Malaysia allows first export of raw rare earths under new rules

KUALA LUMPUR:

Malaysia has given the go-ahead for a batch of unprocessed rare earths to be exported, the first approval under a new framework designed to permit testing and potentially encourage investments in local capacity.

A single export application for research and development purposes has been permitted by the mineral and geoscience department, the natural resources ministry said in response to a Bloomberg query. It did not identify the applicant or provide details.

Rare earths are among the most critical raw materials on the planet, deeply embedded in the technologies that underpin modern life, including an array of key defence applications. While China has long dominated their mining and processing, other nations including Malaysia are now stepping up efforts to develop their own capacity in a push to reduce reliance on Beijing.

At present, the Southeast Asian nation hosts Australia’s Lynas Rare Earths Ltd, one of only two major producers outside China, with local conglomerates including Berjaya Corp Bhd also exploring projects.

Among other overseas companies, France’s Carester SAS plans to build a rare-earths separation plant ​in the northern state of Perak with Malaysia’s ‌Malaco Mining Group, and more than a dozen US firms are also exploring local opportunities.

Earlier this month, Malaysia released guidelines for the conditional export of raw rare earths, easing a moratorium that had been in place since 2024. Under the revised framework, shipments of unprocessed materials can be permitted for research and development or processing, subject to conditions.

“The guidelines are open to eligible applicants, including foreign companies, subject to compliance with the relevant regulatory requirements,” the ministry said. The priority is not the number of applications approved, but quality of investments, technology transfer and long-term value creation, it added.