Kuala Lumpur, March 6, 2026, 14:39 MYT
- Malaysia’s trade ministry made it clear US promises on licensing certainty don’t trump the technical requirements imposed on Lynas.
- Lynas announced its Malaysian operating licence has been renewed for 10 years, effective March 3.
- An environmental group is calling on Malaysia to return radioactive waste to Australia.
Malaysia’s trade ministry said the new 10-year licence granted to Lynas Rare Earths won’t alter any of the technical conditions already imposed on its local operations, despite commitments under a reciprocal trade statement and a critical minerals memorandum signed with the United States.
It’s a pressing concern in Kuala Lumpur: the government is seeking foreign investment and partners in critical minerals, yet public outrage continues over radioactive by-products at Lynas’ Malaysian processing site.
The Ministry of Investment, Trade and Industry (MITI) told the upper house in a written response that its critical minerals MoU with the United States includes working together on “good regulatory practices,” like making it easier to obtain permits and licences. Still, the ministry stressed the government retains full authority to enforce technical requirements.
MITI said discussions are still in the early phase between Khazanah Nasional, the state investor, and Chinese firms over developing Malaysia’s rare earth sector. No final deals have been reached.
The ministry said there’s still no deal in place for transferring heavy rare earth element separation technology—details like scope and timing remain unsettled. That highlights just how tough it is for countries trying to set up supply chains that don’t rely on China.
MITI noted that, right now, commercial-scale HREE production happens solely at processing plants in China and at Lynas’s facility in Kuantan.
Australia-listed Lynas said this week it got confirmation from Malaysia’s Department of Atomic Energy that its Lynas Malaysia operating licence has been renewed for 10 years starting March 3, with the official licence to follow “in due course”. CEO Amanda Lacaze pointed to the decade-long renewal as providing “greater investment certainty” to customers and supply chain partners.
Malaysia’s science minister says the new policy bars any new permanent disposal site for radioactive waste, requiring Water Leach Purification (WLP) residue — the by-product from processing — to stop by 2031. All existing WLP must be dealt with using approved approaches.
Still, political tensions remain. Sahabat Alam Malaysia, an environmental NGO, labeled the licence renewal a “smokescreen,” arguing that shipping radioactive waste back to Australia remains “the best and most effective option.” The group warned that Malaysia risks a long-term burden if the promised treatment technology fails to deliver at scale. foe-malaysia.org
