The government has agreed to allow some flexibility in its moratorium on exports of raw rare earth elements (REE) to attract potential investors to the industry.
The Investment, Trade and Industry Ministry (Miti) said in a parliamentary reply that the flexibility would be given through guidelines for considering applications to export raw rare earth elements, and would be limited to research and development activities.
Companies granted approval must also show a clear commitment to working with partners to develop processing facilities in Malaysia within three years of the date their raw REE exports are approved.
Miti said rare earth investors were currently reluctant to invest because there was no assurance of a stable supply of raw materials in the country.
The ministry said its strategy was to attract domestic and foreign investment to build up the midstream and downstream parts of the industry, especially high-tech manufacturing such as permanent magnets, advanced materials, electronic components and batteries, with help from partner countries experienced in REE processing.
It was replying to a question from Shaharizukirnain Abd Kadir (PN-Setiu) on the government’s stance on a USD96 million rare earth oxide supply deal between Lynas and the Pentagon.