first feed milestone smsl mill stone

Lynas plant on line, protests to continue
http://www.smh.com.au/business/lynas-plant-on-line-protests-to-continue-20121130-2amf0.html
December 1, 2012
Glenda Kwek
Business Reporter

Members of the group 'Save Malaysia, Stop Lynas' protest outside the Lynas 2012 annual general meeting. Photo: Reuters
A MALAYSIAN environment group says it plans to continue campaigning for the closure of Lynas' controversial rare-earths processing plant, as the Australian miner announced it had started production.

Lynas said it had made its first feed to the kiln at the plant in Gebeng, Kuantan, calling it a milestone for the company.

The plant would reach continuous feed by next week, the miner said, adding that it expected a ramp-up period of three to four months until its first commercial sales and subsequent cash generation.

''This is a significant milestone for Lynas,'' executive chairman Nicholas Curtis said.

Advertisement
''The operation of the LAMP [plant] is now a reality, and it will provide real data that will assure people that the LAMP is entirely safe for our local communities and the environment.''

Production was delayed after legal action from local environmentalists worried about potential health risks.

An Australian adviser to one of the environmental groups, Save Malaysia, Stop Lynas, said the protesters would continue to push for the plant's closure.

''They will continue to pursue the judicial review cases to get the court to revoke the temporary licence given to Lynas on the grounds that Lynas still has no safe solution to tackle their radioactive waste,'' Lee Tan said.

Ms Tan said the group had also commissioned an independent scientific report, which suggested in preliminary findings that there were several environmental issues with the processing facility.

''The Malaysian government has to call an election by next year and the Stop Lynas group will utilise this issue to campaign for voters to vote against the current government,'' she added.

Lynas has rebuffed concerns about the $900 million plant - the world's biggest rare-earths facility outside China - pointing to its success in the Malaysian courts and to the plant's inspection by a team from the International Atomic Energy Agency last year.

The facility has been ready since May but was delayed by legal challenges and the approval process.

''They've been burning a lot of cash keeping the lights on without being able to run the plant,'' said Andrew Harrington of Patersons Securities.

''At last, they're able to do what they've been trying to do for the best part of two years - get going.

''Looking ahead to 2013, they will be in production and in cash flow and even at $40 a kilo, which is the current rare-earth price, they are bound to make pretty good margins.''