Lynas withdraws legal bid over licence conditions

November 14, 2023

Lynas withdraws legal bid over licence conditions

KUALA LUMPUR: Lynas Malaysia Sdn Bhd has officially withdrawn its application for a judicial review of the government’s decision to impose several conditions in its operating licence.

Lawyer Cecil Abraham informed Justice Wan Ahmad Farid Wan Salleh that the rare earths producer and the government had agreed to the terms under a proposed consent order.

The High Court recorded the withdrawal and made no order as to costs.

Last week, Lynas Malaysia indicated that it would be withdrawing its legal challenge after the science, technology and innovation ministry renewed its operating licence until March 2026.

The renewal, made last month, will allow Lynas to continue importing and processing rare earths for a two-year period.

In August, the court granted Lynas leave to pursue a judicial review of the government’s decision to impose several conditions in its operating licence.

The Australian rare earths producer had sought to challenge conditions prohibiting the import and processing of lanthanide concentrate from Jan 1, 2024.

Minister Chang Lih Kang had rejected Lynas’s appeal for four licensing conditions, set by the Atomic Energy Licensing Board in March 2020, to be dropped following a hearing on April 28.

Cracking and leaching operations at the plant in Gebeng, Pahang, were supposed to have ceased after July 1, but Chang said Lynas was granted a six-month extension until Dec 31 to prevent disruptions to the global rare earths supply chain.