- Lynas Corp (LYC) has moved a step closer to construction approval for a permanent deposit facility for water leach purification residue
- The Malaysian Minister of Science, Technology and Innovation recently announced the proposed site at Bukit Ketam had been approved
- The design, construction, operation and decommissioning plan for the site still need to be ticked off before final approval
- Lynas is aiming to submit the relevant studies and paperwork over the coming months, with development planned to start in early 2021
- Lynas Corp is trading 2.4 per cent lower at $2.40
Lynas Corp (LYC) has moved a step closer to construction approval for a permanent deposit facility (PDF) for water leach purification residue.
The facility will store iron phosphate, which is classified as very low-level radioactive waste under International Atomic Energy Agency (IAEA) guidelines. This classification makes the waste "suitable for disposal in near-surface landfill-type facilities with limited regulatory control," according to IAEA guidelines.
Malaysian Minister of Science, Technology and Innovation, Khairy Jamaluddin, recently announced the Atomic Energy Licensing Board had approved the proposed site at Bukit Ketam for the construction of the PDF.
The approval comes with caveats though, as there's still a bit of regulatory red tape to navigate before the project can actually go ahead.
The design, construction, and operation of the site will all need to be ticked off, as well as the facility's decommissioning plan. The planning will have to meet Malaysia’s regulatory requirements, IAEA recommendations and international best practices to gain the final seal of approval.
Lynas is aiming to submit the relevant studies and paperwork over the coming months, with development planned to start in early 2021.
Lynas Malaysia is the only major factory outside China to produce separated rare earth products. The facility already has an eight-year track record of safely managing water leach purification residue in regulator-approved storage.
The new PDF will provide further certainty of both the continuation of operations at the Malaysia plant, as well as the futures of over 650 direct employees.
Lynas Corp is trading 2.4 per cent lower at $2.40 as at 2:35 pm AEST.