The Malaysian Insight

MALAYSIA is sitting on about RM732 billion worth of rare earth metals and the government is drawing up plans on whether to exploit these minerals, said a minister.

Water, Land and Natural Resources Minister Xavier Jayakumar said a minerals development board is being formed to study how the country can develop its own rare earth industry despite safety and environmental worries.

He said the board will draw up a comprehensive plan on how rare earth deposits throughout the country can be mined and processed using the strictest regulations.

Rare earth deposits have so far been identified in Tanah Merah, Baling, Jeli, Trong, Muar, Simujan and Samatan, said Xavier, adding that development of the industry could bring in at least RM100 billion in the next 10 years.

“But we must invest heavily in it,” Xavier told Dewan Rakyat today. 

“We must also focus on its effects on the environment and residents,” Xavier said in response to a question from Santhara Nair (PH-Segamat).

Rare earth metals are widely used in computers, smartphones, solar panels and hybrid cars but their extraction and processing are controversial because of their radioactive nature.

This point was brought up to Xavier by Wong Tack (PH-Bentong), who questioned the government’s rationale behind developing the industry given the controversies over rare earth refineries in Malaysia.

Members of the government’s own ruling coalition, Pakatan Harapan, have stridently opposed the Lynas Advanced Materials Plant in Pahang, which processes rare earth metals from Australia.

PH MPs such as Wong and Fuziah Salleh of Kuantan have led campaigns to shut down the plant that was built during the time of the former Barisan Nasional government. 

“The United States and Japan have rich rare earth deposits but even they do not extract them. Australia has to ship their rare earth materials to Malaysia to be processed,” Wong said in his supplementary question to the minister. 

“So, why should we go into this industry when other countries do not want to?”     

Xavier said despite concerns over Lynas, the government will allow the mineral board to explore the industry’s potential in Malaysia.

“Just because other countries don’t do it does not mean Malaysia should follow suit. At the same time, we can take the example in Kuantan (Lynas) as an opportunity to improve and strengthen our SOPs.” – July 18, 2019.