Rare Earths in Australia and Processing in Malaysia. Corporate Who's Who

May 2 2012: Protest outside High Court In Kuala Lumpar

Citizens to Counter Lynas’ Defamation Suit May 2, 2012

SMSL together with a bus-load of residents from Kuantan joined by their supporters from the capital city Kuala Lumpur (KL) have converged outside the KL High Court this morning.

They will stage a peaceful protest action against Australia’s Lynas Corporation which will be seeking an exparte injunction to gag SMSL and Malaysian NGOs from expressing their concerns and opposition to the rare earth refinery project.

“As a citizen’s and civil society group, we have every right under the Malaysian constitution to protect our family, our livelihoods, our environment and our country.” Said Mr Tan Bun Teet, a Kuantan resident and the spokesperson for SMSL.

“Lynas is taking advantage of Malaysia’s weak civil liberty law by using this defamation legal action to try to silent us. In Australia, Lynas will not be able to do this to its critics. What kind of international standard is Lynas practicing here?” asked Mr Tan. SMSL is a people’s organisation consisting of a team of highly committed community volunteers backed up by strong public support from all over Malaysia and concerned citizens internationally.

SMSL has sought expert advice on the Lynas project. It has had investigative research carried out on Lynas Corporation and its rare earth project by highly qualified independent professionals both in Malaysia, Australia and elsewhere.

Professor Tan Ka Kheng, a chemical and environmental engineering expert and a waste management specialist explained “It is generally recognised that openness, trust and participation are all essential for communication and stakeholder involvement on radioactive and toxic waste. Yet Lynas has chosen not to do this.”

Professor Tan further added, “Malaysians are not new to rare earth refinery. I was involved in the Papan and Bukit Merah rare earth case. I am concerned that Lynas is trying to jump the gun to push ahead with its operations without having conducted a detailed EIA as require by law and to comply with the IAEA's recommendations, and without having found a safe permanent waste facility for its millions of tonnes of radioactive and toxic waste.” Lynas’ court action to try to silent civil society groups goes directly against its public stance that it will implement all of the International Atomic Energy Agency (IAEA) recommendations for its rare earth refinery project last June.

The IAEA has especially emphasized that Lynas should improve on its community engagement. Mr Tan commented, “Clearly, Lynas has failed to live up to its own words choosing instead to use Malaysia’s defamation law for its community engagement strategy.” “Our views and position are backed up by accurate and reliable data and research findings. SMSL has secured the support from high caliber expert witnesses ready to testify in court if and when the need arises.” Concluded Mr Tan.

For further comments, please contact: - Mr Tan Bun Teet, spokesperson for SMSL, Hp: +60 17 973 0576 - Professor Tan Ka Kheng, Technical Adviser for SMSL, Hp: +60 16 287 4248

April 28 2012: 80,000 People Demonstrate Against Malaysian Government In Kuala Lumpar

"A person familiar with the project, who requested anonymity because of the controversy associated with it, said Wednesday that electrical wiring at the project had still not been completed. Part of the problem is that some components were ordered late and could not be manufactured quickly, the person said, although Lynas has denied that. It would be very difficult, although not impossible, to run the refinery while continuing to install further wiring. Tan Bun Teet, who is involved in the appeal to the minister and is the chairman of the lobbying group Save Malaysia Stop Lynas, said the government should withdraw the company’s license. “We will take court action if the minister does not revoke the license,” he said. " (NY Times April 19 2012)

March 11 2012 Press statement of Save Malaysia Stop Lynas (SMSL) on Stop Lynas Protest in Sungai Lembing Against the Dumping of Lynas’ radioactive waste

This morning, hundreds of people braving the morning shower gathered at the inland resort town of Sungai Lembing to show their outrage at the latest proposal by the Director-General of the Atomic Energy Licensing Board (AELB) Raja Datuk Abdul Aziz Raja Adnan and Pahang Menteri Besar Dato Seri Adnan Yaakub to dump radioactive waste in the disused mine shaft of the town.

Amongst those present were local residents and owners of local businesses who feared that the proposal will ruin the town’s economy and future.

Protestors holding placards shouted “Stop Lynas! Lynas Go BACK to Australia!”

Members of SMSL and a number of other groups were present to show their solidarity with the people of Sungai Lembing. “How many more communities will the Government destroy for the sake of helping a foreign company profit from an unsafe rare earth plant?” asked Haji Ismail Abu Bakar, Vice Chairperson of SMSL.

Sungai Lembing is the water catchment for Kuantan. Dumping radioactive waste in the disused mine shaft risks contaminating ground water in a limestone environment. The transportation of huge amount of radioactive waste through the highway, passing kampungs and towns will further spread Lynas’ toxic waste around.

Sungai Lembing is a former mining town which has suffered years of economic downturn and neglect since mining ceased in the 1980s. This pretty valley town has just managed to find a niche market in weekend tourism to turn around its years of economic depression and unemployment.

Haji Ismail continued, “The people of Sungai Lembing will suffer the same fate as the fishermen and the community along the coast. It is unacceptable and totally unjust to expect ordinary citizens to pay such high price while a foreign company gets to pollute our river, our sea and now our water supply and community tourism – ALL TAX FREE!”

The presence of a radioactive waste dump will essentially undermine investment and effort local people have put into the tourism trade. It will ruin their future and turn the busy tourist town into an abandoned town like Papan in Perak.

Papan is the nearest town to the permanent waste dump site of the now closed Mitsubishi Asian Rare Earth (ARE) toxic waste. ARE was closed by Mitsubishi due to the bad reputation it was getting for the increase cases of fatal cancer, birth defects and miscarriages in the surrounding area.

To date, the permanent waste dump is still facing problems for it has been leaking in the last 20 years and is still being rebuilt.

Haji Ismail concluded, “The AELB has failed to manage the radioactive waste from the previous rare earth plant. AELB said ARE was safe then. Now, the government has just granted another licence for a foreign corporation to pollute and contaminate our country at the expense of rakyat’s health and our livelihoods.”

Location of Sungai Lembing (yellow dot), Kuantan (green dot). A distance of only 25-30km.

Feb 26 2012: Australia’s Lynas Rare Earth Plant made history in Malaysia today - Nationwide rally to stop the project

An estimated 20,000 citizens together with Malaysian civil society organisations converged in Kuantan for a rally to protest against the Lynas project and to demand for a clean and safe future for Malaysia.The Stop Lynas campaign has escalated into the biggest ever environmental issue for the country. Participants arrived from all over the country including the east Malaysian states of Sabah and Sarawak.

“Today marks the beginning of a nation-wide campaign to stop the Lynas rare earth project. Malaysians have made our stand and we do not want this hazardous project in our shore.” Said Mr Wong Tack, a key organiser of today’s event.

The Lynas rare earth refinery project was constructed with a speedy approval process without any public consultation or a waste management plan. It was not until March 2011 when the New York Times reported that the world’s largest rare earth plant was being built in the Industrial estate of Gebeng near Kuantan that residents were jolted into action to start protesting against it.

Last May Responding to public pressure, the Malaysian Government requested the International Atomic Energy Agency (IAEA) to review the project. The IAEA made 11 recommendations to the Malaysian Government. The Government adopted all of the 11 recommendations which included a more extensive public consultation and a waste management plan to address the permanent disposal of the radioactive waste and plant closure issues.

However, despite not having a safe permanent waste disposal plan and on-going public protests where over one thousands submissions were made to the Government in response to Lynas’ application for a licence, the Government issued a temporary operating licence to Lynas in early February. This has sparked outrage amongst Malaysians which culminated in this morning’s historical rally.

“We are peace loving citizens. I took part in this rally because I have two little children. Kuantan is a wonderful place to raise our children and I do NOT want Lynas to ruin that for my family.”

Malaysia has draconian laws which outlaw public actions. Yesterday, truck-loads of riot squat were paraded through the town to intimidate residents. The town council forced organisers of the rally to relocate it from the public field in the heart of the town to another further away in an attempt to hide the event from the general public’s view. These intimidations have done little to deter residents from coming out in force to show their strong opposition to the Lynas project.

Andansura, Chairperson of the Stop Lynas Coaltion was grateful and thankful for the strong presence of so many people.

He said, “I know many people living in villages close to the Lynas plant. They have been coerced into accepting the plant. They know the plant will pollute their fishing grounds but they are powerless to do much. Today, they know they are not alone in this struggle. It is heartening to see so many people.”

This is the first time ordinary people took to the street in such large numbers for an environmental issue in Malaysia. This is also the first time an environmental issue has gone national in such large-scale.

“Today’s turn out at the rally should show the Government of the day how strongly Malaysians feel about the Lynas plant and how far they will go to stop it. We comment the Government for not taking harsh actions against the protestors and we hope the Government will heed the people’s concerns by cancelling the licence. After all, it has a duty of care for its citizens and the natural environment over the vested interest of a foreign corporation!” Concluded Andan.

For further comments, please contact: Mr Andansura Rabu Tel: +60 179 868 969 Mrs Phua Seet Ping Tel: +60 129 223 780 Mr Wong Tack Tel: +60 138 851 232

February 23 2012: Unit To Check On Rare Earth Plant

February 23 2012: Lynas faces New Malaysia Challenge

February 23 2012: Himpunan Hijau Sees Red Over No Green Light

February 22 2012: Lynas Devil Waiting At Every Doorstep

February 22 2012: Lynas Faces Claim Against Malaysia Rare Earths Plant Licence

February 22 2012: Government Fails To Learn From Bkt Merah Tragedy

February 13 2012: Ire Over Lynas Sham Plant Consultation

February 2 2012: Malaysians Protest Against Australian Rare Earths Plant (AlJazeera Story on Youtube)

Press statement of the joint press conference Thursday, February 02, 2012 by Save Malaysia Stop Lynas (SMSL)

SMSL was outraged and appalled by the announcement of the Atomic Energy Licensing Board (AELB) yesterday to issue a pre-operational licence to Australia’s Lynas Corporation for its controversial Gebeng rare earth refinery plant.

Mr Tan Bun Teet, Chairperson of SMSL commented: “The approval given by the AELB totally ignored the concerns and comments provided by the public who took the trouble to wade through Lynas’ application. The public has submitted no less than a thousand comments and suggestions to AELB on the 26th. Merely 3 office working days later AELB has decided to give Lynas a temporary licence.”

“Has the AELB really understood the risks and hazards of this project? The public review was a total charade, a sham and a false pretense in public consultation. It is just another public relation exercise for the Lynas project.” Added Mr Tan.

In the AELB media statement, it is clear that NONE of the suggestions and objections raised by the public and independent experts in the field was adequately addressed!

SMSL will not hold back any more but will take all possible actions to Stop Lynas.”

The Lynas rare earth project known as Lynas Advanced Materials Plant (LAMP) is ten times bigger than the now closed Asian Rare Earth project in Bukit Merah.

Rare earth processing has long been linked to devastating environmental pollution. The LAMP will be discharging huge amount of pollution in all streams – air, water and solid as disclosed in the two documents by Lynas. Each of the streams contains radioactive particles and a range of unknown hazardous substances yet to be declared by Lynas.

The plant is already posing problems as it is in a flood plain. Contaminated water will be certain to overflow into the surrounding area, into the Balok River and the sea which will affect the range of marine life.

Worst, it is located in an environmentally sensitive area next to an important mangrove area and the South China Sea. A significant proportion of Malaysian seafood is caught here. Tourism the other growing industry for Pahang is based on the pristine coastal ecosystem will be hit hard in the shadow of the world’s largest rare earth refinery.

In granting Lynas the licence, the AELB has totally ignored advice and recommendation made by Malaysia’s most qualified professionals - the Malaysian Medical Association and the Pahang Bar Association.

Dr Yu Siew Hong a local general practitioner and an active member of SMSL said, “There is no safe dose of radiation. The health of our people will be put at risk. The AELB has not learned from its mistake at Bukit Merah. The people will be outraged and they will do whatever it takes to stop this toxic project.”

SMSL has been taking a series of civil and fair action. Of the various stop Lynas groups, SMSL by far has engaged most extensively with the relevant authorities. The AELB approval is the last straw for SMSL.

“The government has left us no choice but to take legal action and to embark on a nation-wide public campaign to vote the Government out in the next general election. We want a safe and clean Malaysia for all. We cannot afford to let a Government which does not know its duty of care to bring hazards to our country.” Concluded Mr Tan.

SMSL has organized a public event on Saturday 4th of February from 5pm till 10 pm. WE call upon all concerned residents of Kuantan and the greater Kuantan to come to Teluk Cempedak beach to make a wish. We pledge with others to change the government to save our homeland. Kuantan is a beautiful town. We do not want to live in the shadow of the pollution of the world’s biggest rare earth refinery.

Let’s make a thousand wishes and each of us shall strive to work towards making our wishes come true!

SMSL volunteers will be present to guide you. Prepare your wishes and write them on a long strip of paper or cloth prior to coming to TC and they will help you attach it to the balloon. Let’s all work towards a better government that will adhere to the principles of democracy i.e. a government by the people; of the people and for the people !

For further comments, Mr Tan Bun Teet Hp: +6017 973 0576, Chairperson of SMSL and a local resident of Kuantan Dr Yu Siew Hong – Hp +6012 900 7785, a local doctor (GP) and a member of the Malaysian Medical Association

"Lynas expects a decision on the issuance of its temporary operating licence to be made when the AELB board meets next Monday. But AELB director general, Raja Abdul Aziz Raja Adnan, has said that while Lynas will be on the agenda, the board may not reach a decision on the abovementioned date." Jan 26 2012

February 3 2012: Rare Earths Decision Big Boost For Lynas

February 2 2012: Lynas Gets Temporary Malaysian Operating License

January 31 2012: Rare Earth Metal Refinery Nears Approval In Malaysia

"Lynas announced last Tuesday that a heavy monsoon and some engineering work had delayed completion of the refinery again, and that it would be ready in the second quarter of this year ... One setback for the Lynas project is that a crucial contractor, AkzoNobel, pulled out this autumn, according to engineers here and internal company e-mails. The Dutch chemicals multinational had a contract to supply important resins ... Engineers involved in the project said, and internal e-mails showed, that AkzoNobel withdrew from supplying the chemicals after it was told that the fiberglass liners would be installed in concrete-walled tanks that have a problem with rising dampness in the floors and cracks in the walls. AkzoNobel had been in discussions about the problem of rising dampness, but only became aware of the cracks this autumn, according to the engineers and the memos ..."

January 31 2012: Malaysian Opposition Said Would Scrap Rare Earths Plan

January 31 2012: Lynas Warns On Any Move To Shut Rare Earths Plant

January 28 2012: Opponents Of Lynas To File Suit

January 27 2012: Fears Still Linger Over Lynas Plant

January 26 2012: Anti-Lynas Protest Against Licence Issuance

More Recent Images Can Be Viewed Here

Press statement of the joint press conference January 26, 2012

By Save Malaysia Stop Lynas (SMSL) and Stop Lynas Coaltion(SLC) on Lynas Malaysia rare earth refinery application for pre-operation licence

Together with concerned citizens including representatives from the Pahang Bar Council and the Malaysian Medical Association who converged at the Pahang Secretariat Office, SMSL and SLC delivered a joint submission to MOSTI and the AELB urging the two authorities to reject Lynas’ application until a safer plan is produced.

Mr Tan Bun Teet, the Chairperson of SMSL lamented, “We are disappointed but not surprised by the very weak application presented by Lynas. Most worrying of all is that Lynas’ proposed waste management plan is full of holes and is totally unsafe. Under no circumstance should the Malaysian Government issues the licence.”

Lynas proposed to turn its waste into commercial gypsum and fertiliser enhancer. If accepted, this plan will result in hazardous and radioactive substances being scattered into residential houses, offices, farms and plantations.

“The Government must enforce its own law to make sure Lynas carry out a detailed environmental impact assessment. Given the high population density, a social impact assessment should also be carried out before considering any further application for licence by Lynas for the LAMP. Both of these documents when done should be easily accessible to the public with adequate time to comment and scrutinise.” Said Andansura Rabu the spokesperson and chairperson of the Stop Lynas Coalition and a resident of Balok, the town closest to the LAMP.

The towns and villages along the coast from Kuantan to Kemaman consist mainly of traditional fishing communities. Hundreds of families rely on the fishing industry for their livelihoods. Contaminated water from the Lynas plant will be discharged into the Balok River which drains into the South China Sea risking serious pollution of these important fishing grounds and tourism hotspots.

Tourism is a growing industry along the east coast. The prestigious world-class Club Med resort is only about 15km north of the LAMP. “If the Government issues the licence without a proper detailed EIA and a social impact study, the local economy and the health of citizens will be severely affected. Besides, who will want to holiday near a massive toxic plant and swim in the sea contaminated with rare earth pollution?” Added Mr Tan.

SMSL and SLC reiterated their stance to the Government that both groups will do everything possible to ensure there is a safe and clean future for Malaysia.

SMSL and SLC have raise funds from the public to explore legal avenues so that legal actions can be taken if Lynas is allowed to operate despite its unsafe waste management strategy.

“We hope the Government will seriously consider the comments and suggestions presented through the submissions. Otherwise, we will have no choice but to take the matter to the court.”

Jan 2012: Lynas retention/settlement ponds already close to full after monsoon rains. One decent monsoon event could see millions of litres of water wash off the site and into the Balok River. How many different toxicant contaminants could be released into the Malaysian environment? Poor choice of site location for such a risky project. Will Lynas investors foot the bill for the clean up or will the Malaysian taxpayer have to bail the company out when the inevitable happens?

Jan 2012: Lynas carpark on western side of site, already being inundated with potentially toxic water. This portion of the facility sits on a natural drainage line, draining in a westerly direction - eventually reaching the Balok River. Note the colour of the water covering the carpark. It's the same as what is being held in the retention/settlement ponds. This raises the next question. Are the retention pond walls strong enough to contain monsoon amounts of rainfall or are they already leaking? What will happen if a catastrophic breach occurs and millions of megalitres of water are released into the Balok River? This development already has all of the hallmarks of a disaster in the making. Another point to raise is, are the retention ponds connected to local groundwater? Rumour has it that groundwater can be detected one metre below the surface of the facility. If this is so, if the groundwater becomes polluted either through poor drainage of the facility or poor construction of retention ponds, what is the extent of the groundwater and where does it eventually flow to? An area far greater than the site could be impacted through polluted groundwater.

Photo taken early December 2011, after a couple of days of rain just outside of the Lynas plant - the flooded areas are discharge drains of the plant. The solid waste retention ponds which Lynas said are safe semi-permanent waste disposal units for its radioactive waste, are lined only with 1.6mm HDPE plastic sheet on top of a layer of so-called impermeable soil. Most of the contractors had no idea they were building a rare earth plant initially....! The monsoon has only just started.

More Images Can Be Viewed Here

Background on the Lynas Rare Earth Project in Kuantan

1) Lynas Plant will use 720 tons of concentrated Hydrochloride Acid/Sulphuric Acid PER DAY

2) Lynas will produce 230,000 tons of solid waste PER YEAR and the toxic waste will be left behind permanently. Every year, at least 106 tonnes of radioactive thorium and a small quantity of uranium will be dumped amongst this waste. Lynas is expecting the refinery to operate for at least 10 to 15 years. Lynas has recently acquired another rare earth mine in Malawi with a higher thorium concentration than that of Mt Weld. Malaysians are worried that the amount of waste dumped in Malaysia will be even more than the amount specified in the PEIA. Thorium has a half life of 14 billion years and it is harmful to human when ingested through the air we breathe in or through contaminated food. Thorium is easily transported and spread through wind and water.

3) To keep the solid waste, Lynas will have to build a ground retention pond of 7 acres (2.8 hectare) with a depth of 8 meter PER YEAR essentially turning a massive area of coastal wetland into a toxic waste dump. There is little information on the engineering of the retention pond in making sure that the toxic waste does not escape, leak or leach into the surrounding environment. Malaysian have seen some terribly shonky contractors with many high costs infrastructure projects were poorly completed with leaks and cracks that would not have passed basic safety standard, except that the Government do not bother to enforce law on safety. Because of corruption, authorities turned a blind eye to the problems. A stadium in the neighbouring state collapsed within a year of its completion. There are countless of such problems and examples which the Malaysian public are well aware of. They are worried the Lynas plant will not be any different. I have heard complaints by a local resident that her family house was built by the same contractor currently building the refinery for Lynas. She is fearful because the contractor did a shonky job and her house is full of structural problems. She is shocked, to say the least, to learn that the same company is contracted to build the world’s biggest hazardous and complex rare earth refinery!

4) Lynas will produce 99,000 cubic metre of gas PER HOUR to be released into the atmosphere – again there has not been any detail provided on what kind of gas or particulates will be released into the atmosphere. Any air pollution will inevitably be carried inland from the wind brought in from the South China Sea everyday. In the monsoon rainy season, the gale force wind can travel a long distance inland potentially spreading the hazards over a large area as thorium dusts are very fine and light particles known to be easily carried by wind and water.

5) Lynas will drain 500 tons of waste water into the BalokRiver PER HOUR. This part of the BalokRiver is within a few kilometres from the river mouth which joins the South China Sea. It is unclear what level of toxicity and what kind of pollutants will be in the waste water. BalokRiver is a significant mangrove area in Malaysia with biologically diverse mangrove species and an important spawning and breeding grounds for a range of marine creatures and fish. Contamination of seafood is a real risk with so much waste water being drained into a natural river which flows into a major fishing ground for the local seafood industry. This part of the sea has been a long established habitat of the critically endangered leatherback turtles. There are pristine coral reefs and large marine mammals such as whale sharks and a number of other species which are of conservation significance. If the rare earth refinery goes ahead, it will inevitably lead to the extinction of the leatherback turtles in this part of Malaysia. Leatherback turtle watching is a major tourist attraction at specific locations along the coast. The nearest leatherback conservation site and hatchery is only about 15km away from the refinery. The coastal region also boost some of Malaysia's loveliest resorts. A world class holiday resort, Club Med is only 19 km away. In the last few years, tourism in this part of Malaysia has really taken off with many new water sports being introduced and taken up by international tourists.

6.) The Government of Malaysia has fast tracked the project even though the quality of the environmental and radiological impact assessments by Lynas corporation were of poor standard. The scope of their assessments were limited and most crucial issues such as health risks and the impact on the local natural environmental have been left out. Lynas Corporation have not provided any waste or environmental management plan which is mandatory if the plant is situated in Australia.

7.) Despite the hazards and risks as well as the massive environmental problems the refinery will bring to Malaysia, the Government has granted Lynas Corporation a overly generous 12 year tax holiday which means the company will not have to pay any tax, a stark contrast to the Mining Tax which the Australian Government will be introducing soon!

Protest in Sydney July 2011

August 18 2011: Race For Rare Earths (7.30 Report ABC Television Australia)

August 8 2011: US Military Depending On Chine For Rare Earths

August 4 2011: Premier Officially Opens Mt Weld Rare Earth Mine

July 16 2011: Lynas Cloaked in Secrecy and Lacks Transparency

"The Malaysian Bar continues to view with grave concern the developments with respect to the controversial construction of the Lynas Advanced Materials Plant (LAMP) at Gebeng Industrial Estate, Kuantan, Pahang..."

July 14 2011: Lynas Pushes On With Malaysian Expansion Plans

"LYNAS will push ahead with plans to expand production at its rare earths processing plant, despite community outrage and growing political discord in Malaysia. The rare earths miner yesterday announced it would contract Thai engineering company Toyo-Thai Corporation for between $US180 million ($A169.7 million) and $US210 million to oversee the project's second phase of construction, which will double production capacity at the plant in Kuantan, in the central Malaysian state of Pahang, when completed at the end of next year. The lead contractor for the first phase of con truction, UGL, was overlooked. It follows damaging allegations in The New York Times of cost-cutting and slipshod standards at the project..."

July 14 2011: The Global Race Is on For Rare Earths and Lynas

July 7 2011: Lynas Joins Forces With Siemens

July 6 2011: Lynas Plant Under Fire

July 5 2011: Mitsubishi Snaps Up Stake In Lynas

July 5 2011: Ex-Bukit Merah Owner Takes RM$1B Lynas Stake

July 5 2011: Activists Protest Rare Earth Metal Mine

July 1 2001: Rare Earth Miner Lynas Admits Faults Over Malaysia Plant

July 1 2011: Lynas Says New Malaysia Conditions Won't Cause Massive Plant Delays

July 1 2011: Malaysia Terms For Lynas

June 29 2011: The Fear Of A Toxic Rerun (NY Times)

June 15 2011: Australia Honours Lynas Head For Role In Healthcare

June 15 2011: No Waste Disposal Plan, No Licence For Lynas

AELB director-general Abdul Aziz Raja Adnan said the pre-operations licence would not be approved without the waste management strategies even if the outcome of the international expert panel was favourable to Lynas.

June 3 2011: Nick Curtis Nominated As Ernst & Young Entrepreneur Of The Year

June 1 2011: Lynas Chairman Nick Curtis Is One Shrewd Entrepreneur

Curtis developed an interest in rare earths working with Madame Bai Jie, a former head of raw materials at China’s state planning commission. He worked for six years from 1994 at a unit of China National Nonferrous Metals Industry Corp, which controlled all of China’s non-steel-related metals until 2000. Curtis bought Mt Weld from Anaconda Nickel, part-owned by Glencore International. Anaconda’s CEO was Andrew Forrest, today Australia’s richest man, with a fortune of $6.9 billion, according to Forbes Asia. Forrest went on to start Fortescue Metals, the fourth-biggest supplier of iron ore to China. Forrest “epitomises going long where China is short, which was the right move,” Curtis said. “I went long where China is ultra-long, which was the wrong move for the particular time” about 2002.

HIS EXCELLENCY AUSTRALIAN HIGH COMMISSIONER TO MALAYSIA KUALA LUMPUR Your Excellency RE: LYNAS ADVANCED MATERIAL PLANT (LAMP) NOW UNDER CONSTRUCTION IN GEBENG, KUANTAN , MALAYSIA. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

We the residents of Kuantan, Pahang, Malaysia are extremely concerned over the proposed construction and operation of the above plant.

It is common knowledge that : 1) LAMP will be processing rare earths oxide which contains Thorium 2) Thorium is a known radioactive material. 3) The mineral monazite which contains the Thorium is mined at Mount Weld in Western Australia and will be shipped to Kuantan, through Freemantle Port for processing at LAMP.

As your country is the originator of this dangerous material it is only right that your country must take responsibility for its presence here in this country.

We are not convinced by the assurances of LAMP, (and others allied to their cause), that the LAMP is safe. If it truly were so, surely then your country should readily keep that industry within its borders, or at the very least, be prepared to take back the waste ( which contains the deadly thorium). But your country has flatly refused to take back their own waste. Source The Star: 12/04/2011, Pg. N.23

Malaysians have had experience with Thorium, in the Bukit Merah plant in Ipoh, Perak. The consequences of that fiasco are still continuing. Children born deformed or retarded are still alive but unable to articulate their plight while some have lost their lives to cancer.

LAMP claims that their plant is totally different from that of Bukit Merah facility and that the levels of radioactivity is very low. But we remain unconvinced, nor are we prepared to experiment with our health and lives and those of our future generations.

We the residents of Kuantan, appeal to your higher values and call upon you , to do all that you can, to stop the shipment of this Thorium containing material from your country.

Surely, your country being a respectable member of the international community would not allow an International Convention to be flouted or circumvented.

Your Excellency, we the people of Kuantan do not want, in our midst LAMP and for that matter any other company that produces any form of radioactive material.

Your Excellency, does it not seem unconscionable to you that ore containing this radioactive material should be shipped 4000km from your country to Malaysia for the monetary gain of LAMP while the people of Kuantan are left to face the long term effects of the obnoxious waste? This Thorium waste, as your Excellency would already know, is radioactive and has a ½ life of 14 billion years. Thus, for generations to come , we the people of Malaysia will be exposed to the risks of radioactive contaminations.

Your Excellency, this Movement, is inspired by the most lofty ideals- that of human lives and health. We are resolved to continue our struggle to safeguard our air, water and soil from LAMP’s (and others’) deadly wastes. The vast majority of Malaysians share our mission. We again exhort you, to do all that you can, within your power to stop the dangerous ore from leaving your own shores.

We trust you understand and share our concerns. Many Australians in fact, already do, as the Internet reveals.

Mr Robin Chapple, MLC, Member for the Mining and Pastoral Region is “deeply worried” as expressed in his media release dated 13/04/2011.

I annex a copy of the release downloaded from the internet, for your further reading.

I trust that you will act as a good citizen of the world, and of Australia in particular.

Yours sincerely, …………………………………………………………………

Rare Earth Miners

And so, when Nick Curtis says he thinks there are “local political purposes” who have “sought to join the dots of the drama in Japan ... and fear in local community,” he may come across as underestimating the very reach of Japan's nuclear fallout and perhaps, a tad dismissive of the public's concerns over the potential environmental and social risks of having a rare earths facility in one's backyard. If such facilities are safe and brings enormous economic benefits to a country, then why is it that China controls over 90% of the world's supply of rare earth elements?

“Lynas said it decided to walk away from the deal after its independent directors consulted with the miners institutional shareholders. The shareholders were worried that the profile the sale had attracted was distracting management from focussing on developing its core Mount Weld rare earths deposit... Forge shares crashed, losing almost half their value to close at 48c yesterday. Lynas will reimburse Forge $600,000 to cover third-party costs incurred..."

"Police warned today that stern action will be taken against anyone trying to create chaos from the protest against the building of a rare earth plant in the Gebeng industrial area here."

May 11 2011: Lynas Corporation granted licences to operate Mount Weld Concentration Plant

Lynas Corporation has taken another step forward at the Mount Weld Concentration Plant. Licences have been granted by the Western Australian Department of Mines and Petroleum, and the Western Australian Department of Environment and Conservation. With the completion of the regulatory requirements, the result is that the first feed of ore into the plant will occur within a week.

Lynas Corporation (ASX: LYC, OTC: LYSDY) has raised A$20 million through issuing 9,756,324 shares at $2.05 per share via an oversubscribed share purchase plan (SPP). The SPP was underwritten by J.P. Morgan Australia Limited and the new shares will be allotted under the SPP on 3 May 2011. The funds will be used for additional expenditure including preliminary work on the Kangankunde Deposit in Malawi, the purchase of additional equipment and first fill chemicals for the Lynas Advanced Material Plant in Malaysia and general working capital for the company. Lynas received applications for about A$58.9 million worth of new fully paid ordinary shares. All eligible shareholders who applied for shares will receive about 828 new shares.

On March 31 Lynas finalised a US$325 million (A$325 million) financing package with Japan's Sojitz Corporation (2768.T) to fast track a phase-two expansion of its rare earths project at Mount Weld. Lynas owns the richest known deposit of Rare Earths, also known as Lanthanides, in the world at Mount Weld, near Laverton in Western Australia. Lynas will concentrate the ore mined at Mount Weld in a Concentration Plant approximately 1.5km from the mine. The concentrate produced by the Concentration Plant will be shipped in sea containers and transported by road and ship to the east coast of Malaysia to the Lynas Advanced Materials Plant (LAMP), Malaysia, to process the Mount Weld concentrate through to separated Rare Earths products.

1/5/11: He said recent publicity - about the controversial sale of part of Mt Weld to Forge Resources and the Malaysian environmental review - were distractions to the main game of bringing production on line at a time of higher spot prices for REE. http://www.topstocks.com.au/stock_discussion_forum.php?action=show_thread&threadid=652635#p652635

"The Herald has learnt the corporate regulator is treating an investigation of Mr Curtis 25, on insider trading suspicions raised by a court judgement, as a priority matter....Hartman was jailed for making $1.9 million in illegal profits by using information about the sharetrading of his former employer, Orion Asset Management. But Hartman's insider trading sentence included an extra 18 months for confessions related to the insider trading offence of "tipping" Mr Curtis. Mr Curtis, as recipient of those tips, has faced no visible action by ASIC. ASIC's interest is understood to be based on the extent of misconduct by Hartman and Mr Curtis revealed in the sentencing of Hartman. Hartman's voluntary confession also put the onus on ASIC to pursue further inquiries."

Lynas executive chairman Nicholas Curtis is non-executive chairman of Forge and a 15 per cent shareholder of Forge. He stands to get 24 million performance shares in Forge - worth close to $30 million at current share prices - if the deal succeeds.

KUALA LUMPUR, April 28 — Dogged by controversial reports, Lynas Corp said it was too early to talk about the radioactive content of its newly-bought rare earths mine in Malawi or whether it will be shipped to its RM700 million refinery in Pahang for processing. “Lynas finalised the acquisition of the Kangankunde Carbonatite Complex (KGK) deposit less than two months ago,” it said in a media statement yesterday...Kuantan MP Fuziah Salleh has asked Putrajaya and Lynas to reveal if the Australian miner will refine uranium-bearing rare earth ore mined from Malawi in Pahang’s Gebeng industrial area. The Sydney-based company was silent when asked to confirm news the Malawian rare earths deposit was rich in uranium, a highly radioactive material used in nuclear power production.In its company report dated September 6, 2007, Lynas Corp announced it had bought the KGK deposit in Malawi for US$4 million (RM12 million), where it hopes to produce at least 5,000 tonnes of rare earths a year.Lynas said KGK samples have an average of 11 parts per million (ppm) thorium oxide per percentage of rare earths oxide (REO) content.In comparison, ore from its Mount Weld mine in Western Australia has an average of 44ppm thorium oxide per percentage of REO content.

"Rare-earths miner Lynas Corporation Ltd has signed a long-term supply deal with an unnamed customer for rare earths from its advanced materials plant in the central Malaysian state of Pahang."

On March 16, Lynas struck a $20.7 million deal with fellow explorer Forge Resources to develop two of its assets, with Forge sub-leasing the Crown Rare Metals and Swan Phosphate deposits in central Western Australia...The two companies share a chairman in Nicholas Curtis...Lynas also said today it had signed a long term supply agreement with "a major rare earths consumer" for the supply of Mount Weld Rare Earths from the Lynas Advanced Materials Plant (LAMP) in Malaysia.

Strong local opposition to the plant forced the government to take action, with angry protesters calling for construction of the refinery to cease.

FORGE Resources appears to have suffered an unexplained delay in calling a meeting of shareholders to approve controversial resolutions that would enable the company to sublease potentially highly valuable rare metals and phosphate deposits from the rare-earths company Lynas Corporation. The proposal has aroused controversy for a number of reasons, including that Lynas estimates that development of the deposits would cost more than $US1 billion yet Forge is a minnow, and the deal would deliver shares worth between $25 million and $30m to Nic Curtis, who is the non-executive chairman of Forge and also the executive chairman of Lynas. It would also make Curtis the largest Forge shareholder with more than 36 per cent of the capital. The proposed transaction raises questions of conflict of interest.

The proposal needs the approval of both the Lynas and Forge shareholders. Lynas has already called a meeting and claimed that Forge had convened a meeting for May 18 and a copy of the notice of meeting was available from the ASX. However, there has as yet been no disclosure by the ASX of the notice of meeting. What has happened is that Forge lodged the notice and explanatory memorandum with the corporate regulator ASIC on April 15 but is yet to lodge it with the ASX and dispatch it to shareholders. That suggests ASIC may have raised some issues with Forge, perhaps relating to the adequacy of disclosure in the documentation. One glaring omission is that the document does not spell out that Curtis stands to receive a benefit of close to $30m and would become the major shareholder. It merely says that if the transaction with Lynas proceeds as planned the performance shares would convert into ordinary shares. Shareholders have to turn to the fine print in the glossary to find that the performance shares were issued to Curtis.

Lynas, by contrast, noted the value of the performance shares in the explanatory memorandum for its shareholder's meeting. Under the agreement with Lynas, Forge must pay Lynas $20.7m, issue Lynas with 7 million options over Forge shares and make a capital raising of at least $30m...Forge's adviser, Riverstone, of which Curtis and another Forge director Harry Wang are directors, will receive a monthly retainer of $30,000 a $500,000 success fee for a $30m raising, 2.25 per cent of all funds raised for Forge and 500,000 Forge options. Forge contends the agreement with Riverstone was negotiated on an arm's length basis and approval is therefore not being sought under the related-party provisions of the Corporations Act.

Riverstone Advisory (formerly known as Sino Resources Capital Pty Ltd) and Blake, Cassells & Graydon LLP are the financial and legal advisors to Jinchuan respectively in respect of the Arrangement.

Continental is pushing the Xietongmen copper-gold deposit located in the Tibetan Autonomous Region of Tibet.

Kuantan MP Fuziah Salleh had cited an Australian parliamentary report which said the main source of thorium — the radioactive element found in virtually all rare earth deposits — there comes from monazite ore, which contains 8 to 10 per cent thorium. In a statement sent to The Malaysian Insider today, Lynas said the mineral it will source from its mine in Mount Weld will only have 0.17 per cent of thorium.

KUALA LUMPUR, April 18 — Malaysian regulators have denied approving Lynas Corp’s plans to store radioactive waste in its Kuantan rare earth plant indefinitely, insisting the Australian miner will not be allowed to keep the thousands of tonnes it still deems as safe.“Storage onsite will never be a final solution,” regulator Atomic Energy Licensing Board (AELB) director-general Raja Datuk Abdul Aziz Raja Adnan told The Malaysian Insider. He said in an interview that the approved storage area in the plant was only meant to facilitate the refining process as a “temporary area to hold the waste.”...Local residents and environmentalists have countered Lynas’ claims that its raw material has only two per cent of the thorium as Malaysia’s last rare earth project in Bukit Merah, stating that the waste would build up over time, especially as it was reported that Lynas would process 10 times as much ore as the Asian Rare Earth (ARE) plant.

"And now the dogs are beginning to growl over plans by the Lynas Corp boss Nick Curtis to hive off a bit of the prized Mt Weld rare earths deposit into a vehicle called Forge Resources...And they will be asked next month to vote on an apparently trifling transaction: to sell the Crown polymetallic metals and heavy rare earths resource to Forge for $21 million cash...The rationale for the sale is that Crown is "non core" to Lynas's plan to dominate production of rare earths outside China. So a few million in the kitty today is better than nothing. But it was only in February 2007 (corporate presentation slide 29) that Lynas was boasting of Crown's $50 billion worth of polymetallic metal in the ground. Crown could become the company's next major project. Since then, as official mentions of Crown have become fewer and fewer, rare earths prices have risen 570 per cent. Privately, it seems Nick Curtis may still be a true believer. He already has a foot on 15 per cent of Forge, a stake that should grow to 36 per cent worth $30 million were his performance shares to vest as a reward for finding Crown for Forge, and completing a capital raising. And Nick Curtis isn't the only member of the old Lynas crew who still hankers after Crown.

Lynas shareholders haven't heard much from former executive director Harry Wang since he stepped off the board in 2006. But Wang has been a key player on the sidelines. In 2009 he slung together a proposed Chinese investment that would have seen CNMC buy a 52 per cent stake in Lynas at 36 cents a share. Curtis backed the deal, though shareholders weren't enamoured of it and it didn't pass muster with the Foreign Investment Review Board. FIRB's desire to keep the Chinese controlling Australia's richest supply of rare earths has been vindicated since as the press on China's control over the global rare earths market has become almost hysterical. Rare earths aren't as rare as they sound, only in large, easily-mineable deposits. Now Harry Wang and Nick Curtis are back together working for Forge on the acquisition, not just as directors on the Forge board but also as the principals of Riverstone Advisory. Riverstone is better known as Sino Resources. It changed its name a few weeks ago and is the corporate adviser to Forge. It is for shareholders to work out whether Curtis, Wang and the Forge crew are trying to pick up Crown for a ridiculously low price. In light of Lynas's own statements it looks it looks like a once-in-a-lifetime bargain. Then again, "independent expert" Grant Samuel has given the deal the thumbs up - declaring it "fair and reasonable" for Lynas shareholders.

The expert earned no less than $400,000 for this piece of work. And that was without even building a discounted cash flow model. The project costs and revenues were too hard to judge. The primary valuation methodology instead has been to go back and look at what Lynas paid for Mt Weld in 2003 - no more than $22.6 million. Crown is only a small part of Mt Weld. Forge is forking out nearly as much for Crown as Lynas paid for the whole project. This was enough to convince Grant Samuel that the price was fair....The market is now pricing Mt Weld at more than $3 billion..."

Citing an Australian parliamentary report, the Kuantan MP said that the Australian miner’s Kuantan plant will produce up to 2,200 tonnes of radioactive waste per year.Fuziah (picture) said the report shows that the main source of thorium — the radioactive element found in virtually all rare earth deposits — in Australia comes from monazite ore, which contains 8 to 10 per cent thorium.Lynas claims that its ore contains just 0.16 per cent thorium as it is unique and so far found in only three locations around the world...In a statement today, Fuziah said that as Lynas targets production of 22,000 tonnes of rare earth per year, it would be producing between 1,760 and 2,200 tonnes of thorium in Gebeng. She said that by comparison the amang (tin tailings) used in Bukit Merah had just 6 per cent thorium. Reports also state that Lynas will process 10 times the ore that ARE did.

Curtis also insisted that the amount of thorium - the radioactive element found in virtually all rare earth deposits - that will be released from the factory would result in “zero public exposure” due to specialised storage dams it is constructing onsite. Studies say radiation is linked to diseases such as to cancer and congenital birth defects, fears of which has led environmentalists and local residents to protest against the project. They have compared the plant being built by Lynas to the Asian Rare Earth (ARE) plant in Bukit Merah that eventually closed down in 1992 after sustained public protests. Nearly two decades later, the plant is still undergoing a RM303 million cleanup exercise and has been linked to at least eight cases of leukemia, with seven resulting in death.

Local residents and environmentalists have countered Lynas’ claims that its raw material has only two per cent of the thorium — the radioactive element found in virtually all rare earth deposits — by arguing that the waste would build up over time, especially as it was reported that it would process 10 times as much ore as the Bukit Merah refinery. “The waste is a sitting time bomb,” Environmental Protection Society of Malaysia (EPSM) president Nithi Nesadurai had said. Curtis however, said that special storage dams that can hold six years of waste have been built that will cause “zero exposure” to the public.“Two thirds or more is gypsum. There is no issue with respect to it being used as plasterboard and other markets. Malaysia is a net importer of gypsum so we will use it in commercial quantities for sure. This increases our storage (for the radioactie waste) to 24 years,” he explained.Lynas plans to process the iron-bound thorium into a concrete with a thorium concentration of less than 500 parts per million (ppm) for further industrial use but admitted to not having a commercial application yet. “It’s not that Lynas does not have the solution. The solution (storage dams) has been agreed. Now Lynas is going beyond the standards,” he said in the interview, where he stressed repeatedly that Malaysia’s last rare earth project, in Bukit Merah, should never have gone ahead...As it plans to ramp up production to 22,000 tonnes per year of the material that is crucial to high-technology applications such as smartphones, hybrid cars and even bombs, it will mean producing about 120 tonnes of thorium per year.

March 31 2011: Lynas Shares Gain 3% Over Japanese Deal "The agreements also include the allocation of a minimum of 8,500 tonnes per annum of rare earths products to the Japanese market over 10 years, and the joint marketing and distribution of these products. Of the $US325 million to be raised, $US250 million will be used to accelerate the expansion of Lynas' rare earths project in Western Australia to phase two. Regarding the completion of the institutional placement, Lynas said there was strong demand from new and existing Australian and international institutional investors for the shares. The money will be used to fund additional expenditure including preliminary work on the Kangankunde Deposit in Malawi, the purchase of additional equipment, first fill chemicals for the Gebeng plant in Malaysia and general working capital."

AFTER The Age went to press on Tuesday, Kevin Hobgood-Brown, of Riverstone Advisory, who has been guiding the board of Forge Resources in its deal with Lynas Corporation, rang from Beijing. He clarified a couple of points about the structure of the deal, one being that the timing of the adoption of the Riverstone name was coincidental to the mining tenements deal. It had, he said, been done because Sino Resources Capital wanted to distance itself from some market perceptions that it was one of the many arms of the Chinese state. Look out for a rebranding exercise in the next couple of weeks.

Rare earths play Lynas Corp has offloaded non-core assets to Forge Resources in a related-party deal that could see Lynas’s shareholders emerge with almost 15 per cent of Forge...Lynas, which is developing the Mount Weld rare earths project in Western Australia, one of the richest known deposits in the world, said today it had agreed to grant Forge sub-leases over the Swan Deposit and the Crown Deposit at Mt Weld and any minerals from them. Under the deal, Lynas will receive $20.7 million cash, options to acquire 7m Forge shares and royalties over minerals from the sub-leases. In late trade, shares in Lynas jumped almost 5 per cent to $1.84. Lynas shares have been on the up since December when China – which supplies more than 90 per cent of rare earths to the world – again cut its exports of rare earths, giving it a market value of $3.1 billion. If you don’t know, China controls about 95% of the global rare earth market…"

"Across China, rare earth mines have scarred valleys by stripping topsoil and pumping thousands of gallons of acid into streambeds. The environmental costs are palpable here in Baotou, a smoggy mining and steel city in China’s Inner Mongolia, where the air this week had an acrid, faintly metallic taste. Half of the global supply of rare earths comes from a single iron ore mine in the hills north of Baotou. After the iron is removed, the ore is processed at weather-beaten refineries in Baotou’s western outskirts to extract the rare earths minerals. The refineries and the iron ore processing mill pump their waste into an artificial lake here. The reservoir, four square miles and surrounded by an earthen embankment four stories high, holds a dark gray, slightly radioactive sludge laced with toxic chemical compounds. The deadly lake is not far from the Yellow River watershed that supplies drinking water to much of northern China. The reservoir covers an area 100 times the size of the alumina factory waste pond that collapsed this month in Hungary, inundating villages there and killing at least nine people."

{shares purchased on 19 August 2010}. The share purchases provide Lynas with a key 9.44% substantial stake in Northern Uranium.Interestingly, on 9 August, 2010 Northern Uranium announced it had signed a binding letter of intent with Jiangsu Eastern China Non-Ferrous Metals Investment Holding Co., Ltd, an affiliate of East China Exploration & Development. Subject to approval from Northern Uranium shareholders, ECE will invest about A$15.7m in Northern Uranium at a share subscription price of A$0.145 per share. [This agreement was terminated on October 2010 - Anyway, it looks as if we can breathe a sigh of relief. Since then we've had rare earths leader Lynas Corp (LYC) snap up 9.44 per cent of NTU in a move which was seen as the first step to blocking the Chinese, and now Northern Uranium has decided to put the Chinese proposal on hold and, instead, deal its own shareholders back into the mix with a $6.6 million rights issue.].

Northern Uranium owns the Browns Range Rare Earths project which previously formed part of the Gardiner-Tanami Project, but since 2009 has become a focus for the company’s rare earth element (REE) exploration program. The project consists of two granted exploration licenses and one tenement application. The tenements cover an area of 400 km2 within Western Australia, located adjacent to the WA/NT border approximately 150 km southeast of Halls Creek. Results achieved to date by Northern Uranium at its heavy rare earths project would not have escaped Lynas.

"...After exacting studies from the late 1990s through to 2005, Lynas decided the economics of developing a rare earths recovery plant were far cheaper in Malaysia than the original concept in Western Australia, not just based on financial issues but also by moving the processing closer to the global markets...Rare earths is the term given to 15 metallic elements known as the lanthanide series, plus yttrium. They play a key role in green environmental products, from energy efficient compact fluorescent light bulbs (CFLs) to hybrid cars, automotive catalytic converters and wind turbine generators. They are also essential in the development and manufacturing of many modern technological products, from hard disc drives to flat panel displays, iPods and magnetic resonance imaging (MRI) scans."

Rare Earths

From mine to wind turbine: the rare earth cycle

"In 2006, nearly all of the world’s roughly 137,000-ton supply of rare-earth oxides came from China."

Source (Clean Energy's Dirty Little Secret http://www.theatlantic.com/magazine/archive/2009/05/clean-energy-apos-s-dirty-little-secret/7377/)

Lanthanum Oxide	25%
Cerium Oxide	47%
Neodymium Oxide	18%
Praseodymium Oxide	5%
Samarian Oxide	2%
Dysprosium Oxide	0.1%
Europium Oxide	0.4%
Terbium Oxide	0.06%

Lynas Corporation

Raw Earth Miners and Processors

Malyasian Processing Facility already 8 months behind schedule (May 2012)

Care 2 Petition Site: Ban Rare Earth Exports

May 2 2012: Lynas Bid To Gag FMT Save Malaysia Stop Lynas Fails