KUANTAN: After a roller coaster ride for the past 10 years, Lynas Malaysia can look forward to promising times as the rare earth plant now has a clear pathway to continue operations with full backing from the government.

Lynas Corporation Ltd (Lynas) managing director and chief executive officer Amanda Lacaze said the company's future looks more assured in Malaysia after it has managed to overcome some of the political challenges faced in the past.

"We are looking at the future with great enthusiasm. I think the government under the leadership of Prime Minister Anwar (Datuk Seri Anwar Ibrahim) truly understands the importance of rare earth in the 21st century.... in electric vehicles, wind turbines and new energy fuels.

"There is opportunity in Malaysia to develop upstream resources and also towards developing downstream capabilities...this government is very focused on doing both because it will contribute to the economic wellbeing of all Malaysians and Lynas is a key part of that.

"Lynas is quite confident that we have a very 'rosy' future in Malaysia," she told reporters after opening Lynas Malaysia's 10 years of partnering with Malaysian businesses at its Vendor Appreciation Day 2024 at a hotel here today.

Meanwhile, Lacaze said since setting foot in Malaysia some 10 years ago, Lynas has had a new challenge every year and none of them have been small.

"In the early stages, Lynas became a little of a political football (in Malaysia) facing challenges during different times of the political cycle. Finally, last year, we got a resolution to many matters that have been uncertain for quite some time.

"I have met Prime Minister Anwar twice in the last nine months and there has been positive progress as the government now understands that this (rare earth) is not about politics but economic development. Rare earths as an industry offers many opportunities in Malaysia's economic development.

"Malaysia is ahead of the game because Lynas is here and we are the only significant producer of separated rare earth outside of China which gives Malaysia a much bigger voice on the world stage.

"We now have a clear pathway forward with the government's support and have great confidence to invest in Malaysia," she said.

Over the years, several non-governmental organisations have questioned the government's decision to allow the Australian rare earth company to operate here, voicing their concerns over the company's radioactive waste.

Last year, Science, Technology, and Innovation Minister Chang Lih Kang said Lynas is allowed to operate with the newly allowed terms until March 2026.

On the Lynas Advanced Materials Plant (Lamp) in Gebeng, Lacaze said Lynas has invested RM500 million to expand the facilities and works will be completed by the end of next year.

"Upon completion, it will help increase our capacity, heavy rare earth separation, execute several enhancements to the existing plant, improve safety and operate efficiently," she said, adding Lynas Malaysia employs over 850 people with 98 per cent are locals.

Lacaze said over 80 per cent of Lynas Malaysia's suppliers are based in the country and the Vendors Appreciation Day event demonstrated the company's commitment to invest in the Malaysian economy, and the skills of its local communities.

https://www.nst.com.my/news/nation/2024/07/1081468/lynas-upbeat-over-future-says-pm-understands-rare-earth-importance