A proposal on how to address five remaining sets of preconditions is holding up the temporary operating license earlier approved by the Atomic Energy Licensing Board of Malaysia for Australian miner Lynas Corp.

On Feb. 2, the AELB and the Science, Technology and Innovation Ministry (Mosti) granted the highly coveted TOL, effectively directing Lynas Corp. to advance with the controversial $200-million rare earths processing plant in the province of Gebeng, Kuantan. But the said approval came with a number of conditions the Australian miner must address first. Until then, Lynas Corp. cannot import its rare earths raw ore from its Mount Weld mine in Western Australia into the Malaysian plant.

Both the AELB and the Mosti said they have been waiting for such proposal.

Reports circulated last week that Lynas have started importing the raw ore. But the Raja Abdul Aziz Raja Adnan, AELB director-general, had categorically denied this.

"There are talks that Lynas has already imported raw ore, but it is not true. We have not given any permits as the licence had not been issued. And I don't think they are ready yet," he said at AELB headquarters Thursday.

The five remaining sets of pre-conditions that Lynas Corp. needed to address included responsibility, operational control, safety and security, radioactive waste management, and general regulations, www.theSundaily.my reported.

Moreover, Lynas needs to pay a $50-million security deposit, identify a location of a permanent waste repository plus submit a detailed engineering study, within 10 months from Jan. 30.

The proposal will take "a matter of days," Nicholas Curtis, chief executive officer of Lynas Corp, told Bloomberg News.

The rare earths processing plant in Malaysia, according to Lynas Corp.,will become the world's largest refinery of the minerals at 22,000 tonnes capacity per year if a second phase be approved and completed. Once in full operation, the Australian miner may account for 39 per cent of the world's supply outside of China, the world's stronghold of rare earths, which supplies more than 90 per cent of global output.

Until all the conditions are met, the actual issuance of the TOL will remain suspended, Adnan said.

"The TOL has only been approved and not yet issued," Adnan said. "For that to happen, Lynas needs to make payments for the licencing fee and the first installment of US$50 million."

"Even if tomorrow, they can fulfill the conditions, I don't see any problem (in releasing the licence)."

However, the AELB noted the TOL does not cover the actual importation of the raw material from Mount Weld, Australia. Lynas would still have to file and obtain a separate permit for that, www.theSundaily.my reported.

The AELB director-general likewise reiterated during the same briefing that the $200-million rare earths processing plant is safe since Lynas Corp. was able so submit proof that the facility was inspected and certified safe by a registered engineer as required under Malaysian law.

"So under Malaysian law, if it's certified by an engineer registered in Malaysia, it is taken as proof," he told reporters.

"Therefore, if anything else happens, in due process of law, we will take it up with the engineer if there is any incompetence within the report. That's the normal procedure."

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Lynas Obtains Temporary License for Malaysia Rare Earths Plant