Abstract:

This case study illustrates the issues regarding Lynas Advanced Material Plant. The Lynas Corporation Ltd of Australia first looked at China before settling on Pahang, Malaysia to establish its rare earth processing plant. Rare earth is a slightly radioactive material. Despite reassurances by the company and the State and Federal governments that the Lynas Advanced Material Plant is not dangerous to the employees and the community, some NGOs and the public are still skeptical. They say the benefits derived from investment may not outweigh the risks. The case presents a balanced perspective on both the benefits and risks of this project.

DISCUSSION QUESTIONS

1. What factors should a company like Lynas consider when locating its operations abroad? Why?

2. What factors should the local authorities like the Kuantan City Council, the State government and the Federal government consider before approving the license to a company like Lynas to operate? Why?

3. Were the objections by the NGOs and local population justified with regard to Lynas operations in Kuantan? Why?

4. If you were the CEO of Lynas (LAMP), what would you do to overcome the objections and protests by the local population?

5. Based on the circular economy strategies, discuss how the authority can contribute to reduce this environmental issues.