A day after revealing on Tuesday that it encountered a $40 million blowout in related construction costs at its controversial LAMP advanced materials refinery plant, Australian miner Lynas Corp. faced yet another hurdle, this time, the 2,000-page feedback it received to the application for a temporary operating licence it lodged before the Malaysian Atomic Energy Licensing Board (AELB).

Concerned individuals and four mother groups including the Malaysian Medical Association (MMA), Pahang Bar Council, Save Malaysia Stop Lynas (SMSL) and Stop Lynas Coalition (SLC) urged Malaysian federal government to reject the plant's pre-operational licence application and wait until Lynas Corp. revise yet again and presents a safer plan on the LAMP advanced materials refinery plant located in Gebeng, Kuantan.

The groups, during a press conference, criticized Lynas Corp's proposed waste management plan as "full of holes and totally unsafe," and further belittled the miner's application for a temporary operating licence as "very weak application."

Lynas Corp., in its 300-page document submitted to the AELB early this month, said it will convert turn its waste into commercial gypsum and fertilizer enhancer.

"If accepted, this plan will result in hazardous and radioactive substances being scattered into residential houses, offices, farms and plantations," Tan Bun Teet, SMSL chairman, said.

"The use of phospho-gypsum plaster-board and plaster cement in buildings as a substitute for natural gypsum may constitute an additional source of radiation exposure to both workers and members of the public," the 2,000-page document said, quoting information from Internet-based environmental organization Zero Waste America.

"The American Gypsum Association does not accept gypsum made with contaminated materials. Contaminated gypsum in the USA has resulted in a class action against the supplier and the importers," the groups added.

"The Government must enforce its own law to make sure Lynas carries out a detailed environmental impact assessment," Andansura Rabu, SLC chairman said, noting the proposed plant would result in hazardous and radioactive substances being scattered into the air.

Hon Kai Ping, Pahang Bar Council chairman, meanwhile pointed out that the location of the residue storage facility built within the plant was unsuitable, and that the location of the permanent depository facility (PDF) continues to be unidentified.

But Lynas Corp. said a PDF for radioactive waste from the LAMP advanced materials refinery plant will only be needed in a "worst-case scenario" should it be unable to reprocess its waste into commercial products.

"The land is reclaimed swamp land and is just few kilometres away from the sea," he said.

Local residents and environmentalists criticized Lynas Corp. does not have a long-term waste management plan and that it will only store radioactive waste onsite, situated 2km from the nearest residential area.

They also pointed out the possible threat the LAMP advanced materials refinery plant could give to the towns and villages found along the coast from Kuantan to Kemaman, home to traditional fishing communities.

"Contaminated water from the Lynas plant will be discharged into the Balok River which drains into the South China Sea risking serious pollution of these important fishing grounds and tourism hotspots," Rabu said.

Lynas Corp. had earlier argued that refining the rare earth ore from Mount Weld, West Australia will result in three forms of residue, of which two possess a radiation level of below 1 Becquerel per gramme (Bq/g), considered non-radioactive and outside of regulatory control by both international and local authorities.

It proposed to recycle the two wastes into synthetic gypsum and fertilizer through a still unidentified process.

Lynas Corp. expects a decision on the fate of its application for a temporary operating licence when the AELB board meets this coming Monday. Should it get an approval, a full licence maybe granted within two years if the plant meets safety requirements listed in its application.

The protesting groups said they have since raised funds in preparation for a legal debacle should the federal government allow Lynas Corp. to operate despite its unsafe waste management strategy.

The Mount Weld Rare Earth Project near Leonora in WA is one of Lynas Corp.'s asset base. The other is the LAMP plant in Malaysia. Under Phase 1, combined output from the two projects is expected to reach 11,000 tonnes of rare earth metals annually. Lynas Corp. expects first production output late 2012. Production is likewise expected to double with the completion of Phase 2 expansions by the end of 2012.

Mount Weld is already operational, with buyers already lined-up to purchase its yield. The final stumbling stock that remains is Malaysia's approval on the LAMP plant. Once approval is secured, Lynas Corp. is touted to become one of the world's biggest rare earths producers that could possibly give China a run for its money and rare earths produce, a group of 17 elements essential to make high-tech electronics, magnets and batteries as well as renewable energy products like hybrid cars.