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Malaysia House of Representatives the twelfth Fifth term REPORT SPECIAL ELECTION COMMITTEE ON LYNAS ADVANCED PROJECT MATERIALS PLANT (LAMP)
DR. 3 IN 2012 MALAYSIA HOUSE OF REPRESENTATIVES The Twelfth (Fifth Division) REPORT SPECIAL ELECTION COMMITTEE LYNAS ON ADVANCED MATERIALS PLANT PROJECT (LAMP)
i i CONTENTS Page Content i Iii List of Appendices PART I INTRODUCTION Page Committee and Terms of Reference 1 Job Duties approach 1 PART II PROJECT BACKGROUND LYNAS ADVANCED MATERIALS PLANT (LAMP) in Gebeng, Pahang Page Project Background The Lynas Advanced Materials Plant (LAMP) in Gebeng, Pahang 5 PART III SESSION PUBLIC HEARING Page Public Hearing Session: - May 10, 2012 University of Malaysia Pahang, Xylophone 9 - May 11, 2012 University of Malaysia Pahang, Xylophone 11 - May 21, 2012 Committee Room 2 Parliament of Malaysia 13 PART IV WORKING VISIT TO PROJECT LYNAS ADVANCED MATERIALS PLANT (LAMP) in Gebeng, Pahang Page Working Visit Project Lynas Advanced Materials Plant (LAMP) in Gebeng, Pahang 15 ii ii PART V ISSUES AS A PUBLIC CONCERN Page The Issues of Public Concern Being 17 PART VI OBSERVATIONS AND RESEARCH COMMITTEE Page Observation and Research Committee 23 PART VII VIEWS AND RECOMMENDATIONS OF THE COMMITTEE Page The views and recommendations of the Committee 61 PART VIII SUMMARY OF COMMITTEE Page Summary of the 69 PART IX APPRECIATION Page Acknowledgements 71 iii iii APPENDIX LIST APPENDIX I - The Issues Raised In Session And Agency Reviews Public Hearing APPENDIX II - Briefing Document Circulation During Visit to LAMP APPENDIX III - Photo Visit to LAMP APPENDIX IV - Letter of Lynas Corporation Ltd., Australia and Lynas Malaysia Sdn. Limited. APPENDIX V - Clarification Regarding Value Property In Kuantan, Pahang by Valuation and Property Services Department (JPPH) APPENDIX VI - Technical Visit Official Report Into Enforcement Agency In Western Australia In 23 To 25 May 2012 DISKS - Report of Proceedings - Memorandum iv 1 1 DR. 3 IN 2012 REPORT SPECIAL ELECTION COMMITTEE LYNAS ON ADVANCED MATERIALS PLANT PROJECT (LAMP) PART I INTRODUCTION Committee and Terms of Reference 1. House of Representatives on Tuesday, March 20, 2012 has approved the proposition Minister Prime Minister proposes: "THAT pursuant to Rule 81 (1) of the Standing Meeting Parliament, the Council took the following resolution: (A) the Select Committee on Project Lynas Advanced Materials Plant (LAMP) was appointed for the purpose of review of issues to the attention of the public and safety standards of this project; (B) the Select Committee shall be composed of nine (9) Members of Parliament: (I) five (5) members of the National Front (including a Minister as Chairman); (Ii) three (3) members of the opposition, and (Iii) one (1) member other than a member of the National Front or opposition. (Independent) If elected Chairman is absent from a meeting, The Committee shall elect a Chairman from among the members of the Committee present who will hold office only on the day it elected only; (C) The duration of the appointment of a Select Committee is three (3) months. If the Select Committee is unable to perform the duties of the submitted within this period, the matter shall be brought back to 2 2 The House of Representatives for the purpose of the extension of the appointment, and (D) Special Select Committee shall prepare and present a statement of the containing related recommendations and statements of the Committee shall presented to the House of Representatives to agreed-upon or in any manner ordered by the Council Meeting. " 2. The Selection Committee met on Wednesday, March 21, 2012 for carry out its responsibilities of appointed members of the Committee Select About Project Lynas Advanced Materials Plant (LAMP). Statement on the Selection Committee were presented in the House of Commons on the day Thursday, March 22, 2012. Members who have been appointed are: (I) YB Dato 'Seri Mohamed Khaled Nordin; (Member for Pasir Gudang area) (Minister for Higher Education) as Chairman (Ii) YB Dato 'Haji Abdul Rahman bin Haji Ahmad Dahlan; (Members of the Area Belud) (Iii) Mr YB Teng Boon Soon; (Member of the Tebrau area) (Iv) The Honourable Madam Hajah Nancy Shukri Hj; (Member of The Sadong Stem) (V) Mr YB Liang Teck Meng, and (Members of the Junction Area Renggam) (Vi) YB Dato 'Zulkifli Noordin bin. (Member of the Kulim New City) 3. Select Committee on the Lynas Advanced Materials Plant Project (LAMP) (hereinafter referred to as "the Committee") hereby present the report of the Committee to the Council as above resolutions. Approach the job ' 4. Notification of the Committee have been published on the website of Parliament (Http://www.parlimen.gov.my) which included approval 3 3 inception, the purpose of its founding, members of the Committee as well as schedule and public hearing dates. Proposals can also be sent via e-mail ([email protected]). 5. The Committee held six (6) meetings as follows: (A) The first meeting on Wednesday, April 18, 2012 for discuss the terms of reference and preparation and travel planning committee; (B) The second meeting was held on Thursday, May 3, 2012 for briefed by government agencies directly affected the Atomic Energy Licensing Board (AELB), Malaysian Investment Development Authority (MIDA), Ministry of Health (MOH), Department of Environment (DOE), Kuantan Municipal Council (MPK) and the Department of Homeland Security and Health (DOSH); (C) the third meeting on Monday, June 4, 2012 aimed at listening briefing on the report Technical Visit to Western Australia by MOSTI / AELB discuss the report Committee to be tabled in Parliament; (D) The fourth meeting on Tuesday, June 5, 2012 aimed at get ideas and suggestions from Prof. Dr. Beauty Hisham Hashim - Professor of Environmental Health & Research Fellow of the International Institute for Global Health (UNU-IIGH) and The committee will discuss the report presented in the House of Representatives. (E) meeting on Thursday, June 7, 2012 aimed at The committee will discuss the report presented in the House of Representatives; (F) sixth meeting on Monday, June 11, 2012 for finalize the recommendations of the Committee and receive reports Committee to be tabled in Parliament. 6. Terms of reference have been decided in the meeting of the Committee on 18 April 2012 shall apply as follows: (I) review the safety issues, health and environment relation to the LAMP project, and (Ii) reviewed the process and implementation of licensing procedures and approval based on the provisions of the law and safety standards in force. 4 4 7. The Committee has found representatives of organizations / associations and individuals in public hearings at the following places and dates: DATE VENUE May 10, 2012 (Thursday) Senate Meeting Room Chancellery building Universiti Malaysia Pahang, Xylophone, Pahang May 11, 2012 (Friday) Senate Meeting Room Chancellery building Universiti Malaysia Pahang, Xylophone, Pahang May 21, 2012 (Monday) Committee Room 2 Parliament of Malaysia 8. The Committee also met with experts in the field rare earths from abroad after the International Symposium on Rare Earths on Wednesday, May 9, 2012, at 4:30 pm at the Renaissance Hotel, Kuala Lumpur. They were: (A) Mr. Jack Lifton, founding Principal of Technology Metals Research, LLC; (B) Mr. Alastair Neill, Executive Vice President of Strategic Metals dacha; (C) Dr. Chun-Hua Yan, Professor of Peking University; (D) Mr. Cristoph Wilheim, Scientist, Karlsruhe Institute of Technology, and (E) Dr. Meor Yusoff bin Meor Solomon, Senior Researcher, Agency for Nuclear Malaysia. 9. In addition to meetings and public hearings, the Committee has hold a Working Visit to the Lynas Advanced Materials Plant (LAMP), Gebeng, Kuantan, Pahang, on 10 May 2012. 5 5 PART II PROJECT BACKGROUND LYNAS ADVANCED MATERIALS PLANT (LAMP) in Gebeng, Pahang 1. Project Lynas Advanced Materials Plant or LAMP is the project company Lynas Malaysia Sdn. Limited. which is a wholly-owned subsidiary Lynas Corporation Ltd., Australia. The company has applied for approval of the Government Malaysia to build a plant for the processing of raw materials concentrates lantanid (lanthanide concentrates) imported from Mount Weld in Western Australia, for the production of rare earth oxides and carbonates (rare earth oxides and carbonates) in Industrial area, Kuantan, Pahang. Project This will involve an investment of RM2.5billion. 2. The term refers to a group of rare earth metals that are common but difficult released and occurs naturally. It is the element that important in green technology innovation, including in various manufacturing Modern equipment such as wind turbines, disk drives, catalylic converters, mobile phones, flat-panel displays and advanced pet clothing. World demand for rare earths have grown and are expected to exceed supply in future. At present, China produces about 97% of the supply world. 3. LAMP project is receiving widespread coverage in early 2011 when a particular community residents' associations, organizations non-governmental and professional bodies began to express concern about the security status Lynas project mainly on the impact of the health and safety of the public. This issue arose after New York Times on March 8, 2011 issue an article entitled "Taking a Risk for Rare Earth "which also contains a statement by Nicholas Curtis, Chief Executive Officer of Lynas Corporation Ltd., "It will cost four times as much to Standard and Poor build and operate a Refinery in Australia, has much Selatan Higher labor and Costs contruction. Australia is also rates home to and enviromentally minded and Politically powerful Green party ". This fear is enriched with leakage at the Fukushima nuclear plant in Japan's tsunami tragedy extension at 11 March 2011. 4. In the wake of public concerns about the health and LAMP project safety, on 22 April 2011, the Government decided to get help International Atomic Energy Agency (IAEA) to established the International Independent Expert Panel further recognized report of the findings of the Panel. The objective of the establishment of this Panel is to review the health and safety LAMP project. On 13 May 2011, 6 6 Government announced the appointment by the International Independent Expert Panel IAEA which consists of nine members, four of IAEA experts and the rest of Canada, India, United Kingdom, Netherlands and Africa South. All of them are experts in their respective fields related to the health and safety of radiation. 5. Members of this panel have visited Malaysia from May 29 to June 3, 2011 for gather information on the legislation, process and procedures implemented by local authorities and seek views from the public, including residents' associations, non- government, professional bodies and political parties. On June 30, 2011, the Panel of Experts IAEA International Independent has submitted a full report to The Government of Malaysia and exhibited to the public. The report concluded that there was no breach of the standard international radiation safety found. The IAEA report also stated that the laws of Malaysia relating to radiation safety is comprehensive and complies with IAEA standards. 6. However, the Panel also made 11 recommendations improvements before the next license issued by the Government of Malaysia to the Lynas. Among the recommendations are: Lynas plans to submit long-term residue management comprehensive AELB approval before commencing operations; AELB reinforced with personnel, finance and the need technical to perform their duties, and Enhanced engagement and communication activities to increase understanding of the public about radiation safety. 7. The Committee was informed that the Government has accepted all recommendations in the IAEA report and ensure that they are implemented. 8. In the early stages, the Lynas has identified Industrial Estate Bat, as Kemaman as the location of the project. The proposed project is was presented and approved by the Action Committee Industrial Authority on 25 January 2007 after getting reviews AELB and DOE technical about Lynas application and the two The department states that there is no objection subject to the Atomic Energy Licensing Act 1984 [Act 304] and the Environmental Quality 1974 [Act 127]. On February 9, 2007, Lynas was granted a letter of approval Manufacturing Licence interim Ministry of International Trade and Industry (MITI) to produce rare earth oxides and carbonates in the Area Kalong Industrial Estate, Kemaman. 7 7 9. Committee was informed that on August 10, 2007, Meeting Cabinet Committee on Investment (JKMP) has been informed by representatives of the State Government that the State Government has reject the Lynas project. Decision of the State Government is based on project experience Asian Rare Earth Sdn. Limited. (ARE) in Lahat, Silver. JKMP noted the State Government's decision and asked MITI / MIDA check with other state governments in particular Pahang on the possibility of relocating the project. 10. On August 28, 2007, Lynas announced that a series of meetings with the State and agreed choose Industrial Area Gebeng, Kuantan as infrastructure near the port, the availability of gas supply, water and chemicals as well as the existence of skilled labor. 11. Lynas then MITI approval of manufacturing license for produce rare earth oxides and carbonates in Industrial Area Gebeng, Kuantan into force on January 22, 2008 that are subject to Atomic Energy Licensing Act 1984 [Act 304] under control AELB and Environmental Quality Act 1974 [Act 127] under the control of DOE. The Committee also noted that the LAMP project has obtained approval of the Environmental Impact Assessment (EIA) of DOE Pahang state on February 15, 2008. 12. The Committee noted that the LAMP project is also subject to approval of licenses AELB. On August 17, 2007 Lynas has given AELB approval for a Class A License (Manufacturing - Placement Site and Construction). Class A License (Manufacturing - Level Control While (Temporary Operating License - TOL)) was approved on 30 January 2012. However TOL has not been issued and LAMP still does not operate. 8 9 9 PART III SESSION PUBLIC HEARING Public hearings 1. The Committee held public hearings to find representatives of organizations, associations and individuals registered at the place and the following dates: SESSION PUBLIC HEARING ON THURSDAY, 10 MEI 2012 IN SENATE MEETING ROOM, BUILDING Chancellery, UNIVERSITY MALAYSIA PAHANG, xylophone, PAHANG DATE / DAY ASSOCIATION / ASSOCIATION / INDIVIDUAL May 10, 2012 (Thursday) 1 Senior Citizens a. Mr Tan Chin Hua - Presenter b. Mr. Liaw Sen Lan - Presenter c. Mr. Chan Woon Zet - Presenter d. Mr Chiew Yoke Chin - Presenter e. Mr Lee Ah Chai 2 Individuals a. Mr. Yong Kim Keong - Presenter b. Mr. Soo Cheng Wah - Presenter c. Mr. Choi Soon Kiang - Presenter 3 Malaysian Medical Association (MMA) Dr. Carmen Chew - Presenter 4 Pahang Bar Committee a. Mr. Hon Kai Ping - Presenter b. Madam Noor Jehan Abu Bakr - Presenter c. Mr Abdullah Hamza Johari d. Mrs. Rahiza bt Zulkifli e. Mrs. Amalia, daughter of Mohamad Said 1,010 DATE / DAY ASSOCIATION / ASSOCIATION / INDIVIDUAL May 10, 2012 (Thursday) 5 Save Malaysia Stop Lynas a. Mr Tan Bun Teet - Presenter b. Tuan Haji Ismail Abu Bakr - Presenter c. Mr. Go Yuh Min d. Mr. Ou Da Foo 11 11 SESSION PUBLIC HEARING ON FRIDAY, 11 MEI 2012 IN SENATE MEETING ROOM, BUILDING Chancellery, UNIVERSITY MALAYSIA PAHANG, xylophone, PAHANG DATE / DAY ASSOCIATION / ASSOCIATION / INDIVIDUAL May 11, 2012 (Friday) 1 Person Dr. Badaruddin bin Syed Ali Syed - Presenter (Representative of population Balok, Doctor of Medicine) 2 Federation of Malaysian Manufacturers (FMM) Eastern Branch Hon. Dato "Mas" ut bin Awang Samah [Chairman] - Presenter 3 Individuals Mr. Mohamad bin Amir Menteng - Presenter (Chairman JKKK Kg. Boxes, Tanjung Api) 4 MCA Pahang a. YB Chang Hong Seong [Assemblyman Teruntum] - Presenter b. Hon. Dato 'Eg Fook Heng - Presenter c. Mr Chiew Yoke Theng - Presenter d. Mr Foo Kok How - Presenter e. Mr Choo Kay Boon - Presenter f. Mr Lee Yong Wei (MPK Council Members) g. Mr. Chin Miew h. Mr Khau Daw You i. Mr Yew Eng Seong j. Mr Yong Fook Siong k. Mr. Chow Kok Leong l. Mr. Loo Jen Yeh m. Mr Khoo Khiam Ping n. Mr Mrs Siau Nyun o. Mr. Razaki Omar p. Mr Tan Chok Seng q. Mr Low Sow Long r. Soon Mr. Shy Chwan s. Mr Yap Choon Meng t. Mr. Fan See Yan u. Mr Low Yek Meng 1,212 DATE / DAY ASSOCIATION / ASSOCIATION / INDIVIDUAL May 11, 2012 (Friday) 5 People Mr Ariffin bin Ahmad - Presenter 6 The combination of Tiong Hua Association Kuantan a. Hon. Dato "Chow Liong - Presenter b. Mr Pang Woon Ping - Presenter c. Mr Kok Chee Hing - Presenter d. Mr. Lai Min Sing e. Mr. Loo Je Yeh 7 Individuals Mr. Mat Azahar bin Mat FAQ - Presenter 8 Individuals Prof. Dr. Jose Rajan - Presenter (Faculty of Industrial Science, University Malaysia Pahang) 13 13 SESSION PUBLIC HEARING ON MONDAY, 21 MEI 2012 IN COMMITTEE ROOM 2 PARLIAMENT BUILDING DATE / DAY ASSOCIATION / ASSOCIATION / INDIVIDUAL May 21, 2012 (Monday) 1 Person Mr Mohd Fawzi bin Ibrahim [Manager (Part Assessment), Nasir, Sabaruddin & Associates, Kuantan] - Presenter 2 Individuals Dr. Abd. Rahman bin Omar - Presenter (Expert Nuclear Physics) 3 Individuals Hon. Dato 'Dr. Looi Hoong Wah - Presenter (Physician - Specialist Hospital) 4 Individuals Hon. Prof. Dato 'Dr. Proom Promwichit - Presenter (Experts on Radiation Safety and Nuclear Reactor) 5 People Prof. Dr. Jamal bin Othman - Presenter (Economist, Natural Resources and Environment - Center for Economic Studies UKM) 6 Individuals Hon. Prof. Associate (K) Datuk Dr. Fuad bin Ismail - Presenter (Physician - Department of Radiotherapy & Oncology, Medical Centre) 7 Individuals Prof. Dr. Ahmad Termizi bin Ramli - Presenter (Department of Physics, Universiti Teknologi Malaysia) 1,414 DATE / DAY ASSOCIATION / ASSOCIATION / INDIVIDUAL May 21, 2012 (Monday) 8 Individuals a. Prof. Ng Kwan Hoong - Presenter (Department of Biomedical Imaging, Faculty of Medicine) b. Mrs. Sia Leng Suan 9 Individuals Prof. Prof Dr. Wan Ahmad Kamil bin Wan Abdullah - Presenter [President of the Malaysian Medical Physics] (Expert Medicine - Department of Radiology, USM) 2. Witnesses consisting of organizations / associations and individuals which among others consists of experts associated with the rare earth have come forward during the public hearings held. Report proceedings and related memorandum accompanying this in compact disc, and it is also available in the Resource Centre, Parliament Malaysia. 3. The issues raised and agency review in public hearings are shown in Appendix I. 15 15 PART IV WORKING VISIT TO ADVANCED MATERIALS PLANT PROJECT LYNAS (LAMP) in Gebeng, Pahang 1. Committee held a Working Visit to the Lynas Advanced Materials Plant (LAMP) in Gebeng, Kuantan on Thursday, May 10, 2012. 2. In the session of the Working Visit, the Committee was briefed by the Lynas among others, on: a. The issue of employee and public safety; b. Environmental issue of waste emissions to air and water, and c. The issue of waste management research and development, commercialization of permanent storage site residues and wastes. 3. Title briefing presented are as follows: a. Rare Earths Industry Cluster b. Salient Points On Lynas Advance Material Plant: i. Project Status; ii. When In Operation; iii. Spin-off Due To Lynas; iv. Technical Expertise; v. Why Lynas In Malaysia; vi. Safety Standards; vii. Production General Information; viii. Residue Characteristics; ix. Residue Storage; of x. Geotechnical Monitoring; and xi. Baseline Monitoring. c. Synthetic Mineral Product Development. 4. Circulation of the briefing document is in Appendix II. 5. The Committee also visited the plant and site facilities deposit residue (Residue Storage Facility - RSF). 6. Visit the picture shown in Appendix III. 16 17 17 PART V ISSUES AS A PUBLIC CONCERN (A) SAFETY AND HEALTH IMPACT AND MONITORING PROJECT LAMP Safety Aspects of Radiation Exposure (Radiation Exposure) 1. The level of radiation exposure is a major concern by the public. 2. The need to establish an independent committee comprising by qualified experts. 3. Risks from operations LAMP. 4. Statement of concern about the radiation and disease cancer as a result of the ARE project in Bukit Merah, Lahat, Perak. Environmental aspects 5. Balok River pollution, heavy metal pollution and contamination Air is one of the issues of concern to the public. Issue the preparation of Detailed Environmental Impact Assessment (Detailed EIA - DEIA) also raised by certain parties. 6. Baseline study (baseline) around the LAMP and Balok River should carried out. LAMP environmental monitoring activities and industries in Industrial area, Kuantan. 7. Heavy metal pollution of the river and into the sea of ??potential in the food chain (fish). 8. Air pollutants such as sulfur dioxide (SO2), nitrogen oxide-oxide (NOx), ammonia gas and fluorine gas from LAMP. 9. Effects of heat and acid rain that can result from operations LAMP. Health aspects 10. The level of radiation exposure can cause the number of cancer cases and increased leukemia are the main concern the public. 1,818 11. Explanation of the scientific evidence shows no relationship between cancer cases with background radiation levels are high. No evidence that the increase in cancer cases in Bukit Merah, even after 20 years of operation ARE stopped. 12. The need to conduct a study (Health Impact Assessment - HIA) in the EIA and RIA, as described in the article by environmental health specialist Prof. Dr. Jamal Hisham Hashim bin. 13. Dr statement. Carmen Chew on internal effects of radiation. Residue Management Aspects 14. Residue management consists of a number of issues such as risk and radiation hazards, storage at RSF, re-use of the residue (reuse and recycle), permanent disposal facility (Permanent Disposal Facility - PDF) and residue repatriation to their country of origin (return back to country of origin) is an issue of concern to the public. 15. What steps have been taken by the factory to ensure the health and the environment around us is not disturbed as a result of the manufacturing process. 16. Fears over large residue storage facility and difficult to control. 17. Concerns about the risk of a leak as the layer thin plastic that is used by the LAMP. 18. Concerns over the management of the residue from the process of LAMP. 19. Residue Storage Site Safety (Residue Storage Facility - RSF) that stores three main residue from the Water Leach LAMP process Purification (WLP), Flue gas desulphurization (FGD) and Neutralisation Under-Flow (NUF). The issues raised are: a. RSF built in swampy areas; b. High endurance-Density Polyethylene (HDPE) liner; c. system leak liner (HDPE liner); d. contamination of groundwater, and e. Balok River pollution can lead to complaints. 20. Handling residue in RSF - dust pollution that waste containing radioactive waste and heavy metals such as lead, 19 19 cadmium and chromium, flying in the air when the weather is dry because no cover. 21. If residue Lynas can not be recycled, it should be disposal sites and a study conducted DEIA the Toxicity Characteristic Leaching analysis taking Procedure (TCLP) to 40 parameters including organic and inorganic materials and as well as nine different heavy metals to assess suitability for disposal. (B) APPROVAL PROCESS AND LICENSING 1. Doubts of the public for issuing licenses to LAMP for allows it to operate into the dispute, while conditions are complied with fully unmet. 2. Why Malaysia has not adopted standards for effluent discharge tailor-made for the rare earth industry, which also contains radioactivity as in China, which has just GB26451 Code into force in the year 2011. 3. China standard GB26451 Code submitted to the DOE Pahang in December 2011 there was no response. 4. A study should be conducted DEIA for approval by the DOE, before TOL issued by the AELB. 5. DEIA study should be conducted that includes: a. not only radioactive elements, there are also chemical waste, water and even if there is no air pollution. b. need to use data from a pilot plant in Australia Lynas. c. Lantanid ore sampling and analysis in at least 3 laboratory berakreditasi (lanthanide ore minimum sampling and testing at Anisa ACCREDITED laboratory) the presence of non-governmental organizations (NGOs). 6. Factory Tioxide (M) Sdn. Limited., A rare earth processing plant in Kemaman with the same process with LAMP, has conducted a study DEIA in 1989. 2,020 7. Weaknesses in the Preliminary EIA Report (Preliminary EIA - PEIA) that approved by DOE on February 15, 2008: a. explanation in Section 4.4 the existing environment and under sub 4.6 Environmental Baseline Investigation showed no that the Lynas factory is a factory that produces rare earth radioactive material but just an ordinary factory; b. not studied water containing radioactive contamination to the River Beams; c. Conceptual explanation of the RSF is design, and rather than the detailed design. Conceptual design is not taking into account local data such as geochemical, climate and etc. and it is primitive; d. not clear about the type of mineral that is processed, only lanthanide Ores only; e. sampling during mining activities in Mount Weld, Australia not settled, either using a core technique sampling in accordance with ASTM D 2113 or not; f. no Calculation of mass balance in the report that calculates amount of chemical content in the waste Lynas. Information the Remaining chemical composition obtained from the report Safety Case For LAMP Project provided by the Lynas after directed by the panel had come IAEA audit in June last year. From the report, we will know apparently Lynas radioactive waste contains so many metal heavy, toxic heavy metal is lead Selatan, cadmium, arsenic, chromium, nickel and others; g. no Material Safety Data Sheet (MSDS) for chemicals, and h. no complete chemical composition of the solid waste of the other two NUF and another FGD. 8. Proposal for monitoring radioactivity levels and readings were made in point source release of the flue gas as surveillance air quality under the Standard C, Clean Air Regulations. This can monitor the actual conditions of gas produced in keradioaktifannya for ambient air monitoring is not precisely because there is mixing of the air and from other sources. (C) STRENGTHENING ENFORCEMENT AGENCY FOR PROJECT LAMP 1. Perception by the public on the effectiveness of enforcement the LAMP project. 21 21 2. Enforcement by law enforcement agencies such as the DOE and control pollution of industries in Industrial area needs to be improved. 3. DOE should have technical experts to assess the EIA report for all projects in the future. 4. Enforcement issues. 5. Enforcement by law enforcement agencies as earnest. 6. Enforcement by law enforcement agencies to the plant operations Lynas other than radioactive enforcement, such as monitoring the use of chemicals such as sulfuric acid in the process plant Lynas and so on, is necessary to ensure compliance to the rules. (D) INVESTMENT AND SOCIO-ECONOMIC 1. Perception that there is no economic benefit to the country as given incentives for 12 years. 2. Impairment of real estate in town. 3. Questioning the tax exemption to Lynas for 12 years. 4. Questioning the economic benefits derived from LAMP development. 5. Why Lynas to operate in Malaysia and not in Australia. (E) CHANNEL COMMUNICATIONS AND INFORMATION DISSEMINATION 1. Less information and explanation to the public about LAMP project proposal. 2. Questioning the transparency of this project in terms of approval and explanation of the Lynas. 2,222 3. Less clarification on risk communication and the importance of public involvement in decision making, especially in a project that could have an impact on health. 4. The allegations against the AELB and DOE-called parties Lynas defend public engagement session, where Lynas never present. 23 23 PART VI OBSERVATIONS AND RESEARCH COMMITTEE Committee to submit the findings as follows: (A) SAFETY AND HEALTH IMPACT AND MONITORING PROJECT LAMP 1. CLASSIFICATION OF FACTORY LAMP 1.1. The Committee noted that LAMP is a factory chemistry based on product classification MITI approval which will be issued the rare earth oxides and carbonates. While in under DOSH, LAMP categorized as manufacturing plants. DOE LAMP categorize as a chemical factory based on the activities prescribed under the Environmental Quality Act 1974 [Act 127]. 1.2. The Committee noted the AELB NOT categorize factory Lynas as nuclear installations (nuclear installation) or the factory for thorium or uranium production as a set of activities is for a chemical factory. In the interpretation of Section 2 of Act 304 that is, instead of LAMP nuclear reactor that is, any structure containing nuclear fuel in such an arrangement allow nuclear fission chain crutch (self-sustaining chain process of nuclear fissionable) occur therein without an additional neutron source or any factory using nuclear fuel nuclear to produce or use it for the purpose moving or for any factory using nuclear to produce nuclear fuel or any nuclear plant which is designed or adapted including processing of nuclear materials irradiated nuclear fuel, or any facility where nukelar material placed or storage incidental with such material. 1.3. The Committee took note of the report of IAEA experts to make observation that the Lynas plant is a non-processing plants unique but is similar to other compounds processed in the same as there are in other parts of the world. "When viewing the proposed rare earths processing facility in a global context, the review team Makes the Following Observations: (A) Many similar compounds producing similar plants are operating in u parts of the world - the proposed Lynas plant is not unique in this regard; 2,424 (B) The Planned Importation of feedstocks from Australia and management of the process residues Within Malaysia is in line with mineral processing practices worldwide, including Those involving Naturally occuring radioactive material (NORM). " [Report of the International Review Mission on the Radiation Safety Aspect of a Proposed Rare Earths Processing Facility (Lynas project) on 29 May - June 2011 by the IAEA, Refer to page 1]. 1.4. Based on expert opinion Mr Alastair Neill, Lynas plant also non-mining activities. [See panel presentation papers experts International Symposium on Rare Earths in Hotel Reinaissance dated May 7, 2012 organized by the Academy of Sciences Malaysia - Mr. Alastair Neill, rare earth experts from Canada who is Executive Vice President of Strategic Metals dacha page 2] 1.5. The Committee noted that the Lynas plant process involves Chemical and Physical Reactions (cracking, leaching, extraction and finishing) in producing lanthanum. No Nuclear Reactions in the process of the Lynas plant. Nuclear reaction involves breaking unstable element to other elements and can produce particles (Alpha, beta or gamma) and / or electromagnetic radiation spontaneously. 1.6. The Committee noted that the LAMP have sent DOSH Form 5 (Notification of Industrial Activity) to DOSH. After evaluated, the materials submitted are not included Liquified Petroleum Gas (LPG) and the quantity of such materials is under 10% volume threshold (threshold quantity). By the LAMP classified as non-major hazard installation and does not need comply with the Occupational Health and Safety regulations (Control of Industrial Major Accident Hazards, 1996 (Control of Industrial Major Accident Hazard - CIMAH) 1996. Part Major Hazard, DOSH Headquarters has issued an official letter related this matter dated 29 March 2012 to Lynas. 1.7. The Committee noted that based on the classification above, the Lynas plant is not a plant that could potentially cause major accidents (Major Accident Hazard). 2. IONIZING RADIATION MONITORING POWER (radioactivity) 2.1. The Committee noted that the raw materials (concentrates lantanid) that will be used by the Lynas plant is not defined as radioactive material, but as a material containing elements natural radioactivity (Naturally occuring radioactive material - NORM). 25 25 Accordingly, residu1 to be removed from the LAMP also radioaktif2 not defined as waste, but is defined as the residue containing NORM. As a material containing elements natural radioactivity (NORM) that contain uranium and thorium, it not controlled in most other countries but controlled in Malaysia by AELB. Set control limits are 1 Becqueral per gram. These standards are enforced on LAMP project. 2.2. The Committee noted that there is no possibility for one has to directly exposed to thorium either internal or external (internal or external) of the resulting residue in plants Lynas in quantities that could harm or even exceed limits. 2.3. The Committee noted that the data used in Radiological Impact Assessment (RIA) is based on data theory and laboratory experiments to be verified during the TOLLS ensure the safety of the plant and process. 2.4. The Committee also noted that the data used Radiological Impact Assessment report (RIA) for the purpose of TOL application is based on Radiological baseline data which were obtained before the operation. 2.5. The Committee noted that the Government through the AELB always make the monitoring of radioactivity levels of water, air and the ground around the area. Monitoring carried out in the area factory, transportation routes, and also at a radius of 1 km, 5 km, 10 km and 20 km from the plant. 2.6. The Committee recommends that constant monitoring level radiation (radiation level) conducted by AELB and Lynas in periodically under Act 304 and the regulations thereunder such as the Radiation Protection Regulations (Licensing) 1986, Radiation Protection Regulations (Transport) 1989, Rules of the Atomic Energy (Radiation Protection Basic Safety) 2010, Energy Licensing Regulations 1 Residues are substances that can be used or recycled, which contains radioactive material natural thorium-232. These radionuclides have half life of 14 billion years can assumed to be stable. Radioactive waste means 2 things or articles containing or contaminated with radionuclides radionuclide activity concentration or activity in excess of cleanup levels and not be used again. 2,626 Atomic (Radioactive Waste Management) 2011 and other regulations associated with it. 2.7. The Committee recommended that the RIA updated at each licensing stage and from time to time according to the recommendations Report of the International Atomic Energy Agency (IAEA). 2.8. The Committee noted that international standards adoption has taken into account the risks associated with both internal and external radiation (internal and external radiation). Is not right to make assumptions about the internal radiation is not taken into account in radiation risk assessment. 2.9. The Committee took note of the raw materials brought in not classified as radioactive international standards because they are ores containing naturally occurring radionuclide. In Malaysia This material was in accordance with the Radiation Protection Regulations (Transport) 1989, to be controlled and labeled as containing radioactivity of natural uranium or thorium content of more than 1 Becquerel per gram (Bq / g) compared with 10 Bq / g in Australia and also international standards (IAEA). More stringent regulations have been inadvertently increase public concern although international standards allow higher limits. 2.10. The Committee recommended that the legal requirements regarding the transportation of radioactive materials aligned with latest international standards at a time thought fit for dispel fears of the public about the dangers of radioactive. 2.11. The Committee took note of the radioactivity of thorium concentrations in WLP residue expressed as 5.87 Bq / g in accordance with legislation must be controlled. 2.12. The Committee took note of the concerns of the public ARE the issues in Bukit Merah, Lahat, Perak which has produced rare earth raw materials based tailings (monazite) in the early years 80s. The mill was Dissolved and Dinyahkontaminasi (Decommissioning and Decontamination - D & D). A disposal facility was built in Bukit Kledang for waste storage and components factory. D & D process is made under the Act that came into force 304 at the time, 1985. Board was made responsible for the regulatory process to this day. 27 27 2.13. The Committee took note of the fact Mr. Alastair Neill, who Describing the LAMP project is factory state-of-the-art in production of rare earth after his own visit the factory. The Committee noted the statement by Professor Dr. Jose Rajan (Rare Earth Industry Experts and Nuclear) that the technology advanced radiation protection is now under control. 2.14. The Committee noted that there are differences between raw / starting materials and residues produced by the ARE and LAMP: 2.14.1. Raw materials to be processed in LAMP is concentrated lantanid containing thorium content of 0.16% or equal to 1.600 parts per million (ppm) (conversion units of Bq / g equivalent to 5.71 Bq / g thorium). 2.14.2. Tailings (ie monazite) used by the ARE is produced of tin mining activities contains 7% of thorium ARE is 45 times higher. 2.14.3. For the residues produced by LAMP, the WLP has thorium content of 0,165% or equal to 1.650 ppm (Conversion units of Bq / g equivalent to 5.9 Bq / g thorium). When comparison is made with the industry based on the use of ARE example of tailings, the resulting residue thorium content of 8% which is 50 times ARE higher. Table 1 shows a comparison of the LAMP and ARE. Table 1: Comparison of LAMP with ARE ASIAN LAMP RARE ITEMS EARTH (ARE) CLARIFICATION Concentrate raw material lantanid from Mount Weld, Australia Tin tailings (Tailings) - monazite LAMP - imports of crude from Australia ARE - raw materials sourced of factories tailings Thorium content (Th) in the material crude 0.16% 7% ARE - 45 times more higher than the LAMP 2,828 ASIAN LAMP RARE ITEMS EARTH (ARE) CLARIFICATION Concentrations of radioactivity in waste ARE 0165% 8% - 50 times higher than the LAMP Technology and control 2010-an Control system computer 1970-an Technology manual, pneumatic and mechanical LAMP - use advanced technology and processing methods rare earth below atmospheric pressure and control systems computer. ARE - use technology manual, pneumatic and mechanical. Chemical Process Naturally Occurring Radioactive Material (NORM) Chemical Technologically Enhanced Naturally Occurring Radioactive Material (TENORM) ARE - concentration radionuclide activity naturally in waste increased (TENORM). LAMP - residue results have Concentration of natural radionuclides are almost the same (No improvement) Legislation atomic energy / Parties In power Regarding Licensing Act Atomic Energy 1984 [Act 304] (Atomic Energy Licensing Act 1984 [Act 304]) Starting in 2006, in the energy-related atom, is controlled by AELB Not controlled entirely by The objects of the Act Radioactive 1968 (Radioactive Substances Act 1968). After 1985, the level dissolution, after Act 304 enacted to replace The objects of the Act Radioactive 1968 that repealed, controlled by the AELB. 29 29 ASIAN LAMP RARE ITEMS EARTH (ARE) CLARIFICATION System monitoring MITI - License manufacture Authority Local - CCC approval DOE - EIA Approval AELB - data 12 months before operation, RIA AELB - inspection periodic and environmental monitoring about a month ARE - A Class License (Manufacturing) and G (Dispose) LAMP - TOL (Manufacture A, E and G) 2.15. The Committee noted that the LAMP technology the latest, most advanced and sophisticated than ARE. 2.16. The Committee recommends that the facts on the difference LAMP radiation dose levels in a more easily controlled than by ARE communicated to the public at large. 3. Residue Management LAMP 3.1. The Committee noted that there are three types of residue will be derived from LAMP namely: i. WLP ii. FGD iii. NUF All the residue produced will be stored temporarily in the RSF located within the plant site before final disposal (final Disposal) is implemented. 3.2. The Committee noted that the Lynas will do program of research and development (R & D) of residues produced for the purpose of re-use and commercialization. Measures This is in line with IAEA statement on the practice of best in addressing residue. "The review team was encouraged by the approach shown by Lynas Malaysia Sdn Bhd Towards the management of solid residues from the proposed rare earths processing plant, in That it was actively investigating Ways of safe recycling and reusing Standard and Poor residues in order to minimize the That amount of radioactive waste would need to be disposed of. This 3,030 approach is a good example of how to fulfil Principle 7 (Protection of Present and Future Generations) of the Fundamental Safety Principles (IAEA Safety Standards Series No.. SF-1). " [IAEA Report page 6] Potential use or recycling of residues (reuse or recycle) for example, to use landfil and base material for roads (material for road base, car park, etc..) could refer to the following three sources: i. Report IAEA General Safety Guide (GSG-1): Classification of Waste radioactivity 2009; states that one of the options for the management of radioactive waste can be allowed this residue for road construction (para 2.20 page 11); ii. Report Health Protection Agency, Centre for Radiation, Chemicals and Environmental Hazards, UK (HPA-CRCE-001) in 2012 (T Anderson and S Mobbs) and iii. Papers Phosphogypsum (PG): Uses and Current Handling Practices Worldwide at 25th Annual Lakeland Regional Phosphate Conference (Julian Hilton). The Committee recommended use of all residues (Recycle) shall be monitored by the AELB and materials produced must be below 1 Bq / g, although there countries such as the UK allows level 5 Bq / g. 3.3. If R & D to commercialization residues and failed, residue should be managed and stored in PDF, if failed deploy and build PDF, all residues will be sent back to the original source, if necessary. In this, Lynas has committed in writing and such required in TOL. Details of the conditions of approval are TOL the following: i. Lynas must submit all relevant aspects of PDF; ii. PDF site plan and must be submitted regardless of research and development (R & D) to commercialization, recycling and reuse of residual materials; iii. PDF locations to plan and submitted and approved within time and shall not exceed 10 months from the date TOL production; iv. Lynas must comply with the security / financial guarantee prescribed under the relevant law and in accordance with recommendations made by the Lynas of U.S. $ 50 million paid to the Government of Malaysia in installments. This is subject to review designated by the Board if later; and 31 31 v. The Board may appoint an independent consultant to evaluate Lynas compliance to standards and regulations and costs incurred by the licensee. 3.4. The Committee recommends that the Lynas to submit results research recycling, waste reduction (waste minimization), the use and commercialization of the residue produced by LAMP within 10 months after the TOL removed. 3.5. The Committee recommends that the Lynas to submit PDF locations to plan and AELB approval within and shall not exceed 10 months from the date of issue of TOL. 3.6. The Committee recommends that the Lynas to submit PDF DEIA if construction continues for DOE approval the discovery of Radiological Impact Assessment (RIA) before any PDF related license applications submitted to the AELB. 3.7. The Committee recommended if recycling research and the location can not be identified or approved, Lynas shall carry residue produced by LAMP out of Malaysia. In this regard the Committee noted that the Lynas Corporation Ltd., Australia and Lynas Malaysia Sdn. Limited. had submitted their letters dated 23 February 2012 and 6 March 2012 a record commitment to LAMP carry out residue from Malaysia. [Refer to Appendix IV] 3.8. The Committee took note of during the TOLLS Lynas will can only process stages with increase in raw material provided that each stage is safe. 3.9. The Committee took note of the license period TOL, cumulative amount of residue produced by Lynas is is limited to a maximum of one and a half years. 3.10. All radioactive residues shall be handled in RSF located in in LAMP site, which is coated with a waterproof material that is HDPE high quality, lining clay and detection system leakage. 3,232 3.11. Committee recommends AELB impose appropriate to LAMP to take additional measures to ensure RSF overall protection so that dust does not fly to independently or air leakage into the ground. The Committee noted that all residues will always be kept in a 25% - 40% humidity. 3.12. The Committee noted that if the LAMP able proves that the residue WLP, NUF and FGD exceeded the controlled by AELB and can be controlled as wastes under Regulations of the Environmental Quality (Scheduled Wastes) Regulations 2005, residues must be handled in treatment facilities and licensed by the DOE's disposal. 3.13. The Committee noted that any proposal to reuse of wastes should obtain application Special Wastes Management approval under Regulations of the Environmental Quality (Scheduled Wastes) Regulations 2005 and provisions of other laws related. 3.14. The Committee recommended the LAMP publicize the the public about effective control measures that implemented to ensure the operation and functioning of RSF safe. 4. ENVIRONMENTAL QUALITY MONITORING 4.1. The Committee noted that the LAMP was, is and will undertake regular monitoring of water quality, air, noise and water the soil around the project area. 4.2. The Committee noted that the Government through the DOE always make the monitoring of air and water quality around the area. The Committee was informed that there are two stations monitoring of water quality upstream and downstream of Balok River and one station Air monitoring at Park Balok Makmur, Gebeng. 4.3. The Committee recommends that enhanced monitoring by DOE under the Environmental Quality Act 1974 [Act 127] and regulations thereunder as Quality Regulations Environmental Quality (Clean Air) Regulation 1978, Environmental Quality Regulations (Industrial Effluent) 2009, Quality Regulations 33 33 Environmental Quality (Sewage) 2009 and Quality Regulations Environmental Quality (Scheduled Wastes) Regulations 2005. 4.4. The Committee recommended baseline data environment and environmental monitoring that are observed by the DOE and Lynas posted on the website every three months. 4.5. Committee recommends environmental audits conducted by the third register with the DOE to check the status of compliance LAMP for the Environmental Quality Act 1974 [Act 127] and regulations thereunder, in each operating level LAMP six months. 5. PUBLIC HEALTH MONITORING 5.1. The Committee recommended health baseline study covering key aspects such as the number of cases of leukemia, cancer, congenital malformation, asthma and Upper Respiratory Tract infection were (URTI) led by the Ministry of Health. The study may be published as public documents. 5.2. The Committee recommended the Health Impact Assessment study (HIA) conducted simultaneously with the RIA study next. 5.3. The Committee noted that the incidence of cancer and leukemia at Red Hill can not be associated with the ARE factory because the interval a short (5 to 10 years), the dose received workers are low, but no employees reported suffering from cancer or leukemia. Instead, it is alleged to have occurred among non-workers. The claim that there is an increase up to 100 times, if true, ought to be seen at present, 20 to 30 years after operation ARE. However, no concrete evidence on rates increase in cases of cancer and leukemia from Bukit Merah. 5.4. Committee recommends further study of cancer incidence and leukemia in Red Hill, led by the Ministry of Health carried out with AELB cooperation. 5.5. The Committee noted that the radiation at low levels may pose a risk to health, such as X-rays in medicine. However, the Committee noted international community agreed to limit radiation exposure in 3,434 Level 1 miliSieviert (mSv) per year for the public and 20 mSv per year for radiation workers is at a safe level. 5.6. The Committee noted that according to RIA Report in which worst-case scenario (worst-case scenario) have been taken into account for the project LAMP, scientific evidence presented by experts radiation safety and nuclear reactors have expressed LAMP project is safe. They explain the radiation dose rates to workers and the public of the LAMP project respectively at average of 2 mSv and 0002 mSv per year is safe because data showed that this rate is lower in the range of doses radiation environment in Peninsular Malaysia at the rate of 1 to 10 mSv per year. The Committee also noted that RIA report stated that scientific studies have showed no correlation between radiation dose rate environment this the incidence of cancer. 5.7. The Committee noted that there are differences of opinion among medical practitioners and internal emitters thorium effects on human health. 5.8. The Committee noted that all claims should be based on scientific facts and compare with the industry LAMP equivalent, not with nuclear power plants, processing plants thorium and thorium mining activities, which are at risk significantly higher health. 5.9. The Committee noted that the risk of getting cancer of the Lynas factory activity in the long term, the amount of thorium are needed, either by swallowing, inhaling or injected into the human body. As explained by some physicians, the total exposure arising from Lynas activities not allow such exposure occurs. 5.10. The Committee took note of explanation from the experts that the nature of thorium is safe because it has features that insoluble in water and has a high affinity for clay. Thorium also has a half-life of 14 billion years, and this can considered stable. 5.11. The Committee recommended for the purpose of continuous monitoring, a series of cohort studies (ie to run a follow-up study period of time), led by the MOH on cases 35 35 related diseases around the theater should be carried out and certain amounts to be made available for this study. 6. QUALITY MONITORING OF TANKS CONCRETE CONSTRUCTION 6.1. The Committee took note of an independent monitoring unit various agencies (PWD, AELB and Nuclear Malaysia) is carrying study to evaluate the concrete tank wall alleged unsafe. Report earlier this Unit indicates that the tank was constructed according to design specifications and meet the standards of BS8110-2-1985, The 3.2.4. (B) APPROVAL PROCESS AND LICENSING 7. Approval Status 7.1. The Committee took note of the necessary approvals before Lynas operates approvals and licenses from several agencies including the MITI / MIDA, Local Authorities - MPK Kuantan, DOE, AELB, and DOSH. 7.2. Manufacturing License (MITI / MIDA) 7.2.1. Prior approval of manufacturing license is granted, the Authority has apply technical review by the DOE and AELB. 7.2.2. DOE and AELB, although there are no obstacles to post a comment Lynas application for a license, impose Provided that the company complies with the relevant provisions of the stipulated in the Environmental Quality Act 1974 and Atomic Energy Licensing Act 1984. 7.2.3. Action Committee on Industry (ACI) chaired by the Chairman of MIDA and MITI comprising, Ministry of Finance, Inland Revenue Board (IRB), Royal Malaysian Customs (RMC), the DOE, the Department of Immigration, National Bank, Economic Planning Unit, Department of Prime Minister (EPU) and MIDA consider applications from Lynas and agreed to recommend approval of the license Manufacturer. Provisional Approval Letter issued to Lynas on February 9, 2007 with the prescribed conditions. 3,636 7.2.4. JKMP been informed of the rejection by the Lynas project State Government on August 10, 2007. JKMP suggested that the company consider other locations for placement project. On August 28, 2007, Lynas inform Gebeng selection as a suitable location. 7.2.5. On 11 October 2007, agreed to transfer site JKMP from Telok Kalong, Rajasthan to Gebeng, Pahang based on the recommendation of the State Government of Madhya Pradesh subject to approval by DOE and AELB. This approval covers incentives, the statutory income tax exemption for next 12 years. 7.2.6. On October 24, 2008, Lynas has given Manufacturing License Coordination Act 1975 which came into force from 22 January 2008 to operate in the Industrial Area Gebeng, Kuantan, Pahang for output (products) rare earth oxides and carbonates that are categorized under output chemistry. This license is issued after the approval of Report EIA by the DOE and site approval from the State Government Pahang. Among the conditions of approval are: i. Site in Gebeng Industrial Estate, Kuantan, Pahang subject to the approval of the relevant State and the Department of Environment; ii. Companies should train Malaysians to transfer of technology and expertise can be channeled in all levels; iii. The Company shall comply with all provisions of the Act 304 as set by AELB and Quality Act Environment 1974 and the rules and orders thereunder as determined by the DOE. iv. The Company shall perform the project as approved and in accordance with law and other regulations stipulated in Malaysia. 7.3. Department of Environment (DOE) 7.3.1. Approval of the EIA report under the requirements of Section 34A of the Act Environmental Quality Act 1974, must be obtained from the DOE, prior to project approval from the Authority, 37 37 Approve the relevant ministry, MPK and the State Pahang through the State Executive Council (Exco) and Pahang State Economic Planning Unit (EPU) in the case of Lynas. 7.3.2. Lynas has obtained approval from the DOE EIA Report State of Gujarat through their letter dated 15 EIA Report 78 February 2008 with the approval of the conditions necessary followed by the Lynas. 7.3.3. Approval of the Environmental Management Plan (Environmental Management Plan, EMP) must be obtained before the project started, as stipulated in the approval report. Lynas has obtained the approval of the EMP Pahang DOE on December 10, 2008 for the construction phase and on 23 December 2011 for the operational phase. 7.3.4. Written approval for the installation of combustion equipment fuel and air pollution control equipment under Regulations Environmental Quality (Clean Air) Regulation 1978, Environmental Quality Act 1974 must be obtained. Written approvals have been obtained by the Lynas as The following, for: i. installation of air pollution control equipment - scrubber on October 26, 2009; ii. installation of fuel burning equipment - rotary kiln and chimney on January 31, 2010; iii. installation of fuel burning equipment - rotary kiln at March 1, 2011; iv. installation of fuel burning equipment - boiler on August 2, 2011; v. installation of fuel burning equipment - power on August 2, 2011; vi. installation of air pollution control equipment - scrubber on August 5, 2011; vii. installation of fuel burning equipment - boilers (boilers) on August 22, 2011; viii. installation of air pollution control equipment - scrubber on 11 November 2011; ix. installation of air pollution control equipment - concentrate dust collectors and stack on 11 November 2011; of x. installation of air pollution control equipment - calcined crushed dust collectors and flue on 11 November 2011, and 3,838 xi. installation of air pollution control equipment - Dd Oxide dust collectors and stack on 11 November 2011. 7.3.5. Written notification for the installation of treatment system Effluent Regulations under the Environmental Quality (Industrial Effluent) 2009, the Environmental Quality Act 1974 submitted to DOE Pahang on 26 April 2010. 7.3.6. Written notification for the installation of treatment system waste 'under the Environmental Quality (Sewage) 2009, Environmental Quality Act 1974 has Pahang submitted to DOE on December 20 2010. Clarification on the issue DEIA: 7.3.7. The Committee noted that the EIA Report approved on February 15, 2008 after fulfilling the requirements Section 34A (2) of the Environmental Quality Act 1974. In the year 2008, no need for LAMP through the study procedures DEIA. Therefore the EIA conducted in 2008 is through PEIA procedure. 7.3.8Purchase. The Committee noted that the EIA is is a project planning tool development before the project is approved and implemented. LAMP is now in construction and was completed through the planning then it was past the EIA requirements and no longer relevant to through DEIA procedure. 7.3.9. The Committee noted that the technical aspects of and scientific, critical issues are also examined in detail in PEIA. 7.3.10. The Committee noted that on June 20, 2011, prescribed activities using radioactive materials and produce radioactive waste listed as activities necessary through DEIA procedure. This is consistent with improvements to the EIA procedure that takes into account the public interest. For the approved EIA Report previously, this requirement does not apply. 39 39 7.3.11. The Committee noted that the report should DEIA EIA prepared for the proposed project on materials radioactive and produce radioactive waste submitted to the DOE after June 20, 2011. 7.3.12. The Committee noted that in terms of the EIA Lynas project, the same evaluation methods applicable to both procedures and DEIA PEIA, as details project in terms of the raw materials used, chemical processes, project capacity, risk analysis and waste produced similar no water, air, sludge is not changed until now. 7.3.13. The Committee noted that the EIA Report LAMP were exhibited together a report for public attention for one month from 30 May 2011 until 28 June 2011. This is in line with procedures DEIA. EIA report can also be read through the DOE website. 7.4. Local Authorities - MPK 7.4.1. Planning Permission sought by the Lynas on 22 January 2008 and was approved on June 5, 2008. Application Planning permission is in accordance with the provisions of Section 21 Town and Country Planning Act 1976 [Act 172] for the purpose of ensure that any proposed development is consistent with local plans of Local Authorities, MPK. 7.4.2. Building Plan Permission sought by the Lynas and has approval stages from 27 August 2008 to 20 February 2012 in accordance with the provisions of Section 70 of the Street, Drainage and Building Act 1974 [Act 133]. 7.4.3. Truth Road Plan, Earthwork and Drainage has approved on 18 February 2008, 29 December 2011 and 24 April 2012 in accordance with Section 70A of the implementation based on 133 of the Act. 7.4.4. Lynas plant has not issued a Certificate of Completion and Compliance (Certificate of Completion and Compliance - CCC) in under the By-Laws 25-29, Laws Buildings (Gujarat) (Amendment) 2007. Five agencies have conduct inspections from 14 to 16 May 2012 is Fire and Rescue Department, Public Works Department (PWD), 4,040 Water Supply Department (JBA), Indah Water Konsortium (IWK) and Tenaga Nasional Berhad (TNB). 7.4.5. Under paragraph 70 (23) (a) and (b) of the Street, Drainage and Building Act 1974 [Act 133] Local Authorities - MPK have the authority to issue written notice to Key people submit (Principal Submitting Person - PSP) or Person Submission (Submitting Person - SP) to remedy the non-compliance occurs apart given the power to issue written directions to the PSP to detain CCC until compliance corrected. 7.4.6. After obtaining the approval of CCC as a whole, Lynas should apply from MPK Premises Licence under Laws Trade, Commerce and Industry. 7.4.7. Premises Licence Committee recommended only issued by SLM to Lynas after meet all approval and issuance of a license from the AELB. 7.5. Department of Occupational Safety and Health (DOSH) 7.5.1. The Committee noted that the Lynas plant site Malaysia Sdn. Limited. was registered as a construction site with DOSH JKJ103 form by the main contractor of the United Resources Group and was approved on June 9, 2010 for the first phase under section 35 of the Factories and Machinery 1967 [Act 139]. i. Lynas has made an application for the registration of plant and general assembly through form JKJ 105 dated May 3 2011. ii. DOSH has also received an application for register for phase two of the construction site and the approved on December 8, 2011. iii. Preliminary inspection of the installed machinery made continuously. At present the truth to install machinery has not been issued by DOSH. 41 41 iv. The next process is to obtain Lynas allowed to run machinery. v. Certification requires a certificate of fitness machines be continuous. vi. The Lynas also have to comply with other regulations Factories and Machinery Act 1967 [Act 139] and the Occupational Safety and Health Act 1994 [Act 514] and regulations thereunder. 7.5.2. The Committee noted that all production license is under process and the implementation of licensing and based on the provisions of the current legislation and standards security force. 7.6. Atomic Energy Licensing Board (AELB) 7.6.1. Power source is issued a license to Lynas provided under Paragraph 12 (1) (b) of the Atomic Energy Atomic Energy Act 1984 [Act 304] as Lynas deal with radioactive material. 7.6.2. Class A License (Manufacturing - Placement Site) i. Class A License (Manufacturing - posting site) Lynas was approved on 17 August 2007. License is issued for a period of two years from 19 September 2007 to 18 September 2009. This license was renewed for period of two years commencing 19 September 2009 to 18 September 2011, and the next two years commencing 19 September 2011 to 18 September 2013. ii. For the purpose of issuing licenses Class A Licence (Manufactures - Placement site), the Lynas has submitted information for environmental monitoring program before operation for a period of 12 months for baseline background radiation level before operation. iii. Lynas also submitted information on by RIA of them include: a. About installation and proposed activities. 4,242 b. Site's physical characteristics: geology, geological, kajihidro, meteorological, earthquake studies, plants, animals and biota aquatic. c. Distribution of the population around the site, including flow future population growth and distance population centers from the site. d. Present land use at the site and in around the site. e. Environmental impact assessment and radiological of normal operation, including initial analysis the expected radiation hazard. iv. In addition, the Lynas has also filed information: a. About the storage facilities for radioactive (Sealed sources (sealed source) and causes no sealed (unsealed source) - [concentrates lantanid]) in site. b. About liquidation plan (decommissioning) basic and monitoring arrangements after handling. 7.6.3. Class A License (Manufacturing - Construction) i. Class A License (Manufacturing - Construction) Lynas has approved on August 17, 2007. License issued to period of two years from 19 September 2007 to 18 September 2009. This license was renewed for a period Two years commencing 19 September 2009 to 18 September 2011, and the next two years commencing 19 September 2011 to 18 September 2013. ii. For the purposes of the application / get Class A Licence (Construction), the Lynas has submitted information general layout and detailed design plan facility , including safety design of the planned. This design plan must be confirmed by Professional Engineer (PE) registered. iii. In this case, before any part of the facility built and developed, all major plans and drawings shall be submitted to the relevant authorities (Professional Engineer) for approval. Slow drawings and approved materials can not be 43 43 changed while the facility is built and developed unless the approval authority has bertkenaan obtained. iv. Lynas also submitted engineering plans Details on water diversion facilities, processing and detailed monitoring plan and contingency measures for the construction phase The facilities include a description of the measures proposed to control the plant site drainage. v. Lynas also submitted information on with the statement about the accident consists of: a. Statement of accidents can cause accident and cause the release of waste and hazardous materials that are not planned; b. Statements regarding the potential effects of accidents and departure to the health and safety workers, the public and the environment; c. Statement on the program for the inspection and The proposed maintenance to prevent of the accident and departure, and d. Statement about preparedness programs and emergency plans and mitigation measures to overcome accidents and departure. vi. In addition, the Lynas has also filed information about chemical hazards and the expected radiation to workers and the public during the operation The proposed normal installation, taking into account the physical and chemical characteristics and the radioactive content was unexpected for all effluent to be discharged and all emissions from the facility. 7.6.4. Class A License (Manufacturing - Level Control Meanwhile - TOL) i. Lynas also submitted information on Radiation Protection Program before TOL Among the approved include: a. Description of the measures proposed to control of radiation exposure, including program radiation control during operation 4,444 designed for employees, the public and the environment environment, together with a complete list of services and support facilities. b. Detailed medical surveillance program. c. Program for initial and periodic training for employees about general safety and radiation protection. d. Facilities and equipment designed to contain spills and procedures followed in handling radioactive material spill. e. Plans and procedures proposed for prevent loss, theft or unauthorized use radioactive material truth. f. Plan for monitoring during operation the quality and quantity of effluent to be discharged and all emissions from the facility include: Frequency and sampling Type of equipment and methods of analysis will be used Contingency plans in the event of abnormal results g. Description of the proposed procedure to prevent accident and contingency plans proposed in the event of an accident. h. Handling procedures and storage of radioactive materials. ii. On 13 May 2011, the Government of Malaysia announced appointment of the Independent International Panel of Experts from the IAEA for review the health and safety aspects of the project Lynas due to concerns about the project, which expressed by the public. iii. Independent Expert Panel IAEA mission conducted an assessment of Lynas project from May 29 to June 3, 2011. Report IAEA Independent Expert Panel has been made public in June 30, 2011. Improvement proposals submitted to the Government of Malaysia (including Lynas) and have been implemented, including: a. Lynas as additional requirements, have submit before commencing operations, a plan specifying methods of approach is a long-term waste management, in the management of solid residues after the WLP 45 45 plant closings, along with the Safety Case as a supporting document to the plan submitted. Safety Case to address issues such as below: future land use (determined after consultation with stakeholders); dose criteria to protect the public; term evaluation; security function (safety Functions) (eg containment, isolation and inhibition); methods for identification and selection scenarios, including scenarios in which the facility storage of wastes at the site where the Lynas have the possibility of becoming a facility WLP solids disposal; any steps necessary to control of the active and / or passive. When the Safety Case is created, reports RIA for The overall plant facilities updated accordingly. b. Lynas as additional requirements, has been TOLL submit before approval, plans for manage waste from liquidation activities (Decommissioning) and a resolution (Dismantling) factory at the end of plant life. RIA and Decommissioning Plan (Decommissioning Plan) is required to updated accordingly. c. Board was to impose additional conditions that Lynas using the data from the results radiological and environmental monitoring obtained when Lynas plant operation to get more accurate dose assessment for workers and public. RIA is also required to be updated accordingly. iv. AELB opening temporary office (in the site Lynas) was inaugurated on July 9, 2011 for the purpose of effective monitoring. v. Assessment of license applications have been made based on The following additional requirements: 4,646 Evaluation of the technical documents Lynas to license application by the Technical Expert Review Panel. Evaluation of public review by the Committee Public Consultation (JKPA). vi. The Committee noted that the Lynas TOL has approved on January 30, 2012. However licenses have not been issued and are Lynas still not operate. 7.6.5. Class E license (Import) Class E license to import raw materials concentrates lantanid from Australia to Malaysia was approved on January 30, 2012. However, the license has not been issued until today. After this issuance, each consignment must issuance of import permits. 7.6.6. Class G license (storing Before Disposal) Class G license to store while the residue (which resulting from the processing plant) in the facility RSF storage at the plant site located in Gebeng (Prior to permanent disposal in PDF) was approved on 30 January 2012. However, the license has not released until now. 7.6.7. Prevalence Study of Cancer and Congenital anomalies Lynas has been directed to conduct a study on collection of cancer incidence data in Industrial Area Gebeng that will serve as baseline data for the project Lynas. This study is a further condition for TOL and be carried out before, during and after the plant is operating. Lynas has submitted a report Preliminary Report on Cancer Prevalence in Kuantan Within Gebeng Industrial Estate, 1999 - 2011 to the AELB on October 24, 2011. The study report for the second phase have been submitted to the AELB on May 17 2012. 47 47 7.6.8. Independent Monitoring Unit Committee for conducting the audit buildings, infrastructure and plant facilities Lynas Committee of Independent Monitoring Unit has been established to conduct an audit of the buildings, infrastructure and Lynas plant facility. 7.6.9. Appeal to the Minister of MOSTI and Applications Judicial Review related Lynas TOL i. Appeal to the Minister of MOSTI under Section 32 Atomic Energy Licensing Act 1984 [Act 304] Appeal to the Minister of MOSTI under Section 32 Act 304 was presented by Tan Bun Teet and five another by Messrs. Bastian Vendargon on February 7 2012. On March 26, 2012, three of which appellant Tan Bun Teet, Syed Talib Syed Sulaiman and Hasimah Ramli, has withdrawal. Three other appellants, namely Ismail Abu Bakr, Abujavalli a / p V Raman and through Messrs Tan Ah Meng RS Pani & Associates has continued its appeal. Hearing of the appeal was heard by the Honorable Minister of MOSTI on 17 April 2012 at the Malaysian Nuclear Agency. MOSTI Minister still consider carefully all information submitted to it, and at this time, yet to decide on appeal said. ii. Judicial Review No: R2-25-35-02/12 between Zakaria Abdullah and nine other AND Licensing Board Atomic Energy, the Director General of Environmental Quality and Lynas (M) Sdn. Limited.) Judicial Review Application No: R2-25-35-02/12 in Kuala Lumpur High Court has been presented by Zakaria Abdullah and nine other by Messrs. Kanesalingam & Co. dated 17 February 2012 on Atomic Energy Licensing Board, the Director General of Environmental and Lynas (M) Sdn. Limited. Application Judicial Review was heard the first time at 27 February 2012, the second time on March 20, 2012 and the third on 4 April 2012 at the Kuala Lumpur High Court. On 12 April 2012, High Court Judge Kuala Lumpur the following decisions: 4,848 a. preliminary objection raised by the Attorney General Country (on appeal to the Minister of MOSTI under Section 32 of Act 304) is allowed, and b. application for permission (leave) filed by Applicant in the notice of motion is denied. 7.6.10. All new information and all changes to the plans, the design design and conduct of the operation made the TOL real level if there is to be submitted to the AELB in Safety Analysis Report before full operating license to be considered for approval further. 7.7. Independent Expert Panel Findings International International Atomic Energy Agency (IAEA) 7.7.1. The Committee took note of the report of the IAEA that no discovery of any non LAMP of international radiation safety standards. Result Independent Expert valuation IAEA found that the Lynas project Malaysia Sdn. Limited. has complied with all the provisions legislation, whether at the national or international standard or virtuous deeds. More precisely, the panel IAEA finds relevant national legal framework regulation of radiation safety standards in Malaysia is comparable, but in some aspects over standard international practice. [Page 10, Report of the International Review Mission on the Radiation Safety Aspect of a Proposed Rare Earths Processing Facility (the Lynas Project) on 29 May - June 2011 by the IAEA] 7.7.2. The Committee noted that there are 11 recommendations and technical improvements which have been received by the IAEA adopted by the Government of Malaysia. [Refer to page 4 to 6 IAEA Report] 7.7.3. The Committee noted the IAEA recognition of AELB expertise in enforcing and overseeing project Lynas. "The review team index.htm particular note of the dedication, commitment and the professionalism displayed by Malaysian AELB in regulating the Lynas Project ". [Refer to page 6 of the IAEA report] 49 49 (C) STRENGTHENING ENFORCEMENT AGENCY FOR PROJECT LAMP 8. The Committee noted that apart from the recognition IAEA in the International Independent Panel Report, expertise AELB officers also recognized at the international level where they are appointed to the various committees, organizations and bodies internationally to provide expertise in the field of literature. Among them: i. Chairman of the IAEA Director General "s Advisory Group on Nuclear Security or "AdSec"; ii. Members of the IAEA Commission on Safety Standards (CSS); iii. Members to the IAEA Radiation Safety Standards Committee (RASSC); iv. Members to the IAEA Nuclear Security Guidance Committee (NSGC); v. Members to the IAEA Nuclear Safety Standards Committee (NUSSC); vi. Members of the IAEA Transport Safety Standards Committee (TRANSSC) and vii. Members to the IAEA Waste Safety Standards Committee (WASSC). 9. The Committee recommended based on the load and field AELB additional task that is extensive, staffing structure and AELB necessary financial provisions specially reinforced. 10. The Committee also recommends that other enforcement agencies LAMP project specifically regulating DOE, DOSH module and also empowered with the above recommendations. 11. The Committee recommended that the establishment of branch offices DOE and AELB respectively located in the industrial area Gebeng hastened to meet regulatory requirements and monitoring more responsive. 12. The Committee recommended a Coordinating Committee Established for LAMP Enforcement chaired by the Local authorities and comprises of MPK AELB, DOE, DOSH and MOH. 5,050 (D) INVESTMENT AND SOCIO-ECONOMIC 13. PROPERTY VALUES 13.1. The Committee took note of the allegations that the construction LAMP project has affected the drop in property values ??in around Gebeng, Kuantan, Pahang. However, the party making the allegation did not submit any evidence to support the allegation said. 13.2. The Committee also took note of the presentation in the session public hearing indicating that based on the Property Market Report 2011 issued by the Valuation and Property Services show for the first five years namely 2007 to 2011, the pattern of property values ??around the theater is increased. Rating is based on sales transaction / purchase properties recorded by the Valuation and Property Services (JPPH). 13.3. The Committee noted the explanation JPPH, Ministry Finance on June 6, 2012 which confirmed that through the study conducted on several types of residential properties in the vicinity Kuantan city shows the market value has increased or remained stable for the period of 2007 to the first quarter of 2012. The study was not show any reduction based on transaction records JPPH properties. [Refer to Appendix V] 14. INCENTIVE TAX EXEMPTION 14.1. The Committee noted that the Lynas had sought 100% Income Tax Exemption for 15 years. Although However, after evaluation and consultation, has JKMP consider and agree 100% Income Tax Exemption on statutory income under section 127 (3) (b) of the Income Tax Act 1967 [Act 53] for a period of 12 years to a Lynas Malaysia Sdn. Limited. Tax incentives is one of the mechanisms for attract investment into the country as stipulated under the Promotion of Investments Act 1986 [Act 327]. 14.2. The Committee noted that for projects strategic and high impact, the Government through JKMP / Economic Council (EC) to consider the provision of incentives other than those provided under Act 327. 51 51 14.3. Among the factors to be taken into account in determining a strategic project is the High-impact are: i. Involve new and emerging technologies; ii. Establishing industry chain; iii. Production projects or activities the potential to attract new investments and projects that related; iv. Involve high capital investment with the long development, and v. Contribution of Gross National Income (Gross National Income - GNI) high. 14.4. The Committee noted that the Lynas project is strategic and high-impact based on merit, tax exemption for 12 years has been given to Lynas Malaysia Sdn. Limited. 15. ECONOMIC BENEFITS 15.1. The Committee noted that the economic benefits will gained from this project, in terms of total investment, the opportunity local employment and technology transfer. Apart of the LAMP project has the potential to attract investments especially in the downstream sector of the new high-tech and environmentally friendly Lynas will use the product as a raw material / input. 15.2. The Committee noted that the project will LAMP contribute to the economy through: a. The increase in foreign exchange earnings to investments of RM2.5 billion; b. Technology transfer by providing training for RM2.7 million a year to local workers; c. Spending by 1 percent of gross sales year for R & D. 50 percent of this amount must be spent on R & D activities of the residue management; d. Generating economic activity services of RM65.8 million a year and the use of utilities such as electricity and water of RM52.8 million a year; e. Creation of employment opportunities to 400 permanent employees (employees local except 4 from China and one from India) and 200 contract workers (local); f. The potential to attract new investments, particularly in the downstream sector high-tech products that will use the Lynas as raw materials / inputs such as manufacture of mobile phones, 5,252 disk drives, catalytic converters, wind turbines, hybrid car batteries and flat-screen display; g. Spin-off to the local upstream industry support: i. New sulfuric acid plant with an investment Gebeng of RM200 million; ii. Enlargement of hydrochloric acid factory in Batam, investment RM100 million, and iii. Additional Facility supplier of hydrated lime, RM5 million. 15.3. The Committee noted that the current industrial policy is towards the high-tech industry, safe and environmentally friendly achieve high-income countries. However, the industry is still subject to current legislation to ensure safety, health and environment. 15.4. Committee is of the view that the public should have complete and accurate information on a project to be carried out to avoid any confusion and speculation arises if the approval is granted. 15.5. The Committee recommends that 1 percent of spending on R & D of the gross sales of each year as required, 50 percent of them to carry out R & D activities are supervised by a committee will be set up while the other 50 per cent for R & D activities are supervised by the AELB residue management. 15.6. The Committee recommended that all R & D activities conducted in Malaysia. 15.7. The Committee recommended the involvement of local operators to involved in high-tech industries downstream using rare earth products. 15.8. The Committee recommended the promotion of R & D activities in Centers of local universities with technology rare earth and related residue management. 15.9. The Committee recommended when there is a local industry using the LAMP project products as raw materials exist in the country, appropriate measures such as introduce export taxes implemented. This ensures the supply of raw materials for local industries is sufficient. 53 53 16.PEMILIHAN LAMP OPERATES IN MALAYSIA AND NOT IN AUSTRALIA 16.1. The Committee noted that in January 2004, Lynas has get the extension of a license from the Government of Western Australia to operate in Meenar Industrial Park, Perth (original license granted to Asthon Rare Earth Pte. Ltd.. which was bought by Lynas Corporation Ltd.. in 2003). However, the company find it is not economically viable to operate in Australia as the cost infrastructure and utilities such as water and electricity high. For example, the cost water utilities in Australia is RM6.00 per cubic meter compared to the cost of Malaysia totaling RM0.84 per cubic meter. While the cost of electricity is RM0.23 per kilowatt hour compared to RM0.96 per kilowatt hour Australia. For the cost of the used chemicals, caustic soda, Lynas obtain price RM500.00 per tonne from RM1, 500.00 per tonne in Australia. 16.2. The Committee noted that at present, Gujarat Water Supply Management Berhad (PIPE) to supply 275 meterpadu hour to LAMP. When the new plant operating Panching in January 2013, the water requirement of 500 per hour meterpadu LAMP for full operation will be supplied without affect the water needs of the local population. 16.3. Industrial area, Kuantan be given the option it is close to the Kuantan Port, the availability of gas supply, water and chemicals, and there is enough skilled labor petrochemical industries in the country. 16.4. The Committee noted that the selection of Malaysia by Lynas Corporation Ltd., Australia as the location for the project LAMP is made based on commercial considerations and investment policy Malaysia. Of 16.5. The Lynas reported that, apart from Australia and Malaysia, Lynas also received approval to operate in China. But due to The Chinese government has imposed export quotas limit, Lynas decided not to continue operations in China. Terms of quota This export is being challenged by a number of countries, namely the United States, Mexico and the European Union under the Settlement mechanism Disputes World Trade Organization (WTO). 16.6. The Committee noted that there was a proposal build a rare earth complex at Whyalla, South Australia by the Arafura Resources Limited. This proposal is in the doing research 5,454 Environment Impact Statement (EIS) required by the Government of South Australia. At the same time, the company is conducting a consultation with the public, to disseminate information and get feedback on the project. Construction of the complex is expected to will commence in 2013 and will take 18 to 24 months to complete. Commercial production is expected to commence in 2015. 16.7. The Committee noted there were allegations by some that the standards adopted in Australia higher from Malaysia. However, this assertion is not supported with any documents by the parties involved. In this regard, MOSTI official technical visits to law enforcement agencies in Western Australia on 23 and 25 May 2012 to verify documents and permits submitted by Lynas Malaysia Sdn Bhd. and official clarification on several issues that prosecuted. 16.8. The Committee took note of the issues that have been informed by Authority of Western Australia are as follows: a. No legislative or administrative requirements for Lynas factory houses like this, outside the range 30 kilometers from populated areas; b. There is no requirement by the authorities to waste / residue produced by industries such as Lynas returned to mine the original; c. Returns waste / residue into Western Australia can implemented if compliance with legislation and standards determined by Western Australia and this is already happening for importation fly-ash3 containing NORM; d. Concentrate lantanid or lanthanide concentrate the material Lynas raw mill, before being exported to Malaysia contents analyzed by an accredited laboratory Australia's accredited ISO/IEC17025: 2005 to confirm chemical / radioisotopes; e. Western Australian authorities have given approval for Lynas Corporation Ltd., Australia operating in Meenar 3 A coal dust combustion. 55 55 Industrial Park, Perth when they buy assets from Ashton Rare Earth Pte. Ltd.. in 2003. f. A detailed report in Appendix VI. LAMP ON LOCATION 17.PEMILIHAN Industrial area, PAHANG 17.1. The Committee took note of the location selection Gebeng industry is based on the following factors: i) Economic: a. Gebeng a strategic position near the market region. b. Existing infrastructure is good and class international Kuantan Port, Airport Kuantan, good road network, electricity and water sufficient. c. Availability of local suppliers for chemicals around the area near Gebeng, Kuantan and Kertih. d. Availability of skilled workers at all levels in nearby areas such as Kuantan, Taxes, Kerteh. ii) Land Use Planning: a. Industrial area Phase II and Phase III an area zoned for industrial chemicals and petrochemicals in accordance with Kuantan Local Plan 2004 to 2015 which was gazetted last amendment on 1 April 2008. b. Development Industrial area began of the 1970s, known as Phase I of the site Kuantan-Gebeng By-Pass where there is an industry small and medium such as wood processing industry, factory metal works and concrete ducting. Phase II was developed in 1993 with the approval of the Impact Assessment Report Environmental (EIA) was achieved in March 1993 that place the petrochemical industry such as Petronas MTBE-Polypropylene, BP Chemicals, WR Grace, Eastman, Kaneka and Cryovac. The development of Phase III is in 1998 with the approval EIAnya in December 1998 which houses the petrochemical and chemical industry as Polyplastics Asia Pacific, BASF-Petronas, Petronas CUF and so. 56 56 c. LAMP project located in Phase III development is compatible with the surrounding industries chemicals and petrochemicals. iii) Environment: a. Location LAMP has a sufficient buffer zone from plant boundary with the nearest settlement Parks and Gardens Balok Makmur Balok Prime of more than 2.5 km radius (radii). (Note: The distance the buffer zone for the chemical and petrochemical industries is at least 500 meters as stated in the Guidelines for the Ceiling and Zoning of Industries, Department of Environment). b. Lynas plant through the EIA Report, committed to installing effective pollution control equipment and compliance with standards for the prevention, control and monitoring of environmental pollution such as water and air and high security measures for reduce risk. "Impact 8.9 The findings of this report indicate That the predicted environmental impacts arising from the construction and operational Phases of the Advanced Materials Plant cans be effectively mitigated and reduced to meet regulatory limits with the Implementation award of appropriate mitigation Measures. The findings also rates show That there are no harmful or detrimental impacts can not be mitigated Selatan or, are unavoidable. The recommended mitigation Measures include technologically sound environmental practices and best That management practices will minimise the Potential impacts to sustainable levels. To Ensure the effectiveness of the mitigation Measures, an Environmental Management Selatan Plan includes requirements for Periodical environmental monitoring and audits for the construction and operational Phases of the project will be Developed and implemented. This is to Ensure That all of Recommendations this EIA and the requirements of the relevant government agencies are Executed by Lynas. 57 57 The Project Proponent is Committed to operating the plant in an environmentally sustainable manner, in compliance with all prevailing environmental regulations. [Preliminary ENVIRONMENTAL IMPACT Quantitative Assessment AND RISK Assessment, PROPOSED ADVANCED MATERIALS PLANT, INDUSTRIAL ESTATE Gebeng, KUANTAN Pahang, MALAYSIA VOLUME 1: MAIN REPORT January 2008 page 8-21] " iv) Radiology: a. Lynas plant also through reports RIA, is committed to comply and install pollution control equipment radiology effective and to comply with the standards set for pollution control and monitoring of radioactivity to the environment around. In fact, the Committee took note of the Lynas has put additional environmental monitoring devices around that exceed legal requirements. "In mitigation against the release of Potentially Severe liquid and gaseous Effluents, Lynas will employ all necessary These Technological means to render harmless emissions to the receiving environment, in compliance to the prevailing Those including regulatory requirements enforced by AELB. Details of the non-Radiological pollution control systems proposed for the plant are deliberated in the Environmental Hilman Impact Assessment for the project. Basically it consists of a scrubbing system practically That cans trap and remove all non-radioactive particulates and gases, and a 55 m high stack through the gaseous Effluents Selatan will be Released. The immediate environment around the plant will be Monitored periodically to Ensure That Any release of the Effluents radioactivity will jocko Within the Permissible Limits in accordance to clearance levels as stipulated in the Radioactive Waste Management Regulations [Atomic Energy Licensing Board; Atomic Energy Licensing (Radioactive Waste Management) Regulations 2011 [P.U. (A) 274]]. [LAMP Radiological Impact Assessment, Rev 5, December 2011, page 68] " b. The site also has a background reading data radiology 12 months, this is important in order to achieve the purpose of the concept "Cradle to cradle" when dissolution and nyahcemaran (Decommissioning and decontamination) factory later. Site 5,858 must be restored to its original state based on the legal set. (E) CHANNEL COMMUNICATIONS AND INFORMATION DISSEMINATION 18. PUBLIC ACTIVITIES Engagement 18.1. The Committee noted that the provisions of Section 31 of the Environmental Quality Act 1974 [Act 127] to authorize Environmental Director General for directing a premises for install and operate additional control equipment such as on-line monitoring and hold the display reading during air quality and water quality in front of the premises. 18.2. The Committee recommended to enhance transparency, the LAMP to provide access to the public, the body professional, representative population groups or stakeholders, NGOs for information and data monitoring / on-line monitoring (online) and provide views current readings of air quality and water quality in the presence of LAMP premises. 18.3. The Committee noted that the joint engagement activities Civil society is an important initiative that should be taken seriously and should be held in delivering accurate information and facts on a project to be carried out. 18.4. The Committee recommended the activities of public involvement enhanced as recommended by the IAEA for the dissemination of information as follows: a. Developing and providing public participation about the safety of radiation more easily understood and steps in the licensing process and the process of making results; b. Inform and involve stakeholders and the LAMP incurred in connection with the regulatory requirements and program for review, inspection and enforcement; c. Routinely provide all relevant information LAMP safety and ensure that the 59 59 public know how to get access to information This, and d. Lynas as being responsible for the LAMP security should be prompted to upgrade communication with stakeholders to shows how companies ensure security radiological and environmental. 18.5. The Committee noted the joint engagement activities various community groups were held in the channel information about the project LAMP by agencies such as MITI, MOSTI, AELB, DOE, MPK, DOSH and MOH. Lynas also received visits the public to the project site to explain the truth about project and the technology used to ensure the safety and public health and the environment. 18.6. The Committee recommends that the MITI / MIDA consider the need to impose conditions on public engagement companies for projects involving radioactive materials subject the RIA requirements from the early stages of AELB. 60 61 61 PART VII VIEWS AND RECOMMENDATIONS OF THE COMMITTEE After taking into account the terms of reference, information, opinions of the individuals / associations / organizations, in public hearings, the views of experts relevant, including the Visit and based on observation and study found that LAMP project is a chemical factory producing rare earth and non-nuclear plants or mining. The Committee found that up to now all the aspects of security, health and the environment in connection with LAMP projects and processes, and implementation of licensing and approval procedures based on the allocation laws and safety standards in force have been fulfilled. Committee making recommendations for improvement as follows: (A) SAFETY AND HEALTH IMPACT AND MONITORING PROJECT LAMP Safety Aspects of Radiation Exposure (Radiation Exposure) The level of radiation exposure is a major concern by the public. The Committee noted that through the study, the average dose radiation LAMP project is 2 mSv per year for workers (annual dose limit allowed is 20 mSv per year) and 0.002 mSv per year for the public (annual dose limit allowed is 1 mSv per year) and this showed that the rate of LAMP project is low and safe. 1. The Committee recommends that constant monitoring level radiation (radiation level) conducted by AELB and Lynas in periodically under Act 304 and the regulations thereunder such as the Radiation Protection Regulations (Licensing) 1986, Radiation Protection Regulations (Transport) 1989, Rules of the Atomic Energy (Radiation Protection Basic Safety) 2010, Energy Licensing Regulations Atomic (Radioactive Waste Management) 2011 and regulations other matters connected therewith. 2. The Committee recommended that the RIA updated at each licensing stage and from time to time according to the recommendations Report of the International Atomic Energy Agency (IAEA). 62 62 3. The Committee recommended that the legal requirements regarding the transportation of radioactive materials aligned with latest international standards at a time thought fit to dispel fears of the public about the dangers of radioactive. 4. The Committee recommends that the facts on the different levels of radiation dose and lower LAMP ARE regulated compared with information to the public widely. Environmental aspects Balok River pollution, heavy metal pollution, water pollution, soil and air pollution are some of the issues of concern the public. DEIA preparation issues raised also by some of the parties particular. The Committee noted that the study was conducted and the PEIA approved in 2008 for the LAMP project. At that time DEIA not required in the EIA procedure. EIA study found no significant impact on air quality, water quality and ground water around the LAMP including the nearest population. However, the steps effective control should be taken to reduce pollution and negative effects on the environment. 5. The Committee recommends that enhanced monitoring by DOE under the Environmental Quality Act 1974 [Act 127] and regulations thereunder as Quality Regulations Environmental Quality (Clean Air) 1978, Quality Regulations Environmental Quality (Industrial Effluent) Regulations 2009, Regulations Environmental Quality (Sewage) 2009 and Regulations Environmental Quality (Scheduled Wastes) Regulations 2005. 6. The Committee recommended baseline data environment and environmental monitoring that are observed by the DOE and Lynas posted on the website every three months. 7. Committee recommends environmental audits conducted by third-party registered with the DOE to check the status LAMP compliance of the Environmental Quality Act 1974 [Act 127] and the regulations thereunder, at the operational level LAMP every six months. 63 63 Public Health Aspects The level of radiation exposure can cause the number of cancer cases and increased leukemia are the main concern of the public. The Committee noted that based on scientific fact, LAMP have health risks far lower than the activity mining, ARE, thorium processing plants and nuclear plants. 8. The Committee recommended health baseline study started immediately cover topics such as the number of cases of leukemia, cancer, congenital malformation, asthma and Upper Respiratory Tract Infection were (URTI), led by the Ministry of Health. The study may be published as public documents. 9. The Committee recommended HIA study conducted simultaneously with RIA studies at the next level. 10. Committee recommends further study of cancer incidence and leukemia in Bukit Merah run led by MOH in collaboration with AELB. 11. The Committee recommended for the purpose of continuous monitoring, a series of cohort studies (the study follow-up for long a certain period of time) led by the MOH to cases related diseases around the theater should be carried out and certain amounts to be made available for this study. Residue Management Aspects Residue management consists of a number of issues such as the risks and hazards radiation, storage at RSF, re-use of the residue (reuse and recycle), PDF and repatriation of the residue to the original source (return back to source of origin) is an issue of concern to the public. The Committee noted that the LAMP has submitted proposals and measures that meet the requirements of legislation, safety standards and procedures of the residue in national and international levels. 12. The Committee recommends that the Lynas to submit results research recycling, waste reduction (waste minimization), the use and commercialization of the residue 6,464 produced by LAMP within 10 months after the TOL removed. 13. The Committee recommended use of all residues (Recycle) shall be monitored by the AELB and materials produced must be below 1 Bq / g, although there countries such as the UK allows level 5 Bq / g. 14. The Committee recommends that the Lynas to submit PDF locations to plan and AELB approval within and shall not exceed 10 months from the date of issue of TOL. 15. The Committee recommends that the Lynas to submit PDF DEIA if construction continues for DOE approval the discovery of Radiological Impact Assessment (RIA) before any PDF related license applications submitted to the AELB. 16. The Committee recommended if recycling research and the location can not be identified or approved, Lynas shall carry residue produced by LAMP out of Malaysia. In this regard the Committee noted that the Lynas Corporation Ltd., Australia and Lynas Malaysia Sdn. Limited. had submitted their letters dated 23 February 2012 and 6 March 2012 a record commitment to LAMP carry out residue from Malaysia. [Refer to Appendix IV] 17.Jawatankuasa recommend AELB impose appropriate to LAMP to take additional measures to ensure RSF overall protection so that dust does not fly to independently or air leakage into the ground. The Committee noted that all residues will always be kept in a 25% - 40% humidity. 18.Jawatankuasa recommend the LAMP publicize the the public about effective control measures that implemented to ensure the operation and functioning of RSF safe. 65 65 (B) APPROVAL PROCESS AND LICENSING Doubts of the public for issuing licenses to LAMP for allows it to operate into the dispute, while the conditions are complied with fully unmet. The Committee noted that all the issuance of licenses issued to LAMP is in order and meet legal requirements but also has additional needs procedures for the issuance of licenses issued by all relevant parties. 19. The Committee recommends that the Premises Licence only issued by SLM after Lynas meets all the approval and issuance of a license from the AELB. (C) STRENGTHENING ENFORCEMENT AGENCY FOR PROJECT LAMP Perception by the public on the effectiveness of enforcement in LAMP project. The Committee noted the IAEA to the AELB recognition as enforcement agencies in LAMP projects including agency involvement other authorities from the beginning till the operation of LAMP. 20. The Committee recommended based on the load and AELB additional scope that is extensive, structural staffing and financial provisions should be strengthened further AELB in particular. 21. The Committee also recommends that other enforcement agencies LAMP project specifically regulating DOE, MPK and DOSH also be equipped with the above recommendations. 22. The Committee recommended that the establishment of branch offices DOE and AELB respectively located in an industrial area Gebeng hastened to meet regulatory requirements and monitoring more responsive. 23. The Committee recommended a Coordinating Committee Established for LAMP Enforcement chaired by Local Authority and comprises of MPK AELB, DOE, DOSH and MOH. 6,666 (D) INVESTMENT AND SOCIO-ECONOMIC Perception that there is no economic benefit to the country to be given incentives for 12 years. The Committee noted the economic benefits derived of the LAMP project total investment of RM2.5 billion, creation of employment opportunities, technology transfer, use of utilities, attract new investment in the downstream sector of high technology and spin-off to local upstream industry support. LAMP selection in Malaysia is based on commercial considerations and investment policy Malaysia. Project Lynas will spend about 1 percent of total sales rough year for research and development activities. 24. The Committee recommends that 1 percent of spending on R & D of the gross sales of each year as required, 50 percent of them to carry out R & D activities are supervised by a committee will be formed while 50 percent further R & D activities are supervised by the AELB residue management. 25. The Committee recommends that all R & D activities associated with rare earths conducted in Malaysia. 26. The Committee recommended the involvement of local operators to venture into the downstream high-tech industry using rare earth products. 27. The Committee recommended the promotion of R & D activities in Centers of local universities with technology rare earth and related residue management. 28. The Committee recommended when there is a local industry using the LAMP project products as raw materials exist in the country, appropriate measures such as introduce export taxes implemented. This ensures the supply of raw materials for local industries is sufficient. 67 67 (E) CHANNEL COMMUNICATIONS AND INFORMATION DISSEMINATION Less information and explanation to the public about LAMP project proposal. The Committee noted that public engagement activities have been conducted by the LAMP. The Committee noted the joint engagement activities various community groups were held in channeling information the LAMP project by the Government agencies concerned. Lynas also received visits from the public to the site to provide factual description of the project and the technology used for ensure the safety and health of the public and the environment. 29. The Committee recommended to enhance transparency, the LAMP to provide access to the public, the body professional, representative population groups or stakeholders, NGOs for information and data monitoring / on-line monitoring (online) and provide views current readings of air quality and water quality in the presence of LAMP premises. 30. The Committee recommended the involvement of activities enhanced public as recommended by the IAEA for the dissemination information as follows: a. Developing and providing public participation about the safety of radiation more easily understood and steps in the licensing process and the process of making results; b. Inform and involve stakeholders and the LAMP incurred in connection with the regulatory requirements and program for review, inspection and enforcement; c. Routinely provide all relevant information LAMP safety and ensure that the public know how to get access to information This, and d. Lynas as being responsible for the LAMP security should be prompted to upgrade communication with stakeholders to 6,868 shows how companies ensure security radiological and environmental. 31. The Committee recommends that the MITI / MIDA consider the need to impose conditions on public engagement companies for projects involving radioactive materials subject the RIA requirements from the early stages of AELB. 69 69 PART VIII SUMMARY OF COMMITTEE 1. Committee is satisfied that based on scientific facts, the definition of the law and the information obtained from experts, LAMP project is a chemical factory produce rare earth rather than a nuclear plant or activity mining. The Committee also found LAMP project will use of advanced technologies. 2. Committee is satisfied that the project has met the LAMP standards and legal requirements in Malaysia that is equivalent to international practices and standards. In fact, there are provisions laws and standards imposed on LAMP project is more stringent than international standards. 3. The Committee is satisfied that the LAMP project has provided control system is required as set out in national legislation and international standards to ensure public health and safety and environmental protection for plant operating while. 4. The Committee recommended that the license Class A (Manufacturing - Level Handling meantime) or (Temporary Operating Licence - TOL) removed so that the project could LAMP manufacture raw materials lantanid concentrations gradually and limited and regulated continuously by law enforcement agencies. At this stage, the LAMP must comply with all license conditions prevailing and additional conditions have been imposed in this TOL license. The data obtained in this stage will be the basis of consideration of further licensing process. 5. The Committee recommended a monitoring committee (Monitoring committee) was established to monitor continuously LAMP operation. The Committee shall be composed of relevant agencies and the involvement of non-governmental bodies (NGOs) and health professional. 6. The Committee recommends that all 31 recommendations have presented are implemented accordingly. 70 71 71 PART IX APPRECIATION 1. Committee to express our appreciation to all the The participants include individuals, associations, political parties and organizations for their cooperation with the show in before the Committee to give evidence and produce memorandum and recommendations related to the Project Lynas Advanced Materials Plant (LAMP). 2. Many thanks go out to all parties involved in provision of facilities and transportation, particularly to Office of the State Secretary of Pahang, Universiti Malaysia Pahang (UMP) and Royal Malaysia Police (RMP) for their assistance to Committee during a public hearing sessions and visits job. 3. Appreciation to the members of the House Select Committee People About Project Lynas Advanced Materials Plant (LAMP) and to all ministries / agencies / departments either at the federal or state and especially to the agency holding the helm, namely: a. Ministry of Science, Technology and Innovation (MOSTI) b. Department of Atomic Energy Licensing Board (AELB) c. Ministry of Natural Resources and Environment (NRE) d. Department of Environment (DOE) e. Ministry of International Trade and Industry (MITI) f. Malaysian Investment Development Authority (MIDA) g. Ministry of Human Resources (MHR) h. Department of Occupational Safety and Health (DOSH) i. Ministry of Health Malaysia (MOH) j. Ministry of Housing and Local Government (ministry) k. Local Government Department (LGD) l. Kuantan Municipal Council (MPK) m. Ministry of Finance (MOF) n. Valuation and Property Services Department (JPPH) o. Ministry of Education (MOE) and p. Parliament of Malaysia contributions devoted to perfecting the functions and role of the Committee in accordance with the terms of reference in accordance with purpose of its establishment. The Committee thanked the Honourable Members of the Parliament of Malaysia for the trust to the members of Parliamentary Select Committee on Project Lynas Advanced Materials Plant (LAMP), which took part in the debate on Motion and contribute in any form for the success of the work of this in the project Project Lynas Advanced Materials Plant (LAMP) is. 72 73 73 From the left: (I) elect Datuk Hamzah Roosme bt [Secretary and Secretary of the House of Representatives] (Ii) YB Dato 'Zulkifli Noordin bin (Member of the Kulim New Town) (Iii) YB Dato 'Haji Abdul Rahman bin Haji Ahmad Dahlan (Member for Belud Area) (Iv) YB Dato 'Seri Mohamed Khaled Nordin (Minister for Higher Education) [Chairman] (V) The Honourable Mr. Teng Boon Soon (Member of Tebrau area) (Vi) Mr YB Liang Teck Meng (Member of the junction area Renggam) (Vii) The Honourable Mrs. Hj Hajah Nancy Shukri (Member of Batang Sadong Area) 74
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