Malaysia-France rare earth mining and refining project enters pilot plant stage, with potential to boost downstream magnet manufacturing in Malaysia.
KUALA LUMPUR: A strategic mining project between Malaysia and France has progressed to the pilot plant phase for mining and refining rare earth elements.
The collaboration between Malaco Mining Sdn Bhd and French specialist Carester aims to expand Malaysia’s industrial capacity in the critical minerals sector.
French Inter-Ministerial Delegate for Strategic Minerals, Benjamin Gallezot, said Malaysia has the opportunity to develop domestic technology to refine both light and heavy rare earths.
He stated this refined material could then be utilised downstream in the magnetic sector, which is crucial for electric vehicles and electronics.
“This is a key project,” Gallezot told a press conference, adding that his visit aimed to engage Malaysian authorities to ensure the agreement’s success.
The Memorandum of Understanding was signed last July in the presence of Prime Minister Datuk Seri Anwar Ibrahim and former French Prime Minister François Bayrou.
Gallezot expressed confidence in the project’s success due to the quality of Malaysia’s rare earth resources and the developing midstream refining capabilities.
He noted the downstream magnet manufacturing sector is expected to grow significantly within the country as a result.
While a French company is involved in upstream and refining stages, the downstream magnet sector may attract other international partners.
“Japan is also very interested in the project here in Malaysia, and we are having discussions with the Japanese government,” Gallezot revealed.
He added that several European companies have also expressed interest in the downstream opportunities in Malaysia.
Gallezot emphasised that Malaysia possesses the necessary technical experience and industrial base to scale up operations in this market.
France’s interest extends beyond rare earths, with proposals for collaboration in other fields to diversify supply chains.
“Malaysia is, and can continue to be, a very important strategic partner for Europe and France,” Gallezot stated.
France remains one of Malaysia’s top five trading partners within the European Union, with bilateral trade reaching RM15.95 billion in 2024.
