Malaysia Bans Export of Unprocessed Rare Earths, Pushes for Downstream Investment

KUALA LUMPUR: Malaysia has announced a ban on the export of unprocessed rare earths as part of a broader strategy to secure greater economic value from its strategic mineral resources.

Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz said the move is intended to encourage international firms to invest in downstream processing within Malaysia, positioning the country as a hub for rare earth refining rather than merely a raw material supplier.

Unprocessed Rare Earths

“Whatever has been mined, cannot be exported unless it went through the midstream and downstream part of the activities,” he told CNBC’s Squawk Box Asia.

Australia’s Lynas Rare Earths, which mines in Kelantan and operates a processing facility in Gebeng, Pahang, remains one of the players allowed to export from Malaysia under the new rules, as exports are permitted only after processing.

Tengku Zafrul also underscored Malaysia’s neutral stance in balancing trade between the United States and China, the world’s two largest rare earth markets. “If you allow, for example, export of rare earth to China, you must also allow to other parts of the world. So we have to be consistent, to be neutral,” he said.

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