Posted on 13 Sep 2023
Malaysia Prime Minister Anwar Ibrahim is planning to ban rare earth exports to maximise the gains the elements are poised to bring to the country, Kallanish learns.
Speaking at parliament on Monday, addressing a mid-term review of the country’s five-year economic plan 2021-2025, Anwar said a new mining policy will also be adopted to guide rare earth mining in protected areas.
“The government will come out with a policy which bans the export of rare earth raw materials to prevent any exploitation, loss of resources and in turn guarantee a maximum return to the country,” he said. “Detailed mapping of rare earth elements and an overall picture of a business model combining upstream, midstream and downstream industries will be developed to ensure that the value supply chain of rare earth elements remains in the country.”
The official estimates the rare earth industry emerge as a “new sustainable source of growth,” potentially contributing RM 9.5 billion ($2 billion) to the country’s gross domestic product by 2025. It could generate 7,000 jobs, he adds.
A timeline for the passing and adoption of the ban is yet to be provided.
Australia-listed Lynas Rare Earths operates the world’s largest single rare earths processing plant in Malaysia, where it produces high-quality separated rare earth materials for export to Asia, Europe and the US. The plant in the Gebeng Industrial Park, near Kuantan, Malaysia, processes rare earths mined in Australia.
The company, which claims to be the only major separated rare earth materials producer outside China, is currently fighting the Malaysian government in court due to restrictions on its operating licence, renewed in February 2023.
The allegedly new conditions prohibit the import and processing of lanthanide concentrate after 1 January 2024. Lynas says the conditions represent “a significant variation” from the conditions set when it made the initial decision to invest in Malaysia. The company didn’t immediately reply Kallanish’s request for comment on the proposed new policy.
Source:Kallanish
