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    ADHERING TO IAEA RECOMMENDATIONS WILL MAKE LYNAS RARE EARTH PLANT SAFE - REPORT

    KUALA LUMPUR, Dec 20 (Bernama) -- Lynas Corporation Ltd''s rare earth plant

    in Gebeng, Pahang, will be safe and harmless if the company follows the

    recommendations of the International Atomic Energy Agency (IAEA) on the project,

    according to two Malaysian professional bodies.

    The Academy of Sciences Malaysia (ASM) and the National Professors'' Council

    (NPC), in a joint report on the project, said the plant must adhere to stringent

    procedures for waste management to ensure worker safety, public safety and

    environmental well-being.

    The 63-page report, issued here today, said the processing of rare earth

    produces some by-products which do carry some low-level radioactive risks, but

    such risks are manageable and there are technologies available to effectively

    render the wastes harmless and safe.

    ASM, an independent science and technology ''think-tank", and NPC, a body of

    more than 1,500 professors from the public and private universities, initiated a

    comprehensive study on rare earth and its potential contribution to the

    Malaysian economy.

    In the report, titled "Rare Earth Industries: Moving Malaysia''s Green

    Economy Forward", they also said that Lynas Corporation would have to ensure

    that there is a health scanning of plant employees as well as people working

    within the immediate vicinity of the plant.

    -- MORE

    LYNAS-REPORT 2 KUALA LUMPUR

    The report said the health scanning is to establish a baseline data on the

    health of the community living and working around the plant premise.

    It also suggested that the "discharge limits for toxic chemicals and heavy

    metals must meet standards stipulated in the Environmental Quality Act 1974

    (and) properly designed permanent storage for low-level radioactive waste must

    be built to isolate gypsum residues if its beneficiation is not viable".

    The plant also needs to construct an interim low-level radioactive waste

    storage within the premise to accommodate waste produced in the first three

    years of operation, it added.

    The two professional bodies said the rare earth industry is expanding,

    especially with the growing demand for green products and the global push to

    embrace the green economy.

    "As a result, investments in rare earth mining and processing have also

    grown. Apart from China, many countries have started to seriously allocate new

    investments in rare earth refining. Some have begun reviving their old rare

    earth mines which were abandoned during times of low pricing," it said.

    -- MORE

    LYNAS-REPORT 3 KUALA LUMPUR

    The report said the Lynas plant in Gebeng will be generating three types of

    residues, namely Water Leach Purification (WLP) residue, Flue Gas

    Desulphurisation (FGD) residue and Neutralisation Underflow (NUF) residue.

    It said the WLP and NUF residues can be considered as raw materials for

    other industry, for example WLP can be used as raw material in making gypsum

    plaster and NUF as fertiliser.

    Storage and handling of the residues can be overcome because WLP residue

    contains mainly calcium sulphate, which is also known as synthetic gypsum, while

    NUF residue is rich in magnesium, the report said.

    Meanwhile, ASM Chief Executive Officer Dr Ahmad Ibrahim told reporters after

    issuing the report that claims that the Lynas plant would emit radiation

    detrimental to public health were not true. He said the risks of the Lynas

    operation were manageable.

    However, the company had failed to engage actively with the community in

    giving a detailed explanation of the project, he said.

    -- MORE

    LYNAS-REPORT 4 (LAST) KUALA LUMPUR

    "The Lynas management should enhance the understanding, transparency and

    visibility of its regulatory actions in the eyes of the public, particularly

    those actions related to inspection and enforcement of the proposed rare earth

    processing facility," he said.

    Dr Ahmad said the actual rare earth business was good for the future as it

    led to the making of materials for the use of science and technology, including

    green technology, and was a good industry for Malaysia towards achieving its

    Vision 2020 of becoming a developed country.

    -- BERNAMA

    KNAA HK MGN

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