I would say Lynas is not willing to risk another hit to...

I would say Lynas is not willing to risk another hit to production rather than 'has zero confidence this issue will be rectified any time soon'. This is wise but it remains a pity Lynas shareholders bear the burden of warning investors to build anywhere other than Malaysia. Malaysian authorities are more concerned with their petty political positions than their ability to provide for her people.
IMO, it's past time for Lynas to put Condisoil on the market, that will end the naysayer's ability to make noise about radioactivity.