Lynas claims resin provider switch is a ‘business decision’
-themalaysiainsider.com-
KUALA LUMPUR, Feb 3 — Australian miner Lynas Corp has denied reports that a key contractor at its rare earth refinery project in Gebeng, Kuantan withdrew over safety concerns, saying it changed suppliers for the RM2.5 billion venture.
The company has received a pre-operating licence although nearby residents have raised concerns about the project.
“Any claim that AkzoNobel withdrew their resin supply on the grounds of substandard engineering is false,” a spokesman for the Australian miner told The Malaysian Insider.
The New York Times reported on Tuesday that the Dutch chemical company pulled out from the project in the third quarter of last year after it was informed that the fibreglass liners using its resin would be installed in concrete-walled tanks that did not meet safety standards.
AkzoNobel is said to have refused to supply resins as the tanks — which will be used to mix hundreds of tonnes of rare earths with extremely corrosive acids — have problems with rising dampness in the floors and cracks in the walls.
But Lynas said it made a “business decision” to seek another supplier for the lining for its concrete leaching tanks as AkzoNobel only manufactured the resin but did not apply it or certify the work.
The miner pointed out that AkzoNobel’s replacement, Trepax Thailand, appointed last year, has over 20 years’ experience in the petrochemicals industry across Asia and provided integrated services, including certification.
“The new contractor is applying a vinylester resin to meet international industry standard Derakane 411 from the worldwide leader in vinylester resins (Dow Chemicals),” Lynas said.
The Atomic Energy Licensing Board (AELB) granted a temporary operating licence (TOL) to Lynas last Friday after almost a year of sustained public protests.
The regulator said it decided on Monday to approve the Australian mining giant’s application despite receiving 1,123 comments on Lynas’ documents during the public feedback period, which ended last Thursday.
AELB’s decision will finally allow Lynas to fire up its controversial refinery, which has raised fears of radiation pollution among residents of the east coast city and environmentalists.
The plant will be monitored for the next two years during which Lynas must meet safety requirements before AELB issues a full licence to ramp up operations.
Lynas said last week it expects the start of operations to be delayed to the second quarter from the first quarter of this year.
Plans to start operations in September last year were scuppered when Putrajaya bowed to public pressure last April and put the project on ice pending a review by the International Atomic Energy Agency (IAEA).
In July last year, the AELB adopted 11 recommendations set out by the review of the refinery and said it would not allow Lynas to begin operations or import rare earth ore until all conditions, which include a comprehensive, long-term and detailed plan for managing radioactive waste, were met.
Lynas Corp failed to meet any of the conditions in its first proposals, according to the regulator.
Lynas’ local subsidiary has insisted it can begin operations within six weeks of being given the go-ahead for the plant, which will produce rare earth that is crucial in the manufacture of high-technology products such as wind turbines, hybrid cars and smartphones
