Khazanah Tight-lipped On Malaysia-China Rare Earth Talks

By Kisho Kumari Sucedaram & Niam Seet Wei

KUALA LUMPUR, Oct 3 (Bernama) -- Khazanah Nasional Bhd has remained non-committal on news reports that Malaysia and China are in talks over a rare earths refinery project.

Reuters reported on Thursday that the two countries are in early discussions on a project to process rare earths, with Khazanah expected to partner with a Chinese state-owned firm to build a refinery in Malaysia.

"It is Khazanah's policy not to comment on rumours and market speculation, and therefore we will not be able to answer your specific questions at this time," the sovereign wealth fund told Bernama today.

Currently, Lynas Malaysia Sdn Bhd, a subsidiary of Australia-based Lynas Rare Earths Ltd, operates the country’s only rare earth processing facility, which is also the world’s largest single rare earths processing plant, located in the Gebeng Industrial Estate in Kuantan.

It produces high-quality separated rare earth materials for export to manufacturing markets in Asia, Europe and the United States.

On Aug 27, 2025, Deputy Minister of Investment, Trade and Industry Liew Chin Tong said the government is committed to developing and attracting potential investors to strengthen production activities along Malaysia’s rare earth elements (REE) supply chain.

"The New Industrial Master Plan 2030 and the National Advanced Materials Technology Roadmap 2021-2030 will support the government’s efforts in developing advanced materials, including high-value REE mineral ore resources," he said.

Malaysia is estimated to hold 16.1 million tonnes of non-radioactive rare earth elements with a market value of RM809.6 billion.

-- BERNAMA