protesters take to the streets

http://www.theaustralian.com.au/business/mining-energy/lynas-shares-fell-sharply-after-protesters-took-to-the-streets-in-malaysia/story-e6frg9df-1226283321187

Lynas shares fell sharply after protesters took to the streets in Malaysia

by: Sarah-Jane Tasker
From: The Australian
February 28, 2012 12:00AM

Lynas stock hit by fallout as Malaysian anger grows

Locals protest against the proposed rare-earths processing plant in eastern Malaysia on Sunday Source: AP

RARE-EARTHS miner Lynas's shares took a tumble yesterday following a weekend protest in Malaysia attended by thousands of locals opposed to the company's processing plant.

Lynas, which has almost completed construction of the plant in Gebeng, has faced strong community opposition to its plans because of radiation fears about the facility.

Reports out of Malaysia had protester numbers varying from 5000 up to 20,000, but one consistent picture was one of thousands of locals marching to a field in Kuantan to listen to event organisers calling for the closure of the plant.

The ASX-listed miner has faced strong community opposition to its advanced materials plant and last week informed the market a group of 10 locals had taken legal action in an attempt to stop the facility advancing.

Lynas said last week it had complied, and would continue to comply, with the requirements of the Malaysian government regulatory authorities in relation to the facility. It added that it did not believe there was any basis for the claims made in the proceedings.
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Sunday's two-hour protest was hailed a success by event organisers, who said the "Stop Lynas" campaign had escalated into the biggest environmental issue for the country.

"Today (Sunday) marks the beginning of a nationwide campaign to stop the Lynas rare-earth project," Wong Tack, a key organiser of the event, said. "Malaysians have made our stand and we do not want this hazardous project."

Malaysia's Atomic Energy Licensing Board this month granted a temporary licence for the facility to start operating, with a list of conditions attached.

The licence is valid for two years and, if the miner complies with its requirements, a permanent operating licence could be issued in two years.

Conditions of the licence include Lynas paying $US50 million ($46.5m) in instalments to the Malaysian government as a financial guarantee.

The protest organisers said the granting of the temporary licence had sparked outrage among locals.

The strong Malaysian opposition to the company's plans to process ore from its West Australian mine at the $US200m plant had led the Malaysian government last year to commission an International Atomic Energy Agency review of the processing plant. The agency's report did not find any non-compliance with international safety standards.

It was also reported on Sunday that Lynas's website was hacked with a Malaysian flag and the slogan "Stop Lynas, Save Malaysia" replacing the usual site.

The company's site was still down yesterday, with a message on the homepage stating it was experiencing technical difficulties. Lynas shares yesterday closed 4.65 per cent lower at $1.23.