Aug 5 (Reuters) - Australian rare earths miner Lynas Corp said on Wednesday it aims to begin development of a permanent waste treatment facility in Malaysia by early 2021 and will apply for final regulatory approvals over the coming months.

Lynas can build its facility in a waste disposal site identified by the Pahang state government, Khairy Jamaluddin, Malaysia's science, technology and innovation minister said in parliament on Tuesday.

The disposal of low-level radioactive waste from Lynas's Malaysian plant has been a contentious issue, with some Malaysians taking to the streets to protest against the plant citing health concerns.

Identifying a location for the permanent disposal facility (PDF) was part of the requirements set by the Malaysian government when it renewed Lynas's licence to operate in the country last year.

"This progress on the PDF will provide further certainty for the over 650 direct employees and the thousands of indirect employees of the Lynas Malaysia plant," the company said in a statement.

Lynas added that the construction and operation of the facility at Bukit Ketam will be in compliance with Malaysia's regulatory requirements and international guidelines.

(Reporting by Shriya Ramakrishnan in Bengaluru; Editing by Stephen Coates)