Rare earths miner Lynas expects its controversial plant in Malaysia to finally begin production in December after long delays caused by environmental and political concerns.

The company has also strongly defended its reputation and the safety of the plant, which continues to draw criticism from locals.

After a drawn-out approval process, and several legal challenges from locals and activists, Lynas’ advanced materials plant in Gebeng, Malaysia, currently has a temporary operating licence.

Opponents, arguing the mine will pollute nearby land, are still seeking an interim stay on the licence and have appealed to the Malaysian High Court.

A small number of protesters rallied outside the company’s annual general meeting in Sydney on Tuesday.

“The project in Malaysia is safe to our employees and even safer to the community,” executive chairman Nicholas Curtis told shareholders at the meeting.

“The much discussed issue of radiation is not a health hazard in our project.”

He acknowledged it had been a testing year for shareholders, with the company’s share price recently hitting an all-time low of 55 cents, down from $1.165 a year ago.

The delays at the Malaysian plant also forced Lynas to raise $200 million by issuing new shares recently.

But he said first operations will begin in December, and by the second half of calendar 2013 the plant would be nearing full production capacity.

Production revenue was set to flow from the first quarter of calendar 2013, he said.

Lynas shareholders overwhelmingly voted in favour of the company’s remuneration policy, despite expectations of a potential backlash.

Mr Curtis also said prices for rare earths had now fallen back to more sustainable levels, and growth in demand is expected to resume as soon as the second half of 2013.

Rare earths are metallic elements used in products ranging from digital televisions, mp3 players and fluorescent light bulbs.

Lynas shares gained 2.5 cents to 66 cents.