AUSTRALIAN rare earths miner Lynas Corporation has dropped defamation action against a Malaysian green group.
In April last year, Lynas initiated legal proceedings against Save Malaysia Stop Lynas.
Two months later, independent media website Free Malaysia Today apologised for running stories sympathetic to the activists, who opposed plans for a processing plant.
Lynas Corporation chief executive Eric Noyrez on Tuesday said solicitors had been instructed to discontinue legal action against the activist group.
"There is no value in continuing disputes with members of our local community," he said in a statement.
"Therefore, Lynas intends to instruct its solicitors to discontinue its defamation claim against the Save Malaysia Stop Lynas group."
Still, Mr Noyrez said the green group's comments had created fear, ahead of the plant starting operations in November 2012.
"There were many statements and claims ... which caused anxiety for the community," he said.
The company says its plant, at Kuantan on Malaysia's east coast, produced significantly lower emissions than environmental and radiological impact assessment limits had stipulated.
"They prove to everyone that our products and processes are safe for people and safe for the environment," Mr Noyrez said.
Lynas shares fell 1.25 cents, or 2.84 per cent, to 42.75 cents following the statement's release.
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