Malaysian govt rejects appeal against rare earths plant

Last Updated: Fri, 15 Jun 2012 23:50:00 +1000

The Malaysian government has dismissed an appeal by residents against a rare earths processing plant in the county's east.

The decision removes the main stumbling block for production to begin at the plant, owned by Australia's Lynas corp.

Malaysia's Science, Technological and Innovation Ministry says there was no strong justification nor scientific or technical basis to set aside the temporary operating licence given to the plant in January.

Residents in the city of Kuantan have been protesting against the plant's development, citing environmental concerns.

The rare earth plant is considered pivotal to breaking China's stranglehold on the industry.

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