KUALA LUMPUR, Dec 12 — Malaysia has the opportunity to leverage rare earth element (REE) mining management technology through negotiations with China, despite the country’s strict policies on technology transfer.
The Special Select Committee on Environment, Science, and Plantation of Parliament stated that local expertise, such as that developed by Lynas Malaysia Sdn Bhd, should be further developed and strengthened through training in REE engineering and technology.
The committee emphasised that the growth of the REE industry requires a skilled workforce in fields like mining engineering, geology, and chemistry, with additional training to enhance local capabilities.
“Government-to-government (G2G) cooperation and multilateral arrangements should be explored to create a flexible business model and ensure global competitiveness, reducing dependence on local investors or companies like Lynas alone,” it said in a statement regarding the REE Report issued in Parliament today.
The committee also recommended a 15-year license to build investors’ confidence while allowing the government the right to shut down mining operations if the company violates the conditions.
It noted that with Lynas’s patented REE processing technology, Malaysia is strategically positioned to compete with China.
While Malaysia has abundant REE resources, the committee pointed out that the country is currently involved only in the upstream and midstream stages of the industry, unlike China, which has a fully integrated ecosystem.
Delays in establishing the Central Buying House Rare Earth Carbonate could undermine investor confidence, as there is no guarantee for the sale of extracted REE.
The committee stressed that establishing export quotas while awaiting the completion of the REE processing centre is crucial, and cooperation between the private sector and the government needs to be strengthened through investment incentives to develop the REE ecosystem from upstream to downstream.
“Additionally, collaboration between academics, scientists, and industry players is vital to ensure a continuous economic cycle,” it said.
However, the committee noted that the progress in the downstream and midstream processes is currently hindered by the underdevelopment of the upstream industry which faces challenges such as the absence of REE mining licenses and the lack of raw materials,” it said.
To address these challenges, the committee has submitted 22 recommendations to ensure the development of the REE industry in Malaysia aligns with the existing potential.
“The committee hopes that the government and the Ministry of Natural Resources and Environment Sustainability will carefully consider these recommendations. Appropriate action must be taken to ensure the REE industry in Malaysia can be developed sustainably and responsibly,” it added. — Bernama
