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The decision enables the Sydney-based rare earths miner to continue operations at its US$800 million plant in the eastern town of Kuantan, in Pahang state, in the face of residents’ opposition.
The appeal court affirmed a lower court decision which denied a group of residents living near the facility a stay of Lynas’ temporary licence, pending a judicial review.
Lynas secured the licence in early September and began production on November 30 although activists have been protesting over alleged radioactive hazards since early 2011.
Environmental group Save Malaysia Stop Lynas, which is spearheading the move to scupper the firm’s plans, said it will now focus on the February 5 judicial review of the government’s decision to award the temporary licence.
“The judge said the decision by the Kuantan High Court was correct and with good reason. It’s a small setback which we expected but the real long-term goal is winning the judicial review,” the group’s leader Tan Bun Teet said.
Lynas, meanwhile, hailed the legal victory saying it will continue its operations in Malaysia that began three weeks ago.
“There is no injunction or stay preventing Lynas from carrying out its operations at its Malaysian plant,” it added.
The refinery is set to become one of few sites outside China to process rare earths — metals used in high-tech equipment ranging from missiles to mobile phones.
Lynas and the Malaysian government have touted the facility as an important high-tech foreign investment project that will benefit the local economy and provide jobs.
But it has been dogged by criticism from environmentalists and residents, opposition that has galvanised a nascent “green” movement in Malaysia and seen anti-Lynas protests by thousands of people. — AFP.
Peter Tanyanyiwa
Online Reporter