Rare earths group Lynas has been forced to refute claims in Malaysia that it misled the ASX with an announcement last month it had reached an agreement for a site for the permanent disposal of its contentious toxic waste.

The announcement - with the Pahang state government - was seen as a crucial step in getting a permanent extension to its licence to operate in Malaysia which has threatened the future of the company over the low level radioactive waste generated by its operations.

Anti-Lynas group — Save Malaysia, Stop Lynas (SMSL) — said on Wednesday the ASX announcement last week was “grossly inaccurate” after Pahang official Abdul Rahim Muda denied that Bukit Ketam would be a dump site for the Lynas waste.

"The denial by a representative of the Pahang government has placed Lynas’ corporate announcement to the ASX grossly inaccurate and with an intent to mislead," the group said in a statement.

In a release to the ASX on Thursday morning Lynas said the state government of Pahang has confirmed today that it has “agreed with Lynas Malaysia’s proposal to locate the PDF (permanent disposal facility) site at Bukit Ketam Kuantan."