 "China expanding rare earths dominance, in talks with Malaysia for refinery project: Report")
China and Malaysia are likely to collaborate on a project to process rare earth minerals. The project will be funded by Khazanah Nasional, in partnership with a Chinese state-owned firm, to build a refinery in Malaysia.
If the partnership goes ahead, it would be a notable break from China’s usual strategy, as the country has tightly controlled its rare earth processing technology to preserve its edge in the global market.
According to a report by Reuters, China is ready to give Malaysia access to its technology in exchange for the country’s untapped rare earth reserves. The move is likely to give stiff competition to Australian rival Lynas Rare Earths, which has a processing plant in the central Malaysian state of Pahang.
How will the refinery work?
The proposed refinery is expected to process both light and heavy rare earths, two Malaysian sources said. These elements are critical to the manufacture of products from cars and mobile phones to military equipment.
Heavy rare earth metals, used widely in the development of clean technology, are less common, however, and some elements face shortages amid high demand.
While Malaysia’s Minister for Natural Resources, Johari Abdul Ghani, has said that China was prepared to provide technical assistance in processing rare earths, Chinese President Xi Jinping has instructed to limit collaborations with state-linked companies to protect trade secrets.
What are the hurdles?
A Malaysian source told Reuters that the plan faced several roadblocks, however, such as China’s concern about whether Malaysia would be able to supply enough raw material for the plant.
Meanwhile, Malaysia is also concerned about the environmental impact of building such a refinery in the country and regulatory hurdles, since mining activities typically require approvals and licensing from both state and federal government authorities.
Impact Shorts
More ShortsGlobal manufacturers are scrambling to secure alternative supplies of rare earths, after Beijing’s export curbs this year led to output delays for major automakers and magnet producers.
Malaysia has some 16.1 million tonnes of rare earth deposits, the government estimates, but lacks the technology to mine and process them.
With inputs from agencies
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