Setting the record straight on radiation levels, approvals and materials.

1. Background Information
Context
The people at Lynas share a strong set of manner, as well as always respecting and
contributing to the communities in which we live and work.
Lynas believes recent public statements made about the Lynas Rare Earths Concentration
Plant at Mount Weld, Western Australia and the Lynas Advanced Material Plant in Malaysia
are factually incorrect, statements which are taken out of context, and statements which are
misleading to the public.
Approvals and Regulations
The approvals for the transport of Mount Weld Rare Earths concentrate were granted by the
EPA in June 2009. The company is confident that our processes and procedures will meet all
required regulations and are completely safe.
The Mount Weld Rare Earths concentrate is:
 Not classified as Dangerous Goods by the criteria of the Australian Dangerous Goods
Code (ADG Code) for transport by road or rail.
 Not classified as a Dangerous Goods for transport by sea (International Maritime
Dangerous Goods Code 2006).
The Mount Weld Rare Earths concentrate is not considered a radioactive material, the levels
of the naturally occurring thorium are so low in the concentrate that the material is:
 Not regulated for transport as classified by the criteria of the Australian Code of
Practice for the Safe Transport of Radioactive Material 2001.
 Not regulated for transport as classified by the International Atomic Energy Agency
(IAEA), Safe Transport of Radioactive Material regulations.
Lynas received approvals to process the Rare Earths concentrate in Australia, China and in
both Terengganu and Pahang, Malaysia:
 Lynas initially obtained all approvals for this project in Australia. However, there was
no suitable, available location with the required infrastructure: access to high-grade
industrial chemicals, gas, electricity and a plentiful supply of water for the plant.
 Lynas had also obtained approvals for this plant in China. However, the Chinese
government imposed export limits on all final products as well as imposing export
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2. taxes. Lynas was unwilling to invest in China and then have the export of final
products controlled by the Chinese government.
 Ultimately Lynas identified Malaysia as the preferred location for this plant. Lynas
completed an Environmental Impact assessment and Qualitative Risk Assessment for
the Gebeng Industrial Area location before obtained all approvals required by the
authorities for this location.
All materials are not the same
Lynas Rare Earths concentrate has been compared to Magellan Metals lead carbonate
concentrate.
They are like chalk and cheese, there can be no comparison between the two. Magellan’s lead
carbonate concentrate is a toxic material is classified as a dangerous good. The Lynas Rare
Earths concentrate is not classified as a dangerous good. The ore and concentrate are not
subjected to chemical or thermal processing of any kind in Australia, the naturally occurring
Rare Earths ore is physically concentrated at Mount Weld.
Lynas Rare Earths concentrate has been compared to the raw material processed at the Asian
Rare Earth Plant in Bukit Merah. The Asian Rare Earth plant used tin mining tailings as its
raw material. This contained high levels of thorium, which was the source of high levels of
radiation, and ultimately this plant’s closure.
Under current regulations, the raw material processed at Bukit Merah could not be processed
in Australia, Malaysia, nor China today. By contrast, the Lynas raw material contains naturally
low levels of thorium. Fifty (50) times lower than the tin tailings used by Asian Rare Earth.
This is due to the unique geology of Mount Weld and associated mineral deposits. · By all
international standards, the Lynas raw material is classified as safe, non-toxic and non-
hazardous.
Radiation
The levels of radioactivity are so low that the concentrate is not classified as radioactive by
the International Atomic Energy Agency (IAEA). It is classed as non-hazardous according to
criteria of ASCC (Australian Safety and Compensation Council).
In Western Australian terms a person who spent several hours having a picnic near granite
outcrops in the hills will receive a higher dose of radioactivity than from our Rare Earths
concentrate.
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