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1.0 INTRODUCTION1.1 LYNAS COMPANY BACKGROUND
In the 1983, Yilgangi Gold NL was founded by Nicholas Curtis in Sydney, Australia. The company took the name Lynas on 1985 and become publicly listed on Australian Securities Exchange (ASX) on 1986. On the year 2001, Lynas sold off its gold division and become more focused on rare earth. Nicholas Curtis were former executive director at Mcquarie Ltd (company involve in banking and finance and also an Australia company). Lynas company vision: Be the leader in Rare Earths for a sustainable future Lynas company values: Excellence in safety, health and the environment Learn from our differences and be open to change Operate in an honest, candid and transparent manner Inquire and innovate Deliver high quality products through excellence in processes Always respect and contribute to the communities in which we live Respect, support and empower our employees
Lynas main headquarter is situated in Sydney, Australia and its mining plant concentrated at Mount Weld located at western Australia. Lynas also have refining facility under constructions in Kuantan, Pahang, Malaysia. Lynas also own a rare earth deposit in Malawi in Africa. Although, now the deposit ownership is being fought between Michael Saner and Malawi Government.
1.2 RARE EARTHS DIRECT (RED)
Lynas RED Brand Lynas have established and registered internationally their own RED brand (Rare Earths Direct). All Rare Earths product marketed by the company will be sold through this brand and the aim is to make the brand a global benchmark for quality and demonstrated continuity of supply. Lynas RED brand presents three key value propositions: Building a fully integrated supply system from mine to customer; Producing Rare Earths that meet the worlds environmental standards; and Marketing an international brand of guaranteed quality. Lynas development of the RED model ensures maximum profitability across the value chain through the entire business cycle, and creates a robust and enduring enterprise with the ability for further expansion.
1.3 LYNAS ADVANCED MATERIAL PLANT (LAMP)
Gas cleaning system for the Rotary Kilns
The LAMP is being built in Gebeng, Kuantan Pahang, Malaysia due to the readily available industrial infrastructure, including industrial land, sources of gas, water and electricity, re-agents from local suppliers and a port that can manage container, chemical and bulk shipments. The area where the plant is being built also offers much knowledge infrastructure, such as technical and trade skills and chemical industry experience. The government infrastructure is in place and provides accountable regulators, clear legal frameworks and FDI incentives.
Post Treatment Workshops: Precipitation Tanks and Centrifuges
Once the Lynas Advanced Material Plant (LAMP) is operational it is expected to meet over 30% of the global demand for rare earth materials outside of China. The refinery will be the worlds largest rare earth refinery and the first in nearly three decades to be finished outside China, where barely regulated factories have left vast toxic and radioactive waste sites.
1.4 RARE EARTHS
Rare earth The rare earths are a moderately abundant group of 15 metallic elements known as the Lanthanide series (atomic numbers 57 through to 71) plus Yttrium (39). Although Scandium (atomic number 21) is not a Rare Earth element, it is commonly included with the Lanthanides because of its similar properties. The 15 lanthanides are represented by the single square of lanthanum in the main part of the periodic table and listed in a separate sub group below the main groupings. In the periodic table:-
Periodic Table They range in crustal abundance from cerium, the most abundant, at 60 parts per million, which is in fact more abundant than nickel or copper, to thulium and lutetium, the least abundant Rare Earth element at about 0.5 parts per million. Rare Earths are not found as free metals in the earths crust, rather within a mixed cocktail of Rare Earth elements that need to be separated for their individual or combined4
commercial use. Despite their name, Rare Earths are relatively abundant in the earths crust, however are often of low quality and rarely presented in economic concentration. The first point to note about Rare Earths prices is that there is significant variance in the relative market value for selected Rare Earths oxides. Secondly, the price of Rare Earths depends on the purity level, which is largely set by the specifications for each application.
1.5 USES OF RARE EARTHS
Electronic devices Rare Earth is widely used in electronic processing. In many applications, the use of Rare Earth is profitable because of their low toxicity rate. For example, most common batteries contain cadmium (Cd) or lead.
HYBRID CAR BATTERIES
Every hybrid-electric and electric vehicle has a large battery. Each battery is made using several pounds of rare earth compounds. The use of electric vehicles is expected to increase rapidly, making them an important source of growth for rare earths.
MAGNETS Rare earth magnets are widely used in wind turbines. Some large turbines require around two tonnes of rare earth magnets. These magnets are very strong and make the turbines highly efficient. Rare earth magnets are used in turbines and generators in many alternative energy applications.
MOBILE PHONES, LAPTOPS
Rechargeable batteries used in mobile phone and portable computers require rare earths. Rare earths were the key to smaller, more efficient battery technology.
2.0 CURRENT ISSUES CONCERNING LYNAS ADVANCED MATERIAL PLANT (LAMP) AT GEBENG KUANTAN, PAHANG2.1 Advantage of lynas advanced material plant (LAMP)
2.1.1 Good in environment and efficient of energy Back in September 11 we were shocked about a mining-related project in Malaysia being proposed by the Australian rare-earths miner, Lynas Corporation Ltd. Although we already know that the technology that we have in our country still not at high level yet. Beside that not only technology that we have we also lack of an exporter in this field. But what we must do is ,weve been following events since then and there continues to be a very well organised community (and political) effort to oppose the Lynas Advanced Materials Plant (LAMP). Actually when some observation that were made by some exporter , they are say that the LAMP is being built in Malaysia due to the readily available industrial infrastructure, including industrial land, sources of gas, water and electricity, re-agents from local suppliers and a port that can manage container, chemical and bulk shipments. The area where the plant is being built also offers much knowledge infrastructure, such as technical and trade skills and chemical industry experience. The government infrastructure is in place and provides accountable regulators, clear legal frameworks and Foreign Direct Investment FDI incentives. This corporation choose Malaysia as an area to build this factory because Malaysia has an advantage in attracting downstream activities in the rare earth industry, compared with China because it has a legal system and intellectual property are excellent, according to Executive Vice President Corporate Communications Strategy and Lynas Corporation Ltd Dr Matthew James. Beside that when he make a comparison with a China we can see ,at the same time, the cost advantages in laborcost, energy and chemicals that have made Chinano longer applicable and Malaysiais seen as a highly competitive location due to high cost increases that occurred in China over the past decade. From this statement we can conclude that Malaysia still have an expert that can confidently handle this project. This project already make an operation since year 2008 and what we can see it do not faced any problem until now , 2012 but when they are already know about the project then the project has come up against opposition from local groups. The first thing that they are worry if quality and condition of this factory is in good condition so they accuse Lynas of cost cutting7
practices in building the refinery. The accusations are predominantly based on a report by the New York Times which claims that there are cracks in the containment tanks and Lynas is using lesser quality materials such as plain steel instead of stainless for its piping, (Bradsher, 2011). Local residents are concerned that radioactive waste from the facility will put them at risk and potentially leave a costly legacy. Locals fear a repeat of the toxic wasteland left behind by the Mitsubishi Chemical plant in Bukit Merah which is now blamed for birth defects and cancers such as leukaemia. Lynas claims that the radioactive thorium content of their rare earths oxide (REO) is very low and that the plant wont pose a risk. Despite this, a recent review by the International Atomic Energy Agency recommended that Lynas develop a more thorough waste management plan. The plan was due by August 2011 and as far as were aware, has not yet been released. In addition the plant that worth RM700 million is reportedly struggling with the controversy, which was triggered by allegations that it will produce harmful radiation that leads people to visit the International Atomic Energy Agency (IAEA) from 29 May to 3 June. Said Bernama in his report, the IAEA confirmed that the plant, when completed later this year, to secure and fully compliant with international standards, but the license pre-operation still subject to approval from regulators. This is proved that the assumption of local citizen about Lynas plant is totally wrong, which is they are think LAMP is a nuclear plant. So what we can say is this factory is safe and not only that it also can contrib