malaysia to sign fta agreement with aus on tue

It seems Lynas Corp. and its embattled rare earths processing plant in Malaysia could be included in a list of hot topics for discussion in what could be a most opportune timing as Malaysia signs a free trade agreement (FTA) with Australia on Tuesday.


Manufacturing Court Australia Investment Dr Craig Emerson, Australian Minister for Trade and Competitiveness, is scheduled to fly to Malaysia next week to sign the agreement with Datuk Seri Mustapa Mohamed, Malaysian Minister of International Trade and Inndustry (MIIT), the Bernama reported, citing an advisory from MIIT.

The two countries started negotiating for the Malaysia-Australia FTA (MAFTA) in 2005, but had to withdraw to focus on the Asean-Australia-New Zealand FTA which started in 2006. Talks for MAFTA resumed in 2009 and successfully concluded in March this year. It covers agreements on trade, services, investments and economic cooperation which the report did not specify in detail.

Although the Australian government has not been actively involved in the squabble that Lynas Corp. got into in Malaysia on account of its Lynas Advanced Materials Plant (LAMP) rare earths facility, circumstances could lead to a probable discussion, moreso that Mr Mustapa himself, just this week, defended the presence and importance of the plant and its contribution to Malaysian economic growth.

The rare earths facility is already 98 per cent complete but still not operational, pending the release of the temporary operating licence (TOL) issued by the country's Atomic Energy Licensing Board (AELB) in early February. The issuance of the TOL got sidetracked and delayed as opponents to the plant filed complaints before Malaysian authorities, calling for the revocation of the license.

Mr Mustapa said the presence of Lynas Corp. and its investment into Malaysia through the LAMP could pave the way for potentially more jobs and bigger economic growth for the country as it would lead to off-shoot undertakings in the area of technology and research and development.

Since 2011, the rare earths processing plant has faced violent protests from local residents and opposing political wannabes, claiming the plant will give off radiation pollution. Lynas Corp. had insisted it has met and exceeded local and international safety standards, the reasons the AELB granted the TOL.

It had also said whatever residue incurred by the plant will be reprocessed into safe commercial products.

The Australian rare earths miner said the LAMP is ready to go online three weeks within receipt of the TOL

http://au.ibtimes.com/articles/342514/20120518/rare-earths-malaysia-lynas-corp-manufacturing.htm