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PROTEST MEMORENDUM

CONSTRUCTIONS AND OPERATIONS OF LYNAS CORPORATION PLANT IN GEBENG, KUANTAN

Date 31st MAY 2011

By: PEOPLE UNDER THE STATE ASSEMBLY OF BESERAH KUANTAN, PAHANG DARUL MAKMUR (VIA THE STATE ASSEMBLYMAN OF BESERAH)

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Member of Legislative Assembly Beserah c / o The Task Force Anti-Rare Earth (Badar) Community Service Center (DUN) Beserah, No. 5, Lorong balok Darat 18, Balok, 26100 Kuantan, Pahang Darul Makmur Your Reference: MITI / Our Reference: BADAR/StopLynas/01-2011 Date: 28 May 2011

INTERNATIONAL ADVISORY PANEL (IAP), International Atomic Energy Advisory Through, Ministry of International Trade and Industry, Jalan Dungun, 51000 Kuala Lumpur. Sir, RE: PUBLIC SESSION PRESENTATION BY THE STAKEHOLDERS OF THE LYNAS PROJECT Referring to the above, as a Member of the State Legislative Assembly (Assemblyman) for Beserah representing the residents within my constituency and together with the Task Force Anti-Rare Earth Refinery Plan (Badar) wish to state our firm stance on the issue of the construction and operation of the plant by the Lynas Corporation : 1. We firmly reject the construction and operation of Lynas Corporation plant in our area and also in any area in the state of Pahang or in Malaysia; 2. We urge the undergoing construction work right now to be stopped immediately; 3. We urge the Lynas Coporation to stop any activities and move out from Malaysia immediately. With due respect to the members of the IAP (International Advisory Panel) at the invitation of the Malaysian government, we insisted that the people here do not need any advice from the body that will promote the construction and operation activities related to nuclear / radiation near our home. We demand our rights as residents and human being to enjoy secure and save life without any real threat. We believe our rights that are recognized by the international conventions must be respected by all parties.

Stop the Lynas, Save Malaysia Sincerely, .......................................... (YB Tuan Syed Mohammad Lonnik) Assemblyman Beserah

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WHY ARE WE AGAINST THE CONSTRUCTION AND OPERATION LYNAS IN GEBENG? 1. THE PLANT IS TOO CLOSE TO THE RESIDENTIAL AREA Fact 1:
Lynas plant is located just 3 kilometres from the residential area with the population density of about 20,000 people and about 700,000 people within a radius of 30 kilometers (from the town of Kuantan to Kemaman).

Fact 2:
Lynas is also adjacent to the other plant (approximately 1 kilometer) , such as BASF Petronas, Polyplastics, Eastman, Flexys, Kaneka, BP Chemicals, MTBE and several other plant that have over 3,000 employees.

Fact 3:
Lynas plant is also located about 2 kilometers from the Maritime Enforcement Agency Training Center Project Phase 1 and the Palm Oil Industrial Cluster, both of which the constructions works are in progress. In addition, there is also an industrial training institute housing about 2,000 students at every six months.

Our rejection conclusion is:

The distance of the Lynas radioactive waste producing plant is contrary to the conditions set by the government of Australia which must have a minimum distance of 35 kilometers from the nearest residential. We are exposed for 24 hours a day, 7 days a week, 365 days a year to the activities and operations involving radiation and hazardous emission produced by Lynas. In fact, if there will be any problems such as leaking or emissions or waste, the lives over 700,000 people were directly at stake. We understand the naturally occurring radiation which we have no choice except to accept those to happen. However, we are not willing to take the risk by adding on the man-made radiation to the people and the environment like what Lynas will do.

2. LOCAL RESIDENTS ARE NOT CONSULTED Fact 1:

Initially, this project does not disclose the whole report of the EIA (Environmental Impact Assessment) to the public. We can only see the Executive Summary in the Department of Environmental web site for public reference. Not everybody is able to find the information as the internet facilities is limited by subscription only. The item related to the management and storage of radioactive waste is not emphasized in details.

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It falls under the jurisdiction of the AELB which decide to allow them to landfill their radioactive waste. With the existing industries around the area that producing the nonradioactive waste must dispose their waste to the prescribed premise with high cost, so, why Lynas radioactive waste can be allowed to landfill at their own premise?

Fact 2:
No negotiations or 'Public Consultation' on building the radioactive related plant with the people. The project is approved in 2008 but an explanation to the public was only made in 2009. The government initially precipitated that it is a non-radioactive plant but retracted the statement after being objected by the people.

Fact 3:

The government informed the public that this project is clean and safe. But on May 21, 2011, Lynas has been revealed in the Internet portal, the Malaysian Insider that they have to pay a sum of money to the government as collateral in the event of any damage to the environment they are operating. This exposure showed a serious threat to the environment from operations at the Lynas, and it is noticed by the government but does not act to inform the people on the matter.

Our rejection conclusion is:

Information provided to the public by government agencies is in conflicting and create confusion. The Malaysian Nuclear Agency get all the information about radiation levels and the results or data from the Lynas without doing their own analysis. Lynas, as the owner would have to provide good data and the results for approval. Comparing the level of natural ocurring radiation and radiation from other devices such as mobile phone, highway, etc with the radioactive waste produced by Lynas is completely unacceptable. Lynas waste has no benefit at all to the people and the environment, yet the residents will have to deal with the waste for many years. When a local internet news stated that "Lynas has paid the government to cover the waste" makes people more concern related to the integrity of the Lynas and the government in the disclosure of accurate information. Citizens are more concerned with the ability of law enforcement of existing institutions to ensure that Lynas are 100% in compliance. In view of the latest edition of the public complaints about smoke emissions, dust suspended in the air, water pollution, etc. by the industries in the area, the government agencies are not able to deal with monitoring and enforcement of the law, they rely on the public to file complaints. How will the government agencies monitor the radioactive waste when the public

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would not know of its existence (people can not see, smell or hear the radiation)to file the complaint?

3. WE DO NOT NEED ADDITIONAL RADIATION FOR THE SAKE OF GETTING FOREIGN INVESTMENT Fact 1:
People are confused by the conflicting facts given by the government: a. In the early stage, they said the waste does not contain radioactive; b. Then in they said it contains low levels of radiation; c. Then they said the radiation emitted is not dangerous. People are being forced to accept the fact that radiation is not dangerous and available anywhere, like the use of X-ray and the use of mobile phones.

Fact 2:
Lynas Corporation is expected to generate RM 8 billion a year after two years of operation, they provide job opportunities for 350 people only but Lynas will enjoy tax holiday for 12 years from the government. Therefore, there is no economic gain for the people as well as the government from this investment, yet we have to manage the radioactive waste after they leave. Lynas Corporation or LAMP Gebeng as described by their C.E.O, will result in the ratio of Thorium 55:10,000 metric tons per year of 22,000 'rare earth oxide. This means that in a year's budget Thorium waste that will be produced is 121 metric tons equivalent to 121 trucks loaded with capacity of 1 ton! With tax relief over 12 years of operation, LAMP will produce hazardous waste of 1,452 metric tons of which would be an absolute burden to be deal by the people if Lynas decided to cease operations here.

Our rejection conclusion is:

Government should not make an excuse that the financial benefits to be gained from the controversial and dangerous project. Generally, it is a very minimum financial benefit obtained by people and the State from this project. It is not worth to grant profit to the Lynas Corpration and the number of 350 employees and few contractors over the lives of 700,000 people. The outcome will destroy the environment and lives permanently.

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4. THREAT TO LOCAL COMMUNITY SOURCE OF INCOME Fact 1:

There are three main economic sectors for the local who leave in the range of 5-10 kilometers from the Lynas plant i.e; fishing, tourism and SMEs (Small Medium Enterprise). The fisheries sector includes the small fishermen who live along the coastal of Beserah, sungai Ular, Cherating, Kuantan and also in Kemaman. The radioactive waste coming from the plant will pollute the river and the ocean nearby which will impact fisherman life. Tourism sector include range of hotels and chalets along the coast of Beserah, Batu Hitam, Sungai Ular, Cherating, Teluk Mak Nik , Teluk Cempedak up to the Teluk Kalong in Kemaman. Small and Medium Enterprise (SME) involves in making the fish crackers, dried fish, grilled fish and others related fishery activities.

Fact 2:
Real estate and housing industry is also exposed to the risk of losing markets due to the operation of this harmful radiation plant. There are dozens of housing estates which are currently being built near the Gebeng Industrial Area facing with dropping in property values due to the refusal of the buyers and potential buyers to take risks that will emerge.

Our rejection of the conclusion is:

The three fisheries, tourism and small and medium enterprises (SMEs) sectors are directly affected to the risk of contamination by the Lynas harmful waste. These three sectors are depending on the source from the Balok River which will eventually flow to the coastal. Lynas will drain out of the discharge into the Balok River and this will expose the risk of contamination of Thorium and other acids and chemicals used in the process of decomposition 'Rare Earth'. Distribution of fresh fish from Balok, Beserah and sungai Ular currently are not only limited in Kuantan but to the whole of Peninsular Malaysia. Not only fishermen would lose their income and even fresh fish lover will also be a victim of radiation poisoning from their fish. Similarly, all the sellers and buyers of food-related, such as crackers and dried fish

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will experience the same scenerio. Hotel sectors will be affected with a big impact if the plant is permitted to operate. Foreign tourist revenue are expected to be reduced drastically due to the issues because they are better informed on the dangers of radioactive waste compare to the the local people. All these issues will impact directly on the economy to the local people in particular and Malaysia in general.

FINAL CONCLUSION
We the residence of Kuantan firmly reject the construction and operation of the Lynas Corporation plant in Gebeng, Kuantan. By excising our right to protect our own lives, in carrying out our responsibility to provide a save living place to our future generations and by fulfilling our obligation to protect the environment we are living in, we therefore call upon you as the experts to help us to stop Lynas. Even though, with due respect, we insist on the IAP of the IAEA is not the best body to determine whether this project should be continued or not, we are still looking at you as a human being who also have the same responsibility like us. We certainly hope that the IAP from IAEA will not the means of certain quarters to achieve their monetary gain without considering the qualitative factors as mentioned above. IAP from the IAEA should avoid the cause of the destruction of our lives and the environment in Gebeng and Malaysia, and be held responsible by the future generations if Lynas is allowed to continue their operations. Lynas has to stop the operation, for our children, for the life of the future.

Stop Lynas, Save Malaysia