The Australian mining company Lynas Rare Earths announced October 20 that it will be temporarily pausing most of its operations in Malaysia to make upgrades to its plant as the organization prepares for a legal battle with the Malaysian government over its operating license.

The Lynas refinery in Malaysia has been in operation in the state of Pahang since 2012. However, the facility has been dealing with legal troubles regarding concerns about radiation created from waste accumulating at the plant.

The Malaysian government claims that Lynas has produced over a million metric tons of radioactive waste over the last 11 years, but Lynas asserts that its operations are safe.

Most operations at the Malaysian refinery will be shuttered for the next two months while Lynas prepares to ramp up its downstream operations, according to the Associated Press. Lynas said that the upgrades are necessary if the company’s license is updated so that it can continue to import and process raw materials from January 1, 2024.

If operations are allowed to resume, Lynas will perform further maintenance work on its cracking and leaching facility. However, Lynas will use its additional downstream capacity for a new facility in Australia if the license is not extended.

“Lynas continues to manage operations to optimize outcomes within various scenarios. Key variables include the operating license conditions in Malaysia and the start-up and commissioning process in Kalgoorlie,” the company said.

Though the Malaysian government approved a renewal of Lynas’ license earlier this year through March 2026, the country demanded the company move its cracking and leaching processes out of Malaysia. Additionally, Lynas was barred from importing raw materials that had radioactive elements into the country.