The reality of the situation. LYNAS MEDIA RELEASE11 December...

The reality of the situation.

LYNAS MEDIA RELEASE

11 December 2012

Clarification of Malaysian media reports
Lynas Corporation Limited (“Lynas”) (ASX:LYC, OTC:LYSDY) notes the recent comments in the Malaysian media with respect to the Temporary Operating License (TOL) for the Lynas Advanced Materials Plant (LAMP).
Lynas confirms that the TOL remains issued and valid and there is no legal impediment to Lynas carrying out its operations at the LAMP.
The TOL has two key conditions with respect to the solid residues from the LAMP. The key obligations of Lynas are – a) to undertake R&D on the commercialization, recycling and re-use of residue materials subject to a condition that the material re-used must be below 1 Bq/g and,
b) to submit the plans and location of a Permanent Disposal Facility. These conditions are to be satisfied within 10 months of the issuance of the TOL in Sepember 2012. Lynas is confident of satisfying these conditions. Lynas is conducting detailed commercialization activity with respect to the residue to safely commercialize that material and to deal with it in accordance with the TOL. Lynas has constructed a plant at the LAMP which is now ready to convert the WLP residue into co- products for market trials.
In addition, as noted in Lynas’ ASX announcements dated 28 August 2012 and 5 September 2012, and in accordance with the undertakings given to the AELB at the time of receipt of the TOL, Lynas will ensure that all residue material that is the source of concern to the Malaysian public will be converted into co-products, and exported from Malaysia if the co-products are not approved for use in Malaysia and an acceptable location for the Permanent Disposal Facility is not approved. The co-products must be in a form acceptable for international markets and in accordance with all Malaysian regulations and international conventions.
Lynas is fully commited to safety, environmental excellence and the creation of sustainable value for its communities through its operations.

http://www.lynascorp.com/content/upload/files/Residue_update_11122012_v3_1179360.pdf