KUALA LUMPUR: Malaysia is viewing the cooperation with China in terms of technical and technological assistance in rare earths elements (REE) processing as a strategic development, says Datuk Seri Johari Abdul Ghani.
The Natural Resources and Environmental Sustainability Minister said Chinese President Xi Jinping had conveyed Beijing's readiness to help Malaysia in its rare earths ambitions during his state visit to Kuala Lumpur from April 15 to 17.
"The government views this matter as a strategic development, given that the REE processing stage, particularly the separation of elements, is currently the most critical part of the entire REE industry value chain, due to China’s clear dominance at the global stage," said Johari in a parliamentary written reply to a question from Lee Chuan Pow (PH-Ipoh Timor).
Lee had asked the ministry to state the latest status of discussions between Malaysia and China regarding cooperation in rare earth separation technology following the visit of China President Xi and Prime Minister Datuk Seri Anwar Ibrahim.
"If this is realised, this initiative would enhance Malaysia’s reputation in the REE industry by becoming the only country to host an REE processing plant using Chinese technology outside of China," said Johari.
In this regard, considering that technology safeguarding is a major concern for China, Xi requested that such cooperation involve only government-linked companies (GLCs), said Johari.
"However, the matter is still at a preliminary stage and no final decision has been made," added the minister.
Malaysia, he added, welcomes China’s willingness and will continue to examine the next steps in a comprehensive and cautious manner.
"The government will ensure that any cooperation with foreign parties takes into account existing policies and national interests.
"As of now, no memorandum of understanding or cooperation agreement has been signed between Malaysia and China," added Johari.
Currently, China dominates the entire REE value chain, including the processing stage.
A preliminary study by the Department of Minerals and Geoscience Malaysia (JMG) in 2019 estimated the country’s potential REE resource at 16.1 million metric tonnes, but this remains at the inferred resource level and needs further study to confirm mineable reserves.
