Australian rare earths miner Lynas Corp. welcomed the creation of a Malaysian parliamentary select committee (PSC) to intervene on itsbeleaguered Lynas Advanced Materials Plant (LAMP) facility, saying it is confident the committee will not be used as mileage to further harass the existence of its yet to be operational plant in Gebeng, Kuantan.

However, Malaysian political opponents led by Kuantan MP Fuziah Salleh and another pressure group, Himpunan Hijau 2.0, dismissed the committee was just a lip service strategy, "a public relations exercise" by the government.

"It's nothing more than a cover up. On one hand, they are saying they are concerned but on the other, they are dismissing the people by not listening to what they want." Salleh said in The Sun Daily.

"The people in Kuantan and those living around the plant do not want it there, or anywhere else in Malaysia, for the matter."

The presence of the parliamentary committee, according to Wong Tack, chairman of Himpunan Hijau 2.0, "will only drag the whole issue until after the next general election."

The parliamentary committee, which was proposed by Malaysian Prime Minister Datuk Seri Najib Razak on Saturday, has been primarily tasked to help raise awareness concerning the project, its' supposed radiation effects as well as contributions to the country's economic growth, Lynas Corp. said in a statement. It will not have any power to decide on approvals and plant operations.

"On the Lynas issue, we feel there are still certain things that we need to fulfil, that is, the engagement process, so that we can convince the groups who are still suspicious whether the project is safe or otherwise," The Sun Daily quoted PM Najib as saying.

The committee will be chaired by the country's Higher Education Minister Datuk Seri Khaled Nordin, along with four Barisan Nasional (BN) MPs, three opposition MPs and one independent lawmaker. It isexpected to deliver and report its findings by the end of June.

The Atomic Energy Licensing Board (AELB), meanwhile, hailed the creation of the PSC. "In my opinion, the PSC is being set up to see the reasons behind all the objections, whether they are based on safety concerns, emotions or ignorance," he said in The Sun Daily.

The AELB awarded Lynas Corp. on January a temporary operating license for the LAMP. However, it had faced strong violent reactions from Malaysian locals opposed to the plant's existence on claims of possible radiation hazards.

Lynas Corp. targets to conduct first production in the second quarter of this year.

In the first half of its 2012 financial year, Lynas Corp. had booked a net loss of $38.5 million.

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