Malaysia has revealed that China is prepared to offer assistance in developing rare earth processing technology, contingent upon partnerships involving Malaysian state-owned companies.
Reuters reported that Johari Abdul Ghani, Malaysia's Minister of Natural Resources and Environment Sustainability, said Chinese President Xi Jinping conveyed this willingness during his visit to Malaysia in April 2024.
Technology protection drives partnership conditions
Johari explained that Xi emphasized technology protection concerns, requesting that cooperation be limited to government-related entities in Malaysia. The discussions remain at an early stage, and no formal agreements have yet been finalized between the two countries.
Malaysia holds rare earth element deposits, but it currently lacks the necessary processing technology and a skilled workforce. Johari highlighted China's competitive edge, particularly in the separation of rare earth elements. If collaboration with China advances, Malaysia could host both Chinese and non-Chinese rare earth processing capabilities.
Non-Chinese operators already present
The reference to non-Chinese operators primarily denotes the Australian company Lynas, which operates facilities in Pahang and Kuantan. Lynas imports rare earth concentrates from Australia into Malaysia for further processing.
To promote local value addition, Malaysia has banned the export of unprocessed rare earths, aiming to attract multinational investments in the midstream and downstream sectors. Zafrul Aziz, Minister of Investment, Trade and Industry, noted the country has held separate discussions on rare earth matters with the US and China, pledging equal and non-discriminatory application of relevant policies.
Government takes proactive approach
According to Nanyang Siang Pau, Liu Zhentong, Deputy Minister of Investment, Trade and Industry, said the government is proactively engaging with countries possessing rare earth technology through high-level visits, inspection tours, and trade negotiations. He also noted the establishment of a special committee dedicated to rare earth industry development to study issues and support industrial growth.
Massive reserves discovered in 2024
According to the East Asia Forum, Malaysia has revealed the discovery of rare earth element resources following a 2024 reconnaissance study conducted by the Department of Mineral and Geoscience. The study estimated that the country possesses approximately 16.2 million tonnes of these resources, based on limited geological data and sampling.
According to Malaysia's New Industrial Master Plan 2030, these rare earth element resources are valued at MYR747.2 billion (US$175 billion) and have the potential to attract investments worth MYR100 billion. The plan also projects the creation of around 4,000 new jobs as a result of this development.
Article edited by Jerry Chen
