the legal challenge relate to the process followed by the government in reaching its decision to renew Lynas’ licence in August last year despite public concerns over toxic waste from its operations.

Prime Minister Mahathir Mohamad defied an election promise in 2018, and members of his own cabinet, when he agreed to fresh conditions last year that would allow Lynas to continue operating in Malaysia if it agreed to extract the toxic waste offshore.

Lynas was given six months to meet the new conditions and is expected to announce details of its expansion plans that will extract this radioactive waste in WA before being exported to Malaysia for further processing.

The legal challenge states the decision to renew the licence should have been made by the Science and Environment Minister Yeo Bee Yin, and not the cabinet.

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“It is our utmost concern that the same rule of law should be applied to all irrespective of one’s social status or position as required under the rule of law,” said a representative for the individuals who have lodged the legal challenge.

The Prime Minister, other ministers and cabinet members, and Malaysia’s Atomic Energy Licensing Board have also been named as respondents to the legal action.

Lynas played down the likely success of the latest action.

“While every case will be decided on its merits, these individuals (and persons believed to be associated with them) have lodged several previous court challenges, all of which have been dismissed,” said the statement from Lynas.

Lynas extracts rare earth cores, 17 elements crucial to the manufacture of many hi-tech products such as mobile phones, electric cars and wind turbines, from a mine near Perth and then sends the materials to a facility in Malaysia for processing.

Lynas shares closed at $2.46 on Friday. The company is due to release its quarterly results this Friday and chief executive Amanda Lacaze will provide a market briefing. – brisbanetimes


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