The document discusses Lynas Corporation's Rare Earths plant in Kuantan, Malaysia. It notes that Lynas chose to locate the plant in Gebeng due to tax exemptions, port facilities, available workforce, and lower costs than Western Australia. The plant will supply 22,000 tons of rare earth concentrates annually by 2013. However, while the plant brings economic benefits, it also poses risks such as impacts to fishing/tourism industries, land/property values, and the economy from rare earth price fluctuations. The document recommends the government review tax exemptions and enhance safety systems to address these issues.

1.  A company that refining the rare earth element
 The Lynas Advanced Materials Plant (LAMP) has
been built in Kuantan, Malaysia.
 Lynas indicates that by early 2013, it will be able
to supply 22,000 tons of Rare Earth concentrates
per annum.
 The LAMP has become the hot issues in recent
year

2. The reasons those attract Lynas choose
Gebeng are shown as below:
 Offering a 12-year tax exemption.
 Nearby port facilities
 Available talent of workers/ skilled workforce
 All the resources required to run the plant at
a lower cost than originally approved in
Western Australia.

3. 1) Benefits in the aspects of investment and
finance
2) Contribute to Gross Domestic Product (GDP)
3) Provide jobs opportunity
4) Attract potential investors
5) Existence of supporting business
6) Currency flow in Malaysia

4.  Although Lynas can bring benefits
to our country in term of economy
but it also poses some economic
risks.
 The benefits derived from
investment may not outweigh the
risk.

6. Consequences
 Affect fishing and tourism industry
 Land prices decline and loss of
professional and talented people

7. Consequences
 Lose significant revenue due to the 12
year tax exemption granted to Lynas

8. Consequences
 Customer shift to others competitor that
doing same type of business
 Affect the economy due to fluctuation in the
price of rare earths.

9. Risk 4 & 5
Consequences
 Affect of local business operation
 Lost of Confidence of Investors either local
or foreign and delay in operation

10. 1)Announce to public about the safety of LAMP
2) Government should review on the 12-year tax
exemption given to Lynas and perform a more
detail analysis in term of cost benefits.
3) Do more training to afford to treat any ermegency
cases happen such as leakage
4)Enhance the safety system and buy the assurance
if it really want built the plant completely

11. 


12.  http://www.cpiasia.net/english/index.php?option=co
m_content&view=article&id=2314:nowhere-in-
australia-would-lynas-be-permitted-so-why-
here&catid=216:others&Itemid=193
 http://akademisains.gov.my/download/rareearth/RE_
Report_English.pdf
 http://www.nytimes.com/2010/10/30/business/glob
al/30rare.html?_r=0
 http://www.personal.psu.edu/mjc5169/ext-text.html
 http://geology.com/articles/rare-earth-elements/
 http://www.australianrareearths.com/current-
issues.html
 http://sun-bin.blogspot.com/2010/10/rare-earth-
elements-what-do-they-look.html