How does Sept 2 licence renewal hinge on removing WLP?

Question

Accepted Answer

Lynas's Licence Renewal Contingent on WLP Waste Removal from Malaysia

Lynas Corporation's licence renewal, due on September 2, 2019, is directly contingent on meeting a precondition set by the Malaysian Ministry of Energy, Science, Technology, Environment and Climate. This precondition mandates the removal of accumulated Water Leached Purification Residue (WLP) waste, which contains radioactive materials, from Malaysia. The existing temporary storage licence for this WLP expires on the same date as the licence renewal, creating a critical deadline for the company.
Precondition for Licence Renewal

The Ministry of Energy, Science, Technology, Environment and Climate has stipulated two preconditions for Lynas concerning future permit and licence renewals. A primary condition is the requirement to export the Water Leached Purification Residue (WLP) accumulated at its facility. This residue, known to contain radioactive elements, must be removed from Malaysian soil for the company to proceed with licence renewals.
Expiry of Temporary Storage Licence

The current temporary storage licence that permits Lynas to keep the WLP residue on-site expires on September 2, 2019. This date coincides precisely with the due date for the renewal of Lynas's operational licence. The expiration of the storage permit signifies that continued on-site storage beyond this date, without the waste being removed as mandated, would be in violation of regulations.
Lynas's Appeal Against the Condition

Lynas has formally appealed the government's pre-condition to clear its waste stockpile, indicating a challenge in meeting this requirement by the specified deadline. The company has expressed a "reasonable confidence" that a resolution will be found, suggesting ongoing discussions and negotiations with the Malaysian authorities. Despite the appeal, the precondition remains a significant hurdle for the licence renewal process.
Potential Impact on Operations

The company's auditors have identified "material uncertainty" regarding Lynas's ability to secure a licence to continue operating in Malaysia beyond September 2, 2019, if the WLP removal condition is not met. This uncertainty poses a substantial risk to the future of the entire company, as the auditors noted that failure to gain a renewed licence could impact the group's ability to continue as a going concern.

Reading history

Hide →

This history is cleared when the page is closed.

How does Sept 2 licence renewal hinge on removing WLP?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends