Strike one for Lynas opponents.

Australian rare earths miner Lynas Corp., whose Lynas Advanced Materials Plant (LAMP) facility in Malaysia is almost complete but still unoperational, has scored a win against the locals who contested the authenticity of the rare earths temporary operating licence (TOL) issued by the country's Atomic Energy Licensing Board (AELB) in early February.

In a statement on Thursday, Lynas Corp. said the High Court of Malaysia concluded it was not appropriate for it to intervene in the matter, especially since an appeal lodged with Malaysia's Innovation, Science and Technology Minister Maximus Ongkili was also already in progress.

The court also pointed out the AELB has jurisdiction to issue a TOL over the plant because radioactive materials are naturally present in rare earths, and this is its forte.

But despite the favourable court ruling, the ill-advised controversy and misinformation spurred by a concerted political campaign and an environmental activist campaign are damaging not only the rare earths plant but Malaysia's international investment reputation as well.

"This concerted political campaign, which is based on misinformation, is sabotaging the science-based, regulatory process established in Malaysia and confidence in that process," Nicholas Curtis, Lynas executive chairman, said.

"The Malaysian government must be able to provide certainty to Malaysian and international businesses that they will not be frustrated by a campaign of delay once those companies have completed the predefined and rigorous Malaysian government regulatory approvals process," he added.

The Malaysian government, pushed by the strong local opposition to the LAMP, has initiated in March the creation of a commission to review the rare earths TOL.

"A country's strict regulatory standards and investment reputation can be quickly undermined by an environmental activist campaign designed to stifle and frustrate investment by lodging vexatious legal challenges and appeals," Curtis said.

Shares of Lynas Corp. jumped 2.5 per cent, or 2.5 cents, to $1.03.

The LAMP facility had been compared to the Bukit Merah rare earths refinery in Malaysia once operated by Japan's Mitsubishi.

But Curtis downplayed such accusations.

"Bukit Merah would not gain approval under either international or Malaysian regulatory standards today, in contrast to the LAMP which complies with both."

"The Bukit Merah feedstock had radiation levels 30 times higher than the LAMP feedstock and the residue at Bukit Merah was 100 times the radiation levels of the LAMP by-product," Mr Curtis said.

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