The operation of the Lynas project by Lynas Malaysia Sdn Bhd in Gebeng, Kuantan, is safe and does not affect the environment.

International Trade and Industry Minister Mustapa Mohamed said he was informed of this in a briefing on the company's operations.

He said the company had been in operation for three years.

"Its operations are monitored round the clock and shows to be safe with no increase in radiation readings within one to 20 kilometres from the Lynas plant.

"If the allegations on radiation are true, the industrial area in Gebeng will not grow or be the choice of multi-national companies," he said.

Mustapa was speaking to reporters in Kuantan today during his working visit there to meet with Pahang Menteri Besar Adnan Yaakob, corporate leaders, industry players, political leaders and the public.

He said the Lynas project involved investments of RM2.8 billion. Currently, Lynas is conducting field research on soil conditioners generated from water leach purification residue, which is scheduled to be completed in July next year, he said.

"I have suggested to the company's top management to hold public forum to counter claims of people getting cancer. Also it is not true the price of property has dropped."

Generally, Mustapa said he was happy with the progress and development in Kuantan, as well as the state government's performance in attracting investments in various industries.

"This creates more jobs, maximising the use of Kuantan Port and with local residents benefitting from spill-over economic effects," he added.

During the visit, which began yesterday, Mustapa also visited the Malaysia-China Kuantan Industrial Park development, which will begin operations, with a steel plant by Alliance Steel Sdn Bhd for a start, in the fourth quarter of 2017. The project is expected to create 3,515 job opportunities.

He also visited the RM4.1 billion Kuantan Marine Port Terminal, a joint-venture project between the state government and Kuantan Port Consortium Sdn Bhd, and the bumiputera-owned oil and gas equipment production company.

- Bernama