Malaysia China In Talks On Rare Earths Refinery Project Says Report


Sources say that Khazanah Nasional may partner with a Chinese state-owned firm in a venture that would give Beijing access to Malaysia’s reserves.
Sources said that China is willing to share processing technology in return for access to Malaysia’s 16.1 million metric tonnes of rare earth deposits, in an effort to curb competition from Australia’s Lynas Rare Earths. (AFP pic)PETALING JAYA: Malaysia is in early talks with China on a rare earths processing refinery project that could see sovereign wealth fund Khazanah Nasional teaming up with a Chinese state-owned company, according to a news report
Reuters quoted two Malaysian sources as saying that Beijing was willing to provide processing technology in exchange for access to Malaysia’s 16.1 million metric tonnes of rare earth deposits, seeking to counter competition from Australia’s Lynas Rare Earths which operates a plant in Pahang.
However, the proposed venture faces hurdles. One source said Beijing was uncertain whether Malaysia could provide enough raw material for the plant, while two other sources said Malaysia was concerned about environmental and regulatory issues.
Mining approval in Malaysia requires both federal and state consent, and extraction is banned in sensitive areas such as forest reserves and water catchments.
The refinery, if built, is expected to process both light and heavy rare earth elements critical to industries ranging from electric vehicles and smartphones to defence equipment.
Demand for heavy rare earths in particular has surged amid a global push for clean technology.
Johari Ghani, who is temporarily carrying out the duties of the natural resources and environmental minister, said in August that China had offered technical assistance, but stressed that talks were still at an early stage and no agreement had been reached.
Khazanah and the relevant ministries did not immediately respond to requests for comment, Reuters said. - FMT


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