KUALA LUMPUR: Raw rare earth elements may be exported for research and processing, subject to conditions that include a commitment to develop processing activities locally, says the Natural Resources and Environmental Sustainability Ministry.
The ministry said this in a written parliamentary reply to Kulim Bandar Baharu MP Roslan Hashim, who asked about steps to speed up the country's rare earth value chain.
"The government allows the export of raw rare earth elements for two purposes, namely research and development (R&D) and processing," it said.
It added that this was subject to set conditions, including a commitment to develop processing and other value added activities in the country.
The ministry did not say when the conditions were introduced or how many export approvals had been granted.
The reply comes two months after Deputy Natural Resources and Environmental Sustainability Minister Syed Ibrahim Syed Noh told Bloomberg the government was considering allowing limited exports of unprocessed rare earths.
He said then that pressure was coming from state governments and investors, and that any exports would be tied to investment in Malaysia and technology transfer.
He added that such exports should be used for R&D overseas, but gave no timeline for a decision.
Malaysia's moratorium on raw rare earth exports has been in force since Jan 1, 2024.
Last November, the ministry said the ban would remain from 2025 to 2027 to support the development of the midstream industry, and would continue in the medium term after that.
In February, Natural Resources and Environmental Sustainability Minister Datuk Seri Arthur Joseph Kurup told the Dewan Rakyat that Malaysia was maintaining the ban so the resource would not be exploited without value being added.
In October 2024, the ministry said a pilot project in Kenering, Hulu Perak, run with the Perak government, had Cabinet approval to export raw rare earths as rare earth carbonate. It said no other export permissions had been approved.
Perak Mentri Besar Datuk Seri Saarani Mohamad said last December that the state still had special permission to export under its pilot project, with approval granted periodically.
The ministry also said it was helping local companies work with French industry players on processing, purification and separation technology, and that a two year study with the Japan International Cooperation Agency (JICA) was under way.
In July, French firm Carester announced plans to build a rare earth separation plant in Perak under a 10 year partnership with local miner Malaco Mining Group, which includes technology transfer.
Malaysia has an estimated 16.1 million tonnes of inferred rare earth reserves, which the government has previously valued at RM970bil.
