LYNAS: REVIEW OUR OPS FAIRLY
Malaysia will lose RM66m in investments if company is closed down, says CEO
MALAYSIA stands to lose about RM66 million in investments this year while putting 650 local jobs at stake if Lynas Malaysia Sdn Bhd is closed down, said Lynas Corp chief executive officer and managing director Amanda Lacaze.
She said the government needed to review the company’s operations with fairness, objectivity and transparency.
“To date, we have invested close to RM3 billion in capital and spent about RM500 million annually in Malaysia,” said Lacaze, here, yesterday.
Lynas Malaysia has been producing high quality rare earth materials in Kuantan under extensive licensing conditions since September 2014.
Lacaze said Lynas Malaysia required time to adjust to the changes in the regulations.
“Our next project this year will cost about RM66 million to improve our operations and allow us to increase production,” she added.
Lacaze said Lynas had been in talks with partners in Hong Kong to promote Malaysia as a downstream operations destination.
However, the initiative was put on hold due to the government’s decision to review the company’s operations.
She said Lynas bought about 80 per cent of its supplies locally and this indirectly created thousands of job opportunities.
Lacaze said Lynas could relocate its local operations but it was always the case of effort, time and money.
“As an organisation, we have proven to be able to solve a lot of problems. We have built a lot of intellectual properties in this business, so we could do that.
“We can certainly reorganise our assets and we do have alternatives,” she said.
Lacaze said the group would not consider exiting its operations in Malaysia, adding that Lynas was an excellent corporate citizen.
“The government may change its policy. What we ask is that we are given time to adapt to it.
“We can generally adapt and we certainly do everything that we can to meet the requirements of the government,” she said, adding that the operating licence was due to be renewed by September next year.