Australia PM Morrison Interferes in Internal Affairs for Rare Earth

Australia Lynas Rare Earth Company is actively developing its supply chain territory, and the Southeast Asian country Malaysia is its key development goal. However, much Malaysian media have recently exposed that Australian Prime Minister Scott Morrison tried to interfere in internal affairs due to rare earth element (REE) issues and proposed to former Malaysian Prime Minister Mahathir Mohamad to abandon the licensing conditions imposed on Lynas.

The Australian High Commissioner to Malaysia Andrew Goledzinowski said that the recent reports that Morrison asked Mahathir to abandon the licensing conditions imposed on Lynas in 2019 were incorrect. He issued a statement stating that the Australian government has never asked the Malaysian government to cancel or change the conditions in the six-month license obtained on August 15, 2019.

When Mahathir provided the operating license at that time, three permit conditions were attached. Lynas must submit a rare earth plan, must work out a permanent waste storage tank location, and must stop all relevant radioactive waste systems.

Malaysian society launched a "Stop Lynas" protest before, wearing a green shirt to convene a demonstration, urging the government to drive the Lynas factory out of Malaysia. The company has repeatedly emphasized that the waste discharged from the REE plant is not harmful.

Andrew emphasized: "Australia welcomes the Malaysian government and decided to grant Lynas a 6-month license in August 2019 and a 3-year license in February 2020. Similarly, Lynas announced that it hopes to comply with new conditions in the national government license."

In response to Morrison's criticism of interfering in internal affairs, Andrew responded: "Malaysian industrial regulations are a matter for the Malaysian government. What Australia has proposed is that these decisions are based on scientific evidence in the Malaysian government and international target research.

Andrew does not deny that the construction of the Lynas plant is facing fierce public debate in Malaysia, including the strong language of the media. But he explained: "This is exactly what applies to a free and democratic society. What I want to clarify is that participants in this debate, including the Malaysian media, should clarify the facts in advance."

Looking back on Andrew's review articles published in Malaysia's Sin Chew Daily and The Star in 2019, he praised Malaysia's pro-scientific decision and demonstrated that Malaysia is a safe destination for major investments in advanced manufacturing.

Lynas, the largest rare earth manufacturer outside of China, said that the demand from its customers has rebounded to the level before the Covid-19 epidemic, and only the transportation delay caused by the blockade of the Suez Canal in March hindered the company from achieving a record quarter. On the basis of the average selling price of all REE materials of US$35.5 per kilogram, Lynas’ sales revenue in the first quarter of this year was US$110 million, down from US$119.4 million in the previous three months.

Australia Lynas acknowledged that the Chinese market's demand for REE core materials is increasing day by day, and the output of Chinese manufacturers has skyrocketed in recent years. The company pointed out that there are currently many smaller Chinese rare earth manufacturers joining the market, and they also expect China’s Northern Rare Earths to reach its goal of doubling production growth within three years.

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