Minister says tracing Lynas' rare-earth exports from Malaysia is technically difficult

Investment, Trade and Industry Minister Johari Abdul Ghani told parliament that tracing the ultimate destinations and end-uses of rare-earth exports from Lynas’s Gebeng refinery is technically difficult, given the fragmented nature of the supply chain. His comments responded to a question from Kuala Terengganu MP Ahmad Amzad Mohamed about Lynas’s recent binding letter of intent with the US Department of Defence to supply both light and heavy rare-earth oxides for four years.

While Lynas says the cargo is intended for research and development in permanent-magnet production, the minister noted the diverse applications of rare-earth elements make verification hard. The agreement establishes a floor price of US$110 per kilogram for neodymium-praseodymium oxides, well above last year’s benchmark, and has attracted criticism from a coalition of NGOs that fear linking Malaysia’s mineral sector to foreign military supply chains could affect the country’s stance on international conflicts. Malaysia remains the only major non-Chinese source of separated heavy rare-earth compounds, a strategic asset for high-tech and defence industries.