Pakistanis angry over detentions in Times Sq. case Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They
AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e
BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German
Minister seeks closure of anti-Berlusconi websites Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who
By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an
Edition:
U.S.
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
Home
Business
Business Home
Economy
Technology
Media
Small Business
Legal
Deals
Earnings
Social Pulse
Business Video
The Freeland File
Markets
Markets Home
U.S. Markets
European Markets
Asian Markets
Global Market Data
Indices
M&A
Stocks
Bonds
Currencies
Commodities
Futures
Funds
peHUB
World
World Home
U.S.
Brazil
China
Euro Zone
Japan
Mexico
Russia
India Insight
World Video
Reuters Investigates
Decoder
Politics
Politics Home
Election 2012
Issues 2012
Candidates 2012
Tales from the Trail
Political Punchlines
Supreme Court
Politics Video
Tech
Technology Home
MediaFile
Science
Tech Video
Tech Tonic
Social Pulse
Opinion
Opinion Home
Chrystia Freeland
John Lloyd
Felix Salmon
Jack Shafer
David Rohde
Bernd Debusmann
Nader Mousavizadeh
Lucy P. Marcus
David Cay Johnston
Bethany McLean
Edward Hadas
Hugo Dixon
Ian Bremmer
Lawrence Summers
Susan Glasser
The Great Debate
Steven Brill
Jack & Suzy Welch
Frederick Kempe
Christopher Papagianis
Breakingviews
Equities
Credit
Private Equity
M&A
Macro & Markets
Politics
Breakingviews Video
Money
Money Home
Tax Break
Lipper Awards 2012
Global Investing
MuniLand
Unstructured Finance
Linda Stern
Mark Miller
John Wasik
James Saft
Analyst Research
Alerts
Watchlist
Portfolio
Stock Screener
Fund Screener
Personal Finance Video
Money Clip
Investing 201
Life
Health
Sports
Arts
Faithworld
Business Traveler
Entertainment
Oddly Enough
Lifestyle Video
Pictures
Pictures Home
Reuters Photographers
Full Focus
Video
Reuters TV
Reuters News
Article
Comments (0)
Slideshow
Full Focus
Editor's Choice
Our best photos from the last 24 hours. See more
Images of April
Follow Reuters
Facebook
Twitter
RSS
YouTube
Read
"The Voice" set to crown a winner
08 May 2012
Would-be suicide bomber was planted, or turned informant
08 May 2012
Florida nabs white supremacists planning "race war"
08 May 2012
Exclusive: China considers delay of key party congress: sources
08 May 2012
Second masseur accuses John Travolta of sexual battery
08 May 2012
Discussed
154
One in seven thinks end of world is coming: poll
122
Obesity fight must shift from personal blame: U.S. panel
75
April hiring seen picking up
Watched
Hungry zoo lion faces off with unfazed toddler
Thu, May 3 2012
Obama leads Romney, helped by independents
Tue, May 8 2012
Windy weather makes for dramatic plane landings in Spain
Thu, Apr 26 2012
Pictures
Reuters Photojournalism
Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography. See more | Photo caption
Gay marriage battle
A look at the legal battles and the controversies over gay marriage. Slideshow
Mystery animal deaths
Peru declares a health alert after hundreds of birds and dolphins wash up dead in the past few months. Slideshow
Citizen backlash keeps Malaysia rare earth plant on hold
Tweet
Share this
Email
Print
Related News
Malaysian police, protesters clash, raising poll doubts
Sat, Apr 28 2012
Analysis & Opinion
Who’s in charge of the world? No one
Space mining plan more than just sci-fi fantasy
Related Topics
World »
Environment »
Australia »
1 of 5. Activists hold placards as they demonstrate against Lynas Corp in front of the main entrance of the Lynas factory in Gebeng, 270 km (168 miles) east of Kuala Lumpur, in this April 19, 2012 file photograph.
Credit: Reuters/Samsul Said/Files
By Siva Sithraputhran
GEBENG, Malaysia |
Wed May 9, 2012 2:53am EDT
GEBENG, Malaysia (Reuters) - The expensive machinery lies silent, idling as Malaysia's government weighs a delicate decision to allow shipments of raw material to arrive from Australia and finally start operations at the world's largest rare earths plant outside China.
At the industrial estate on the country's east coast, 20 or so protesters gathered in the searing afternoon heat have begun a chant. "No to Lynas. Lynas go home!".
The handful of demonstrators seems an unlikely obstacle to plans by Australia's Lynas Corp to build its company-making 2.5 billion ringgit ($800 million) plant, seen as crucial to challenging China's near monopoly on the production of rare earths, used in items ranging from smartphones to smart bombs.
But the expanding protest movement they represent, feeding off broader frustrations with Malaysia's government as elections loom, has already delayed the project by eight months and cast a shadow over its future.
The resistance - fed by social networks and Malaysia's increasingly lively independent online media - also raises broader questions over the global expansion of an industry that has created huge environmental problems in China, which currently accounts for about 95 percent of global supply.
"Western countries don't want it. Why should we in Malaysia?," said Norizan Mokhtar, who lives less than 10 km (6 miles) from the plant in the industrial area of Gebeng, close to fishing villages and Kuantan, a city of half a million people.
"My youngest is six, the effects might not be seen now but in the future. We eat fish every day, what if there is radiation?"
She's afraid controls on the plant will become slack after the first few years.
Lynas has been plagued by delays and controversy in Malaysia since it broke ground on the plant two years ago with the aim of easing China's grip on the supply of rare earths and capitalizing on rising prices for the material.
Its share price has halved since early last year as investors worry that it will lose out in the race to feed surging world demand.
Lynas has orders covering its first 10 years of production. Japan, the world's biggest consumer of rare earths, is counting on Lynas to supply 8,500 tonnes a year by early 2013.
"Our customers are waiting," Mashal Ahmad, the managing director of the Lynas plant, told reporters during a tour of the plant for media last month.
"We have nothing to hide," he said, adding that "too much misinformation" had been spread about the company.
CAUGHT OFF-GUARD
Prized for their magnetism, luminescence and strength, world consumption of rare earths is estimated to rise to around 185,000 metric tonnes (203,928 tons) a year by 2015, from 136,000 tonnes in 2010.
China imposed export quotas in 2009 to fight pollution caused by illegal mining and processing, turning up the pressure to find alternative sources.
The Lynas plant is one of a handful under construction. It is 98 percent complete and would supply about 11,000 tonnes in its first year, eventually rising to 22,000 tonnes.
Elsewhere, Canada's Great Western Minerals is teaming up with a Chinese group to build a rare earth processing plant in South Africa, while U.S. firm Molycorp is set to churn out just under 20,000 metric tons of rare earth oxide this year at its site near California's Death Valley.
The Malaysian protest movement gathered strength last year after allegations - denied by Lynas - that it was cutting corners on safety, fanning fears that radioactive run-off from waste material stored at the plant could seep into the local water system after being chemically treated.
An estimated 8,000 people rallied against Lynas in Kuantan in February and the issue has been seized on by the country's opposition to show the government is out of touch with citizens' concerns.
Malaysia's government at first showed few signs of heeding the protesters' concerns, but it appears to have been caught off-guard this year by the strength of opposition to the plant as it prepares for a closely run election within months.
Pahang, the state where the plant is being built, is a key stronghold for the long-ruling Barisan Nasional coalition that it can ill-afford to lose. Responding to lobbying by citizens' groups, the government set up a parliamentary select committee in March to look into the safety of the plant, after halting a conditional temporary operating license granted in February.
A decision is expected after the committee presents its findings at the end of June.
Prime Minister Najib Razak has vowed the government will not allow Lynas to operate the plant if there is any doubt over its safety. But he must also weigh the costs of sending a negative signal to foreign investors as he tries to reinvigorate the economy of the Southeast Asian country.
"We will never compromise the safety of the people and the environment," he said in a radio broadcast last month.
Lynas officials say they are confident the plant will win approval in coming months. Opponents suspect the government is waiting until after the election to approve the plant at a less sensitive time.
"The timing could be all too convenient," said Fuziah Salleh, a local opposition member of parliament who has thrown her weight behind the protest movement. "Basically it is a delay tactic until approval."
Fuziah and leaders of the protest movement "Stop Lynas, Save Malaysia" say they will continue to fight against Lynas in the court if it wins approval, signaling more uncertainty ahead.
The opposition - which made historic gains in 2008 polls and has an outside chance of winning the next election - has said it will scrap the Lynas project altogether if it takes government.
TAINTED HISTORY
Opponents say the Lynas plant doesn't meet with best practice standards for the industry as it is too close to heavily populated areas and in a place where the ground water level is high. Molycorp's plant in California, by comparison, is situated far from residential areas in an arid climate.
"There never was any public consultation before the building of the plant got underway. I faced resistance from the start," said Fuziah.
If the protesters' views are trenchant, then Lynas' resolve is also hardening. The company has started legal action against a Malaysian news portal and a protest group for defamation.
Rare earths have a tainted history in Malaysia. In 1992, a unit of Mitsubishi Corp closed a rare earths plant in Bukit Merah in Perak state amid acrimony over radioactive contamination. Residents of Bukit Merah say they have suffered a high numbers of birth defects and leukemia.
Lynas says comparisons with Bukit Merah are unfair because the raw material there was over 40 times more radioactive than the concentrate to be used at its plant.
It says commercial - not environmental - reasons brought it to Malaysia, where the government has granted the company "pioneer" status, giving it a 10-year tax holiday.
Lynas says it has added earthen fill to the site for the storage facility to double the distance between waste products and the water table to 4.1 meters (14 feet).
The waste will contain low levels of thorium, a radioactive chemical which can cause cancer, but the concentration of thorium is very low and stays low, it says.
But it isn't clear how long the waste matter will be stored at the plant. Lynas says its storage facility has been built to a standard that would allow the waste to be stored permanently, although it only expects storage for 17 or 18 years. It hopes to sell the waste as a base for road construction after reducing its radioactivity concentration to safe levels.
Treated waste water from the plant will go into the Balok river at an average rate of 213 cubic meters (7500 cubic feet) per hour, raising concerns about the impact on marine life and on the livelihoods of the fishermen along the coast. Officials at Lynas say the concerns are unfounded and the discharged water will meet with Malaysian regulations.
From her perch close to the Balok river, Kak Su, who sells the daily catch local fishermen bring in, smiles quietly. She is resigned to her fate.
"The government will decide, I don't think they'll make a bad decision," she says. "I don't think the protesters will get anywhere," she adds.
(Editing by Stuart Grudgings and Richard Pullin)
World
Environment
Australia
Related Quotes and News
Company
Price
Related News
Tweet this
Link this
Share this
Digg this
Email
Reprints
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (0)
Be the first to comment on reuters.com.
Add yours using the box above.
Edition:
U.S.
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
Back to top
Reuters.com
Business
Markets
World
Politics
Technology
Opinion
Money
Pictures
Videos
Site Index
Legal
Bankruptcy Law
California Legal
New York Legal
Securities Law
Support & Contact
Support
Corrections
Connect with Reuters
Twitter
Facebook
LinkedIn
RSS
Podcast
Newsletters
Mobile
About
Privacy Policy
Terms of Use
AdChoices
Copyright
Our Flagship financial information platform incorporating Reuters Insider
An ultra-low latency infrastructure for electronic trading and data distribution
A connected approach to governance, risk and compliance
Our next generation legal research platform
Our global tax workstation
Thomsonreuters.com
About Thomson Reuters
Investor Relations
Careers
Contact Us
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.