Syed Jaymal Zahiid | September 28, 2011
According to Kuantan MP Fuziah Salleh, Australian mining giant Lynas is attempting to mislead investors.
KUALA LUMPUR: The anti-Lynas movement’s leading lady Fuziah Salleh claimed that the Australian mining giant is defrauding investors.
In view of this, she lodged a formal complaint with the Australian Securities and Investments Commission.
In the letter dated Sept 27, the Kuantan MP said there were contradictions in Lynas’ Q2 report on its Lynas Advanced Materials Plant (LAMP) which she regarded “as an act of corporate fraud to mislead the investing public”.
In her letter, Fuziah said that Lynas had, in its Q2 report for the period ending June 30, 2011, had outlined strategies to satisfy the 11 IAEA recommendations, including claiming to have submitted the permanent waste disposal plan to AELB on July 18, 2011, and the remaining documents in August 2011.
Fuziah, when contacted, however said none of the residents or the affected parties have been informed of Lynas’ long-term waste disposal plan.
The assurance that the Australian mining giant produces a solid waste management plan to address concerns of radioactive leaks was the first recommendation made by the International Atomic Energy Agency (IAEA) in its review of the LAMP.
Lynas claimed to have submitted the permanent waste disposal plan to the Malaysian regulatory agency, the Atomic Energy Licensing Board (AELB), only on July 18, 2011.
It added that the safety case work was underway and was planned to be submitted with updated Radiation Impact Assessment report to the AELB in August.
Right to correct information
Fuziah said the silence on Lynas’ part over its long-term waste management plan was a direct attempt to mislead investors over its failure to follow recommendation 10 of the IAEA.
The recommendation stated that Lynas, as the party responsible for the safety of the proposed rare earth processing facility, should be urged to intensify its communication with interested and affected parties.
This was to demonstrate how it would ensure the radiological safety of the public and the environment.
“But until now none of us have seen the plan or have been informed when Lynas is supposed to intensify communication with residents or affected parties,” Fuziah told FMT.
She added that the investing public had the right to correct information to facilitate their decision making.
“Therefore, we urge the Australian Securities and Investments Commission to compel Lynas to issue a correction to its quarterly report or to disclose all submitted documents to the public,” she said.