Lynas CEO Nick Curtis' letter of invitation to MP Fuziah Salleh for a discussion on the issues and concerns the Kuantan community has on LAMP

1. 21 June 2011
MP Yang Berhormat Puan Hajah Fuziah binti Salleh
Pusat Khidmat Parlimen Kuantan A137
Tingkat 1, Jalan Beserah 25300
Kuantan, Pahang
MALAYSIA
Dear Yang Berhormat Puan Hajah Fuziah binti Salleh
I have been carefully following your concerns and public comments about Lynas. I have felt
challenged and confronted by some of your statements, as they do not fit with the
perception I have of myself, or my company’s values.
I strongly believe Lynas has a role to play as a responsible and important member of the
community, with an obligation to create shared value - not just in conventional economic
terms, but in terms of long term, sustainable improvements to society.
I believe that in creating a new global hub in Kuantan for responsible processing of rare
earth elements - essential ingredients for the sustainable future we all desire – we will
deliver substantial benefits to the people of Kuantan. But clearly I have failed to convey
this message effectively.
I have heard the community’s concerns and calls for greater clarity and transparency.
At Lynas, we genuinely believe that we acted responsibly because we complied with the law,
consulted with a range of stakeholders, and set ourselves the goal of establishing new
benchmarks for safety and environmental performance in rare earths processing.
Nevertheless, we are conscious that the burden of proof is on Lynas to demonstrate the
responsible, safe management of waste from our operations. We are open to increasing our
transparency, so that you and others may have all the information you require to hold us
accountable on this issue.
Through community briefings, media interviews and a comprehensive presence on social
media, Lynas has tried to give the public factual information to help build awareness that
our raw materials and residues are safe, non-toxic and non-hazardous. Our information is
broad, and covers the range of plant residue materials and environmental management
initiatives.
However, it is clear that your explicit concern is about the waste stream that contains
thorium. And in hindsight, it may have been better if we had talked more widely and
specifically about our waste storage plans for the residue material containing low-levels of
thorium and associated low-levels of radiation.
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2. Lynas began its education outreach effort to local officials and the community in 2008. But
it seems that some, including yourself, feel that it was not a credible engagement process
and that is why you chose not to attend our past public briefings.
Lynas welcomes further discussion and I would like to understand where you think the
opportunities for constructive community engagement may lie. The upcoming report from
the IAEA may be the basis for a deeper dialogue with Kuantan residents and community
leaders about the Lynas Advanced Materials Plant, the impact of rare earths processing, and
how we will responsibly mitigate and manage any associated risks.
At the same time, I have a growing sense of unease about the more exaggerated claims
made by extreme and vocal opponents of our plant, and how they are generating
speculative fear, uncertainty and unrest amongst residents and the public.
A calm and constructive conversation is now urgent.
On Friday evening, 17 June 2011, two Molotov cocktails were thrown at the Kuantan
residence of LAMP Construction Manager, Mr. Bill Morris. A sign “Go Back to Australia
Lynas” was painted on Bill’s front fence. Fortunately Bill was unhurt. Together, I’m sure
you will join me in the call that whilst vocal opposition to our plant may be fair, violence is
unacceptable. Safety of individuals and the Kuantan community must come first.
At Lynas, we each hold personal safety as a core commitment. The safety of our employees
and the communities in which we operate will always take precedence over production. Our
LAMP has been designed with this core principle in mind.
Lynas will engage with all stakeholders, including its opponents, in meaningful dialogue on
the substantive issues. Through open engagement and positive interaction with the
community, Lynas will earn the trust required to sustain a license to operate.
Lynas seeks to reach out, listen to different perspectives and build some trust with those
who are concerned about the safety of the LAMP.
I understand that feelings currently run high and that speculative and unsubstantiated
claims create uncertainty and doubt. Amongst the voice of opposition, I sincerely hope
there is a common respect for the facts.
We appreciate your recent correction via Twitter that Lynas had obtained approval to build
a refinery in Australia. This correction on the public record is an important step forward
from our point of view. The less incorrect information there is out there, the more we can
focus on the issues that truly concern the community and other anti-Lynas groups, to see if
we can resolve their concerns.
Lynas did have approval to build its processing plant in Australia, but chose to build in
Malaysia where the highest international standards for rare earths processing exist today.
We chose Malaysia for its transparent and rigid regulatory environment, and we intend
meeting and exceeding the high bar that your nation sets for the industry.
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3. We would appreciate your help on correcting the suggestion that that the Lynas Advanced
Materials Plant will adopt Chinese standards in its construction and operation, and as a
consequence, will not adhere to international standards. This is not true. The downside of
such false claims is that a perception could grow that we are not willing to be held to
account to the highest standards. We’d appreciate your help in ensuring the facts are
known about the commitments we have made.
In an open letter to Mentri Besar Datuk Seri Adnan Yaakob, on 2 April 2011, you requested
that an international panel be appointed to review and provide external expertise and
consultation on the safety of the LAMP.
On 22 April 2011, Minister YB Dato' Sri Mustapa Mohamad appointed an esteemed panel of
global experts in the field of radiation, health and safety. This panel brings together the
highest level of expertise and scrutiny to the project. The International Atomic Energy
Agency (IAEA), represented on the panel, is unrivalled in its understanding of radiation
risks, process modeling, and health and environmental impacts.
To ensure that this internationally-recognized group of professionals play the role you hope
they will, I note you have been calling for them to demonstrate impartiality and
independence.
We support this call.
We also support the Malaysian Government’s commitment to the health and safety of its
people and the environment as the top priority. We will commit to fulfilling the
recommendations of the independent review findings. We hope that in doing so, Lynas may
play a role in helping Malaysia realize its stated ambition for the Rakyat through high-
income, inclusiveness and sustainability.
Rare Earths play a vital role in green technology, and Malaysia has the opportunity to be at
the forefront of the industry. With the Lynas Advanced Materials Plant, Malaysia will play an
indispensible role in helping to build energy efficient light bulbs, hybrid cars and wind
turbine engines for renewable power generation - technologies we’ve come to embrace and
rely upon as green, sustainable solutions for the future.
Once again let me state that I would appreciate the opportunity to meet with you personally
as soon as possible, so that we may constructively engage on the issues face to face.
Please let me know your availability so that we may arrange a time that it is mutually
convenient.
Yours sincerely
Nicholas Curtis AM
Executive Chairman
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