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Mining Corporations and Pollution Changes: Lynas Corporation in

Malaysia
Ailin Winoto 20168035
Australias Lynas Corporation is one of the biggest company in the extraction
of rare-earth elements such as wind turbines, jet fighters, LCD monitors and
other computer components. Lynas Corporation established its refining plant
in Malaysia and the government supported this huge investment by giving
12-year tax exemption. However, this mining company had many issues
relating to environmental impact such as the toxic waste and the
radioactivity of the ores. The truth was that Lynas in Australia got
authorization licenses consisted of the waste disposal license, the ore import
license, and the temporary operating license. Thus, Lynas has committed to
CSR standards and will implement all recommendations for managing the
plant in a sustainable and environmentally friendly.
Based on my opinion, Lynas Corporation takes some comparative
advantages from Malaysia, such as the availability of cheap skilled and
unskilled labor, chemicals, and fresh water. However, the main reason is the
government do not prohibit the processing of rare earth. The Malaysian
government do not concern about the people of Malaysia. They only
represent the interest of big business. Thus why Lynas took that advantage
for establishing its plant in Malaysia. This advantage makes Lynas neglect its
corporate social responsibility in order to maximize their profits. What Lynas
should understand is that Lynas need to recognize that their every activity is
linked to thousand other aspects of environment and therefore their
corporate social responsibility must be to prioritize and implement
comprehensive organizational strategy in order to stay competitive. Lynas
should first and foremost attempt to limit its impact on the environment in
the long run. There are so many environmental effects. The first one is the
health effects of radiation, which can lead to cancer. Based on research,
there was an increasing amount of bone cancer in Malaysia due to the
thorium. Second, Lynas has a serious waste problem. It has estimated that
Lynas would have a total waste of 220,000 tonnes to be disposed every year.
Third, Lynas will use and pollute 500 tonnes of clean water every hour in
which could make the sea life died.
In addition, Lynas should understand that what stakeholders find nowadays
are not only big profit but also values for social society. If Lynas was found to
be dangerous on unethical, society will attempt to throw Lynas away. It
cound be disadvantageous for Lynas as if Lynas losses their stakeholders

such as shareholders, employees and customers. Thus, Lynas should not


avoid their corporate social responsibility at the expense of safety
implementation and should balance their profit maximization and their social
responsibility. Lynas should need to recognize and acknowledge their social
responsibility and incorporate them in their management objectives in order
to achieve sustainable company growth.
In conclusion, Lynas should try to minimize their wastes, and recycle toxic
waste. In addition, Malaysian government should prioritize the protection of
Malaysian environmental and public health interests and they should close
temporarily Lynas plant in Malaysia until Lynas put best practice
environmental protection standards and conditions and come up with the
best acceptable solution for the plants radioactive waste disposal.