In 2011, secret report warned of dangers of Lynas’ rare earth’s wastes in Malaysia
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Secret report: Lynas told of Malaysia risks in 2011, The Age,By Latika Bourke, April 15, 2019, Lynas management was warned eight years ago that the rare earths miner had failed to “engage meaningfully” with Malaysia and its operations in the country could be jeapordised if it did not change the way it dealt with environmental concerns and the government.The Herald and Age have obtained a confidential report delivered to Lynas in 2011 by Australian advisory firm Futureye that concluded the company was in “urgent need” of winning the local community’s support for the Malaysian operations’ future.
The report warned that failure to win local support would not just jeopardise the company’s Malaysian business but also call its reputation as a good corporate citizen into question at home in Australia. Lynas is fighting off a $1.5 billion takeover bid from Perth-based conglomerate Wesfarmers with the viability of its operations now hinging on a decision by Malaysian Prime Minister Mahathir Mohamad. The company continues to face major concerns about its 100 hectare materials plant in Kuantan, with community groups stepping up pressure on the government to suspend its operating license. The Wesfarmers takeover has been mired in allegations of aggressive tactics and has caught the attention of the corporate regulator………. Another condition — something the company [Lynas] has previously said was unfeasible — was the removal of more than 450,000 tonnes of low-level radioactive waste from the country by September. Lynas’ auditor Ernst & Young said in February that if the company could not successfully negotiate with the Malaysian government about its processing plant, there was “a material uncertainty that may cast significant doubt about the consolidated entity’s ability to continue as a going concern”. The confidential 2011 report by Futureye appears to anticipate some of these issues. ….
Lynas’ failure to “engage meaningfully” in the two years it had been in Malaysia meant “community outrage is escalating at a time when Lynas is awaiting its pre-operating licence”. Unless Lynas began immediate engagement, the report argues, the issue would grow beyond the company’s control. The 2011 document also warned Lynas about its reliance on an administration headed by then prime minister Najib Razak, Mr Mahathir’s political rival who is now being investigated for corruption. “Corruption (or suspected corruption) is a serious issue that requires proactive management by Lynas … whether there is a direct allegation of any corrupt practice in relation to the project or not, it is essential that Lynas publicly commits to non-corrupt practices.”……. https://www.theage.com.au/business/companies/secret-report-lynas-told-of-malaysia-risks-in-2011-20190412-p51der.html |
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