By Agence France Presse

China currently supplies about 95 percent of world demand for rare earths, which are used in high-tech equipment from iPods to missiles and have seen prices soar in recent years.

Lynas hopes to begin operations within months, producing an initial 11,000 tonnes of rare earths a year and effectively breaking the Chinese stranglehold on the materials.

But more than 5,000 people, many wearing green and holding banners reading “Stop pollution, stop corruption, stop Lynas”, gathered in Kuantan to call for the plant to shut down, chanting: “We want Lynas to close down”.

Lee Tan, an activist who helped organise the rally, said: “The plant is dangerous because it produces huge amounts of waste that is radioactive”, adding residents were worried the waste could leak into the ground and water.

Opposition leader Anwar Ibrahim also attended the protest and his colleague Fuziah Salleh said the plant should be relocated “in the middle of the desert”.

“The green rally is in support of sustainable development and Lynas is definitely not a sustainable development,” she told AFP.

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