MALAYSIA views cooperation with China in terms of technical and technological assistance for rare earth elements (REE) processing as a strategic development, says Datuk Seri Johari Abdul Ghani (pic).
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 written reply to 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 Xi.
“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 safeguarding technology is a major concern for China, Xi requested that such cooperation involve only government-linked companies (GLCs), he said.
“However, the matter is still at a preliminary stage and no final decision has been made,” Johari added.
Malaysia, he said, welcomes China’s willingness and will continue to examine the next steps comprehensively and cautiously.
“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 Minerals and Geoscience Department (JMG) in 2019 estimated the country’s potential REE resource at 16.1 million tonnes, but this remains at the inferred resource level and needs further study to confirm mineable reserves.
Meanwhile, in a written reply, the ministry said Malaysia is still not fully equipped with the expertise and technology to harness these resources.
For instance, the REE mining project in Mukim Kenering, Hulu Perak, is being carried out using in-situ leaching technology in collaboration with China.
Despite various parties claiming to possess the relevant expertise and technology, it has yet to be proven at a commercially viable level, said the ministry.
The absence of local processing plants to separate the valuable REE from local sources is also a major barrier to rapid industry development, the ministry told Datuk Ku Abdul Rahman Ku Ismail (PN-Kubang Pasu).
