KUALA LUMPUR - Environmentalists on Wednesday criticised Malaysia for extending the operating licence of an Australian mining firm, allowing it to import rare earth metals containing radioactive material until March 2026.

Rare earths are a crucial component used in products including mobile phones, hybrid cars and flat-screen television sets, but there are only a few producers outside of China.

Ms Mageswari Sangaralingam of non-governmental organisation Friends of the Earth Malaysia expressed shock at the government’s U-turn to allow Lynas Rare Earths to proceed with the cracking and leaching activity, which produces radioactive waste.

“We are indeed outraged over the government’s reversal of the decision,” she said. “After 10 years with Lynas’ full commercial production, we have been landed with a massive environmental problem.”

Previously, Lynas was allowed to import and process lanthanide concentrate, which contains radioactive material, only until January 2024.

Science and Technology Minister Chang Lih Kang announced on Tuesday that the extension would allow Lynas to process rare earths on the condition that it conducts “thorium extraction” to remove radioactive waste.

The Lynas site, located near the city of Kuantan in central Pahang state, began operations in 2012.

The government said Lynas has produced over a billion kilograms of radioactive waste since that year, and the waste is being stored near the plant.

Mr Chang said Lynas must commit 1 per cent of its gross revenue, up from 0.5 per cent, to research and development including the removal of radioactive material from residues.

Lynas chief executive and managing director Amanda Lacaze said on Tuesday that Malaysia’s decision would provide a strong foundation to develop the local rare earths industry.

“As the leading producer of rare earths outside of China, Malaysia plays an important role in the global rare earths supply chain,” she said. AFP