According to foreign media reports, Malaysian Prime Minister Anwar Ibrahim stated on September 11th that the country will establish a policy to ban the export of rare earth raw materials to avoid resource extraction and loss, making Malaysia the latest country to restrict the export of key minerals.

　　According to data released by the US Geological Survey in 2019, Malaysia's rare earth reserves account for only a small portion of the world's rare earth reserves, estimated at 30000 tons. China is the largest rare earth producer with reserves of approximately 44 million tons.

　　Anwar stated that the Malaysian government will support the development of the country's rare earth industry, and the export ban will "ensure maximum returns for the country". But he did not disclose when the ban would take effect.

　　Image source: Reuters

　　Anwar stated in parliament that the rare earth industry is expected to contribute up to 9.5 billion ringgit (approximately 2 billion US dollars) to the country's gross domestic product and create nearly 7000 job opportunities by 2025. He said, "The government will draw a detailed map of rare earth sources and create a comprehensive business model that combines upstream, midstream, and downstream to maintain the country's rare earth value chain

　　Malaysia's ban will also affect its rare earth exports to China. According to Chinese customs data, between January and July this year, China imported about 8% of rare earth ores from Malaysia.

　　Project Blue analyst David Merriman stated that due to a lack of details, the impact of the Malaysian ban is not yet clear, but the rare earth mining ban may affect Chinese companies operating in Malaysia.

　　Lynas Rare Earths from Australia is the largest rare earth producer outside of China, with a factory in Malaysia responsible for processing concentrates obtained from Australia. It is currently uncertain whether Malaysia's export ban will have an impact on Lynas, who has not immediately responded to the request for comment.

　　Previously, Malaysia had imposed restrictions on some of Lynas' processing operations due to concerns about the radiation levels generated by the cracking and leaching processes of rare earths. Lynas has refuted these allegations and stated that the company has complied with relevant regulations.

　　This article is reprinted from Gaishi Automotive Information Network