KUALA LUMPUR, 3 March 2026 (The Capital Post)— The Malaysian government has renewed the operating licence of Lynas Rare Earths in Malaysia for another 10 years, effective 3 March 2026, allowing the rare earth processing plant in Gebeng, Kuantan, to operate until 2036.
In a statement posted on social media, the Australian High Commission in Malaysia welcomed Malaysia’s confirmation of the renewal, stating that the decision “brings additional certainty for investors exploring downstream and upstream opportunities locally.”
The High Commission further noted that Lynas’ ongoing presence contributes directly to Malaysia’s aspirations to build a world-class mine-to-magnet rare earth sector, supporting local employment and strengthening the broader ecosystem of Malaysian suppliers.
Prime Minister Datuk Seri Anwar Ibrahim and Science, Technology and Innovation Minister Chang Lih Kang framed the renewal as a strategic move that balances environmental concerns with Malaysia’s aspirations to develop a world-class rare earth sector and support local jobs. As part of the renewal conditions, Lynas must cease the generation of radioactive waste by 2031 and treat existing waste to neutralize its radioactivity.
The licence extension follows a thorough regulatory review and reflects commitments by Lynas to invest in technology and research and development as part of broader efforts to strengthen Malaysia’s role in the global rare earth industry.
Political History: From “Shut Down” Pledge to Renewal
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The Lynas plant has been one of the most politically sensitive industrial projects in Malaysia over the past decade.
During the 2013 General Election campaign, opposition leaders under the then Pakatan Rakyat banner later reorganised as Pakatan Harapan publicly pledged to close down the Lynas plant if they came into power. Environmental and health concerns were central to their campaign messaging at the time.
Several prominent figures within the coalition had actively campaigned between 2012 and 2013 to halt operations at the plant, arguing that radioactive waste management posed long-term risks. The issue became a major talking point in Pahang and nationally.
When Pakatan Harapan first formed the federal government in 2018, the administration opted for a review and imposed conditions instead of shutting the plant outright. Following the political realignments of 2020–2022 and Pakatan Harapan’s return to power in late 2022, the government has now taken the step of extending Lynas’ licence for a full decade.
The latest renewal therefore marks a significant shift from earlier campaign rhetoric to a policy approach focused on regulatory oversight rather than closure. – The Capital Post
