China to assist in developing Malaysia’s rare earths sector

The world’s top miner and processor of rare earths, China, is said to be in discussions with Southeast Asian country Malaysia to provide technical and technological support for rare earths processing, says a Reuters report, citing Johari Abdul Ghani, Malaysia’s minister of natural resources and environmental sustainability.

Malaysia has been seeking to develop its capabilities in rare earths mining and processing, as it looks to capitalise on rising global demand for critical minerals used widely in semiconductor chips, electric vehicles and military equipment.

“Considering that technology safeguarding is of great importance to China, Chinese President Xi Jinping requested that the cooperation only involve government-linked companies,” Johari said, adding that discussions remained in the early stages and no agreement between the two countries has been reached.

Johari said China’s assistance in the matter was crucial given its global dominance, particularly in the separation of rare earth elements.

It would also grow Malaysia’s reputation in the sector as the only country to feature both Chinese and non-Chinese processing technology, Johari said, referring to a rare earths processing plant operated by Australian miner Lynas in Malaysia’s Pahang state.

Malaysia has banned the export of raw rare earths, allowing only shipments of processed rare earths, in a bid to avoid exploitation and loss of resources.

Johari also said Malaysia had some 16.1 million tonnes of rare earth deposits, according to a 2019 estimate by Malaysia’s Minerals and Geosciences Department.

He cautioned, however, that more research was needed to determine how much can be mined, with policies in place to ban mining in permanent forests, environmentally sensitive areas and protected reserves.