About MITI

The Lynas Fact Sheet

 
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Note:
This Fact Sheet was last updated on 12 July 2011

Rare Earths
  1. Despite their name, rare earth metals are found in many places in the earth’s crust. But they are relatively difficult to mine and extract because of their chemical properties and geographical dispersion.

  2. Rare earth metals are used in the manufacture of a wide variety of products including mobile phones, TV screen displays, catalytic converters, wind turbines, hybrid car batteries, disk drives and many high technology equipments.

  3. Worldwide demand for rare earths is increasing rapidly and is expected to outstrip supply in the future. China currently produces about 97% of the world’s supply.

 

Rare Earths & Radioactivity
  1. Rare earth minerals are often found in ores which contain small amounts of radioactive elements such as uranium and thorium. So extracting them from these ores raises a number of health and safety issues.

  2. How will it affect the health of workers and members of the public? Is it safe to transport the raw materials? Or the finished products? What will happen to the waste? Where and how will it be stored? Will it affect health or the environment?

  3. All human beings are exposed to very small levels of radioactivity in every day life. Thorium, for example, is naturally present in soil, rocks, ground and surface water, plants and animals – but in very, very low concentrations. If you eat or drink food and water containing this level of radioactivity, your health will not be affected.

  4. How much radioactivity is considered safe? The acceptable radioactive exposure limit for the public is 1 mSv/year. The annual radiation exposure, in millisieverts (mSv)/year, in a number of daily human activities is as follows :

    1. Smoking a pack of cigarettes daily 150.00

    2. Medical or dental x-day 0.39

    3. Sleeping next to someone for 8 hours 0.02

    4. Watching television 2 hours daily 0.01

    5. Using a computer terminal 0.001

(Source: United Nations Environment Protection Agency; US Department of Energy; Health Physics Society; United Nations Scientific committee on the Effects of Atomic Radiation 1993, 1996, 2000)

 

The Lynas Project
  1. Lynas Malaysia Sdn Bhd (Lynas) is a wholly-owned subsidiary of Lynas Corporation Ltd of Australia. Its business is the production and sale of rare earth ores and related by-products.

  2. In Malaysia, Lynas plans to import rare earth ore from its Mount Weld mine in Western Australia, truck it to the port of Fremantle, send it by container ship to Kuantan, and process it at the Gebeng Industrial Estate in Pahang.

  3. At Gebeng, the Lynas plant will extract rare earth minerals from the ore. Most of this will be for export. Lynas says waste (residue) from the refinery will be used to make products which will be made safe and can be sold commercially, or stored in safe and secure containers in specially prepared sites.

  4. Lynas says it chose to locate its plant at the Gebeng site because of:

    1. It is close to Kuantan port

    2. Gas, water and chemical supplies are readily available

    3. Skilled workers are also available

Manufacturing License
  1. On 22 January 2008, Lynas was given a manufacturing licence to produce “rare earth oxides and carbonates” at Gebeng Industrial Estate, Kuantan.

  2. The approval was given subject to a number of conditions, in particular, the need to comply with the safety provisions of the:

    1. i. Atomic Energy Licensing Act 1984

    2. ii. Environmental Quality Act 1974.

 

Compliance Requirements

  1. The Atomic Energy Licensing Act 1984 is administered by the Atomic Energy Licensing Board (AELB). The AELB sets the standards of safety Lynas must meet.

  2. The AELB also monitors the radiological and environmental impact of all phases of the Lynas project: construction, operations, transportation, waste management, dismantling of the plant when its ends operations, and restoring the environment to normal use.

  3. The Department of Environment (DOE) is the implementing agency for the Environmental Quality Act 1974.

  4. The safety standards and good practices imposed on Lynas by these two regulatory bodies are similar or equivalent to internationally recognised standards.

Compliance status
  1. Lynas began planning and construction of its plant at Gebeng Industrial Estate, Pahang soon after obtaining its manufacturing licence. In April 2011, the company announced that construction had reached the 40% stage and was on target for completion by September, 2011.

  2. The AELB and the DOE confirmed that Lynas had complied with all health and safety standards required of the company up to that point in time.

  1. However, many members of the public – including residents, non-governmental committees and professional bodies – expressed concern that the Lynas project was not safe, and was a threat to public health and safety.

  2. On 22 April, 2011, the Government responded to these concerns by announcing the appointment of an independent panel of international experts to review the health and safety aspects of the project and to make recommendations to the Government.

  3. Pending the completion of this review, the Government decided that:

    1. No pre-operating license will be issued to Lynas.

    2. Lynas will not be allowed to import raw materials for the plant from Australia
IAEA Review Mission
  1. On 13 May 2011, the Government announced that the International Atomic Energy Agency (IAEA) in Vienna, Austria, had agreed to appoint an expert team to:

    1. Review Lynas' compliance with International Safety Standards and Good Practices

    2. Provide an independent expert opinion on safety issues, in particular, those relating to radiation safety.

       

  2. The scope of the review covered:
    1. Radiation protection (workplace, public, environment)
    2. Safety assessment
    3. Waste Management
    4. Transportation
    5. Decommissioning
    6. Environmental remediation

       

  3. The IAEA Review Mission consisted of nine members: four from the IAEA, and the rest from Canada, India, the United Kingdom, the Netherlands and South Africa. All are recognised experts in disciplines related to radiological health and safety. (For details of panel members, go to http:/bit.ly/ihqUlr)

     

  4. The panel members visited Malaysia from 29 May to 3 June 2011 on a fact-finding mission. It also received submissions from members of the public, including representatives of residents' associations, community groups, non-governmental organisations, professional bodies and political parties.

     

     

  5. The IAEA Review Mission submitted its Report to the Malaysian Government on 30 June 2011. The Report has been made public.(It can be accessed athttp://www.iaea.org/newscenter/news/pdf/lynas-report2011.pdf , MITI's website ( www.miti.gov.my) and MOSTI's website (www.mosti.gov.my).

     

Main Findings and Recommendations of IAEA Review Mission - Summary
  • International safety standards complied withThe IAEA reported that Lynas has so far met all radiation safety standards imposed on them at the plant by the regulatory authorities (AELB and DOE).

    These standards meet internationally recognised IAEA safety standards.

  • Lynas must submit waste management plan for approval
    The IAEA said Lynas must submit – before the start of operations – a comprehensive waste management plan for AELB's approval. 

    The plan should address the following issues:

    • How waste will be stored or disposed off

    • What will happen when the project ends and the plant is dismantled

    • How the environment will be restored to normal use at the end of the project life
  • AELB should be strengthened 
    The IAEA said the AELB should be strengthened and given more resources – human, financial, technical – to do its job.

Government's Position

  1. The Government has accepted all the Recommendations of the IAEA, and will implement them accordingly.
  1. Lynas must meet all safety conditions recommended by the IAEA. This includes submitting a comprehensive plan on waste management which has to receive AELB's approval before the start of any operations.
  1. Until this is done:
    • No further licensing approval for Lynas will be considered
    • No importation of raw materials by Lynas will be permitted
    • No operational activity will be allowed at the Lynas site.
  1. The AELB will be given additional resources to carry out its duties. This includes undertaking monitoring and enforcement measures to protect public health and safety.
  1. Public safety remains the Government's highest priority and overrides all other considerations.

 


Last Updated 2015-07-28 17:57:45 by Fauziah Osman

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