Australian rare earths miner Lynas Corp. and its embattled processing plant in Malaysia continue to get caught in a nasty tug-of-war between the country's locals and its government which very much approves its presence.

In a report by theSundaily.my over the weekend, Datuk Seri Mustapa Mohamed, Malaysia's minister for International Trade and Industry Ministry, said the investment of the rare earths producer, along with its Lynas Advanced Materials Plant (LAMP), paves the way for potentially more jobs and bigger economic growth for the country as it would lead to off-shoot undertakings in the area of technology and research and development.

"Whenever the government does something, it does due diligence in analysing the benefits to the country. Lynas is the first step. We are looking at spin-off activities and downstream development such as wind turbines, batteries, and hybrid cars," theSundaily.my quoted Mustapa as saying over the weekend.

The Lynas rare earths plant has been likened to a sacrificial lamb.

"Everything has to start somewhere," said Mr Mustapa, who issued his statement in response to an earlier evaluation of Dr Meor Yusoff Meor Sulaiman, Malaysian Nuclear Agency senior research officer, who said the Lynas Corp. rare earths processing plant no longer stands to benefit Malaysia economically given the controversy it has received.

"We cannot jump straight to the highest mountain. Take the electrical and electronics industry for example. We started with assembly plants 30 years ago, and were met with resistance then but look at Penang now - it is Malaysia's Sillicon Valley. We've built our own factories, which in turn spawned smaller enterprises in machining, or tool and die," he said.

Lynas Corp. and its LAMP facility, already 98 per cent constructed under phase one construction, had been under fire since February 2012 when the Atomic Energy Licensing Board (AELB) of Malaysia approved the two-year temporary operating licence (TOL) needed to officially ignite the plant's operation in Kuantan.

But Lynas Corp. has yet to receive the TOL as it has since been challenged by protests groups, environmentalists as well as Malaysian political wannabes, citing radiation and environmental hazards. The facility, already delayed by eight months, would supply about 11,000 tonnes of rare earths in its first year, eventually rising to 22,000 tonnes.

"Some people have made up their minds on the matter, even though we've brought in experts. I appeal to everyone to be objective and not follow the herd mentality," the minister added.

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