Rare Earth Could Boost Malaysia’s Growth by 2020

December 21, 2011 (Source: NASDAQ) — With most of its natural resources already nearing depletion, Malaysia has been urged to seriously consider opening itself to accommodate the production of rare earth metals.

Dr. Ahmad Ibrahim , Chief Executive Officer of the Academic of Sciences Malaysia, in a report titled "Rare Earth Industries: Moving Malaysia's Green Economy Forward," said the rare earths sector could very well fuel Malaysia's drive to achieve high income status by 2020.

"Our oil, land and other reserves are depleting, so we need to look for new opportunities and this is one of it,"  Ibrahim  said.

These days, high-tech industries depend on a sustainable supply of rare earth elements. Rare earths are widely used in manufacturing a number of applications including aerospace, consumer electronics, automotive and telecommunications.

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Malaysia has 30,000 tonnes of rare earth reserves from residual tin deposits.

"Malaysia is very much strategically placed in the race for green technology competitiveness in the next five to 10 years," Datuk Dr Lee Yee Cheong, ASM chief spokesman, said during the launching of the report.

Moreover, the report said the highly controversial Lynas Corp. rare earth plant in Gebeng can be a catalyst for the development of green technology in Malaysia. Despite reports the plant is 85 per cent complete, the Malaysian government has yet to issue a pre-operational license to Lynas Corp. It is expected to be operational by early next year.

Since rare earths support environmental friendly technology, Malaysia has the opportunity to build downstream industries around the plant.

Ibrahim  said global demand for rare earth minerals will continue to soar with the continued high-tech advances, saying Malaysia should not just focus on the low value from upstream but also to venture further into the downstream as it would help to foster the nation's economy.

  1. Malaysia has a great future in green energy IMO. They have positioned themselves well. They are going through some growing pains trying to understand and accept Lynas’ LAMP. But if they do approve LAMP it will be the cornerstone of a powerful industry and great high tech and skilled jobs. The industry has the ability to bring this country a much higher GDP in 2012 and to boost them to a powerful emerging status. They literally can avoid labor exploitation like that in China; avoid the “cheap tech” phase like Japan went through and instead could go straight to the top of the economic food chain IMO. I wish the nation well.

  2. To host a production of rare Earth in the country surely will attract more advanced downstream companies; Lynas’ LAMP might well be a crystallization center for production of many high tec products and improve Malaysias wealth and knowledge.

  3. I hope that they can, I truely do. I have strong ties, interests and love of Malaysia. If they can overcome the China fostered agitators that are persisting with their harassment of Lynas, then they could well ride a wave that will take them forward. There are many Australian projects that will be looking for, and needing downstream processing over the next 5 years. As long as the income and benefits generated do not go the way of the huge profits from their petroleum income. Which seem to dissolve into the miasma of government cronyism, whilst public services (Education,Health,Transport,Infrastructure etc.) are 3rd world at best.

  4. Unfortunately, Malaysia is although a lovely country, a very racist country (DYOR). The opening of LYNAS will be a great step forward in breaking down this problem. Chinese, Malays, Indians, Gweilo (Caucasians) all working together to bring forward green technologies.
    Good luck Malaysia the choice is yours.

  5. The problem is the Malaysian government had to bad history on handling radiation issue with the latest one more than Half year ago.The previous one is a tragedy and the majority of Malaysian does not take Rare Earth project well base on bitter experience 30 years ago. There is a likely case that LAMP will not get the oprating license.It is obvious that the government is now playing a wait and see attitude.
    They are hoping that by the current LAMP answering on all the allegations against LAMP can convince the majority Malaysians. And so far they are doing a lousy job.

  6. But the problem is so far the majority of Malaysian are rejecting LAMP in their country. Look at the Lynas Malaysia Facebook website.LAMP is answering all those allegations in their facebook. See how many are against it and how many are supporting it.Until now they isn’t any single group came out to support Lamp to be build in Malaysia while the anti LAMP has already thousands of supporters. And those in the Lynas Malaysia Facebook are almost 80% anti Lamp.You just need to see the comment to justified that.Maybe the government is wating to call a general election which is probally by March 2012 next year. If the Malaysian government still shove LAMP into the throat of all Malaysians before the General Election then they will suffered a dire consequences. They almost lost the election in the year on 8th of March 2008.

  7. The majority clearly like Lynas and the economic development LAMP will bring. There is a lunatic fringe on facebook swindling Malaysian citizens for money and making unsupported comments. This happens on facebook with some issues and is best ignored. Stop Lynas meetings for the last few months are under 20 people per meeting, so what’s the point? I think the best thing to do is ignore the fraud and move on.

  8. Oh really ? Where is the sign that showing the majority ( Of Malaysian )like Lynas and the economic development Lamp bring ? 10,000 ++ like a Lynas Malaysia facebook with 8000++++ commenting in which 7990+++ commenting are anti Lynas is the sign ? What about the media ? I couldn’t see any signs that is supporting Lynas other than Lynas PR talking and supporting themselves. Even the Malaysian government are now quiet.Nowadays meeting are not necessary need many people to join since there are many anti Lynas movement. It’s the rally and event that count which could brought thousands to join and protest. Can the pro Lynas get at least 10 supporters in Malaysia to rally for them ? AT least they can get 20 is consider a success.
    If not look like Lynas chances of getting the license is looking dim.Wanna bet I said that Lynas will only get their operating license if the Malaysia current government wins the next election which might be held somewhere in next of March ? I will apologize if I am proven wrong. And vice versa to you if I am proven right. How ?

  9. Facebook is a poll now? Please. That’s a bigger fraud than Stop Lynas having a legal fund without a lawyer, cause of action or claim! I guess they think Lynas will be approved by January 7, so their dinner won’t be Theft by Deception? Why don’t you go wager with them. Since you don’t read the news (and are myopic enough to think you are the news) let me help you out:
    Australia’s Lynas Rare Earths Facility in Malaysia Gradually Gains Public Approval
    Lynas reaches out to public
    Adhering To IAEA Recommendations Will Make Lynas Rare Earth Plant Safe – Report
    Stop Lynas Waste Water Claim Debunked
    Lynas Dispels Myths Summary of the IAEA Review
    Oh and this from the Malaysian Bar:
    Lynas plant ‘no hazard’ to health and environment
    But the good news from this issue at this Christmas time is:
    Lynas can drive green tech industries, say scientists
    And in the spirit of this season I do wish you and your family great joy.
    Merry Christmas Pan Dai. 1Malaysia!

  10. LOL Chihawk, I can only see that what you are posting are only Lynas and the government PR Jobs. Not a sign showing Lynas is upported by the majorities of Malaysian. Tell you a history of Malaysian news. During the last general election the same news was keep harping the goodies that the goverbment will bring and supported by many people and they are dominating the whole media included the TV station. The results is ? The Malaysia Government almost lost the general election.So what makes you think all the PR jobs posted by the you above is a showing sign of Lynas acception ? Look more like a desperation to me.
    Whether the election is January of february or March or 2013 of whatsoever date my guess is Lynas will only get the license after the election. That if the ruling party wins.And I do read the news. If I want to amuse myself that is.By the way our bet still on ? It just an apology no harm on that.
    And here I wish you A VERY HAPPY CHRISTMAS and HAPPY NEW YEAR to you and your family too Chihawk.

  11. Pan Dai,
    I post links, statistics and information and let the reader decide. You come on here and make one unsupported statement after another. You are welcome to do that, but don’t expect me to take it seriously. You are welcome to call me desparate if you like. But Stop Lynas is broke, engaged in questionable fund raising tactics and can’t get 20 people to attend a meeting anymore. Those are clear facts. I disagree on your election conclusions. On a national level, the issue is way too small to matter IMO. Happy New Year to you and your family too Pan Dai! 1Malaysia!

  12. You can provide any links you want Chihawk. You don’t even know how they got the statistic and just accept it by saying Lynas is all acceptance by Malaysians. Those post link of yours also ignoring about all the protest and rally on the ground. Just simply by doing PR jobs Lynas won’t be going very far.I got only one prove enough and don’t even have to post any link ( Even though I got dozen of links to post )
    The one prove that I am saying is Lynas still haven’t got their operating license despite the plant already 95% complete and also the waste Management plan being submitted the fourth time.This clearly the government is playing with the wait and see game.I will apologise if this was proven wrong and they got their license early if you are on with the bet.By the way I never said that you are desperate. ( If I did I apologise ). I mean is Lynas is desperate.
    And hey thanks for the greetings !Hope you enjoy the holidays. Cheers !

  13. Chihawk. I am very impressed by your methodical and thorough news gathering skills and if we could afford you, think you would have a job here in a heartbeat. Please do send news and media links to asher@pro-edge.com if you think we are missing anything…and thank you.
    Pan dai. I am working through your comments with the understanding that your intent is to make sense of the LYNAS-Malaysian media coverage? We have LYNAS attending our Technology Metals Summit and undoubtedly we will have a better understanding shortly. My experience in Malaysia, as I did a piece on Kuala Lumpur for a CNBC World series on emerging markets — and well, here’s my take…
    It was my understanding that the Malaysian government was implementing all kinds of initiatives to have competitive employment, with strong tax incentives to lure everything from technology to manufacturing to the country. Respectfully speaking, it has always seemed peculiar to me that LYNAS’s processing facilities be targetted in the media as it counter’s the government’s mandates and what I perceived to be goal #1: employment.
    This facility is well placed from an infrastructure and geographical position and so I too am watching this story with great interest.
    Thank you everyone for your posts and inputs. Tracy

  14. Pan Dai that is a silly response. Read your own words. You say everything else is PR, but all of your unsupported comments are true. Really? Then why is the Stop Lynas movement so far in the toilet it can’t find the light? BTW, the statistics I provide do not come from Lynas. The fotos showing no one is showing up to Stop Lynas meetings were posted on the facebook page and the fundraising errors are taken from Stop Lynas promotion of their dinner. http://rareearthfuture.com/2011/12/26/rm300000-for-mystery-meat/

  15. Chihawk. Can you tell me who is behind Rare Earth Future? I see that you are linking back to your own blog on another site. It is always suspicious to me when I see sites that have no obvious owner or source of content. Care to cough it up? Tracy

  16. A group of bloggers created the web site and offered me a dashboard. We are not organized media or industry participants to my knowledge and people are welcome to join the site. The site is designed to cover the industry as a whole. I would describe us as a group of bloggers supporting green technology. The current bloggers follow rare earth mostly and tend to follow Lynas more than other stocks. But the writers edit themselves so the sources of the content stems from each persons own reasearch.

  17. Chihawk and Toly (unless they are the same guy) are behind Rare Earth Futures and are only interested in 2 things: Talking up Lynas and bashing Great Western.

  18. Thank you for the kind words Tracy Weslosky. My background is law so I value the research compliment a great deal. I am happy to share any information with anyone and will keep the email in mind. I can’t help but smile over the CNBC World comment. I was a long time viewer when it was Mandy Drury, Marty Soong, and Sri Jegarajah all at the same desk at the open in Asia. I am glad CNBC kept all three of them. They are good news people and thought they were really great together.

  19. Jake,
    I don’t think Toly is on Rareearthfuture, but he would be welcome anytime. I do feel Great Western Minerals is a bad investment and remain very critical of management. The last five months have been more than worthy of scorn IMO. I also must admit that I am complimentary of the Lynas Corporation. I do not consider myself a basher or pumper of anything. I think readers are responsible enough to research and decide their own opinions just like me. Toly and I communicate frequently not because we like or dislike any particular company, but rather based on the information we share. He is particularly insightful on balance sheet issues.

  20. “Respectfully speaking, it has always seemed peculiar to me that LYNAS’s processing facilities be targetted in the media as it counter’s the government’s mandates and what I perceived to be goal #1: employment.”
    Tracy, could it be that the people of Malaysia are just not interested in a re-run of their experience with REE companies? Maybe they really do want employment, technology, but just not Lynas? Where there is smoke….

  21. Jake,
    There is no informed comparison between Mitsubishi Asian Rare Earth (ARE) in Bukit Merah and the Lynas Advanced Materials Plant. Lynas Rare Earths Concentrate contains naturally occurring radioactive material (NORM), similar to many other mineral concentrates processed around the world. ARE’s raw material was “monazite” from amang (tintailings) which contains 37 times more radioactivity than Lynas Mount Weld raw material.
    No doubt some in Malaysia do not want the rare earth industry under any circumstances. But clearly these numbers are shrinking as the community becomes informed. Stop Lynas would like to suggest that their opinion is dominant but the facts do not support their claims. On the Stop Lynas facebook page (Pahang Don’t Need “Hazardous” Project) membership lists less than 7,000 member names when the bottom scroll is fully loaded, but the page claims 35,000. There are several possible reasons for some of that like privacy for example. But that number is a very low percentage for any group. Add to that the very low percent of posters to members and the membership number doubts grow further. Lastly, getting less than 20 members per local (Kunatan) in person meeting on a list that size is a big red flag as well. But this 35,000 claim seems to have impressed some of the less tech savvy media.
    Australia’s Lynas Rare Earths Facility in Malaysia Gradually Gains Public Approval
    Lynas reaches out to public

  22. Toly is on here as Jay and has talked with Jeb and Gareth on occasion in person and here. He attended the TMR Boot Camp and we met in person in Dallas December 13th. My name is Paul Hampel. As a courtesy I’ll let Jay speak for himself. I don’t think either of us is concerned about anonymity (we both use our photos on Seeking Alpha).

  23. No Tracy, It’s not my intend to make sense of the Lynas Malaysia-Malaysian media coverage. It is the dissent voice of the people that I intend to make sense which was not given coverage by the Malaysian media.Your explanation only justified that the government know best but say nothing about what the ordinary people think. I can come out with a dozen of links from the alternative media to prove my point which I had been doing for the past one year since the anti Lynas campaign started but what the is the point ? What Chihawk / Paul Hampel showing here in the link are nothing but repeating PR by Lynas and the Malaysia government plus their media only they are rebranding it same bottle different labels. Our anti Lynas also has follow the up to counter those rebranded PR jobs by doing our own rebrand but again what is the point ?
    I only need to stated to facts here which I believe that all of you had known as it was well coverage by world wide news.Only those pro Lynas and their shareholders and also the Malaysian government is in denial and uses the media like showing everybody is supporting Lynas. The fact is the dissent voice are getting bigger and bigger.Showing one or two meeting with less than 20 or 50 people proves nothing as they are many anti Lynas groups which has held their own meeting but the mainstream media tends to ignored that thousands has appeared in major rallies for protest by anti Lynas and and hundreds has appeared in minor rallies when each anti Lynas group held their own protest.
    And what about those who supported Lynas ? They can’t even gather a group of 50 people for the rally and had to depend on PR jobs by Lynas and the government machinery to show support for Lynas.
    Now let us talk about the two facts that I am saying about :
    1. The fact is until now Lynas is not getting the operating License and the Malaysia Minister from MOSTI has chided Nick Curtis for making prediction that Lynas will operate on the first half of next Year.This mean the Malaysia Government also do not have that confident.
    2. The waste management plant has been submitted 4 times with three times rejection and the fourth timne is unknown.
    So what are this sign telling ? Lynas on the right track ? And anyone want to dispute this ?

  24. Silly response ? LOL. You mean yours or mine ? First you are the poster in this link right ? ( See the name posted by Chihawk in that post link )Now who are the person who give you this info ? Can you name them? Hey :) I can also give dozens of anonymous post about those who from anti Lynas and also had many things bad to say about Lynas like the anonymous engineer post on the NYT but what the point of making only myself happy.
    And really Stop Lynas movement so far in the toilet and can’t find the light ? Since when did the movement is in the toilet without the light ? Is it just because the government and the mainstream media do not give coverage so it mean that they are in the toilet ?
    One more thing, How long have you been in this supporting Lynas campaign ? You tend to ignored those rallies that had been held many times with thousands of supporters while those who support Lynas doen’t even have one rally.What can you prove with just one photo of the meeting that are not many people attending ? And how many times I had to tell you in facebook and also here that nowadays all meeting doesn’t need to have a lot of people. The commitee members, chairman and vice chairman counts is enough. Furthermore they are many anti Lynas group so they will be many meetings.Man, Is that all you can show ?
    Come on Chihawk, don’t be in denial. You are in all the pro Lynas and anti Lynas facebooks and you should know that they are more who oppose than those who had supported. I know you are also in the I love Lynas Group ( Fact about Lynas group ) and you notice it is quite quiet in there with an average one or two posting perday.That also not everyday.So far did you see anyone posting comments on your post there ?
    You tend to believe what the media, The malaysian government and some anonymous people doing PR jobs for Lynas to feed you information but ignoring the dissent voices in the facebook and claim that they are not relevance.Well I can tell you this too. The media and whatever post that you posted here and at the facebook sites are not relevance to the peace loving ordinary people of Malaysia too.

  25. Pan Dai the info comes from Stop Lynas fliers for the dinner and the Pahang Don’t Need “Hazardous” Project facebook page you asked I be banned from (read the article). The photos of recent events on that facebook page show everyone and there is never more than twenty people for months now. I mentioned the Father’s Day protest was in the thousands. I think Stop Lynas was strong in the spring. But you have to be strong at some point to be considered in the toilet now. I’m not in denial. I do like Lynas and rare earth companies and green technology as a whole.

  26. Jake, your guess is right.The bitter experience in the Bukit Merah Incident ( Regardless of what Paulie ( ChiHawk ) said in the comment below which I will reply later. )has make most Malaysian not interested with Rare Earth project. Yes we want technology but not rare Earth in our own back yard. And actually it is not really Lynas at fault. Is the government enforcement agengy we worried about. Employment ? 350 people ? Kuanatn people are not really desperate for a job.It’s a fishing village and also tourism spot.You can find many beaches and seaside at the East Coast of Malaysia starting from Kuantan to Trengganu with many resorts being built there. Not to mentioned the Club Med in Cherating ( 30KM from Kuantan ) is there for many years.
    And also the recent Radiopharmeutical leak in Selangor are also not helping the Government agency like AELB cause.The Malaysians decided that they will decide what is the best for them and not the government know best. That era is over.Can you see now they are adopting a wait and see attitude on Lynas ? There might be two reason.1. There are waiting for after the Genereal election then only approved Lynas if they win ( Because they will felt they got the majority support ). 2. They want to see how the current PR jobs by Lynas can go far and see if they is any increase support for Lynas then only decide to give the license. My option is on the first. And Paul I am still waiting for your response on the bet.

  27. Pan Dai,
    It is true the Minister of MOSTI chided Curtis for giving LAMP timelines. But I do not see that as showing a lack of government confidence. I thought it was an amateur bureaucrat failing to understand a CEO’s need to inform his shareholders.
    It is true the waste plan was submitted 4 times. We do know the last submission occurred in September. Apparently, this submission has been more satisfactory then the prior reviews and the AELB has looked at it much longer than the previous reviews.
    I do think I have read your repetition of Stop Lynas talking points with nothing additional long enough to concluded the accusation you make is the sin you commit. And I promise you when Lynas is approved over 300 people will show up for work and that is real daily support and far more than the handful of people Stop Lynas produces every few weeks.
    And if you want to be a voice of dissent please inform yourself. That would make this read more interesting. But if you start thinking for yourself and actually research this there is a great risk you will change your view.

  28. Paul when did I say that you be banned from the Group ? ARe you sure I am asking you to be ban or there is other persons who are asking you to be ban ? I just warn you that you might be ban if you keep repeating those post that most of the people heard has seen and comment before even before even at the start the of campaign in early 2011. Some of the mistakes was not even remove regarding the AELB approved of the raidation doses limit which are supposed to be 10 Msv instead it still shows 50Msv in your presentation slide.I had tried to correct you by asking you this many times, a few times in the PDNHP and the other time in the Lynas Malaysia Facebook but you seems to ignored me.I was just hoping that you could left the group like the others Australian David Gatti who left with dignity after he can’t argue and lost the debate but you was ban.
    And your fault is ? Showing repeated post and slide that people had already bored and tired to answer comment again and again. I for one are against the banning of the people from the group but then I am not the admin.Hey cheers Paul, I was even banned from the Lynas asx top stock forum when Marcus and a few guys cannot rebut my allegations there.
    Now talk about the photo again.I said it again and again Paul. With many anti Lynas group now emerge in Malaysia meetings that had fewer audiences doesn’t prove a thing Paul.They will be another big rally coming soon. Take note then and I hope you will give fair comment on that. If might be after the Chinese New Year.

  29. I see that you are in denial again in this comment Paul.Ok I won’t mind to argue on the quantity as action always speak louder than words.So now tell me how MANY people are out there ( Especially Malaysian Kuantan people ) are supporting Lynas ?
    You can talk about the photo about people not showing up for meeting bla bla bla ( despite that I tell you nowadays due to so many anti Lynas groups meetting in small number is nothing as long as some members and commitee members are in )but the fact is people supporting Lynas on the ground is almost equal to zero.That also despite so many PR jobs by Lynas and the Malaysian government who also get some local scientist to support their cause and get coverage in the news and media.And you keep saying the numbers are shrinking.Ok let say if I agreed with you what about those supporting Lynas ? I don’t see they are increasing.Come on. Don’t be in a denial mode Paul. YOu are in every groups you know it for yourself. Are you kidding yourself ?
    So you claim the anti Lynas are only in small number but what about those support Lynas ?Hehe… I no need to mentioned it. You are in the Fact about Lynas group and Lynas Malaysia and you know better. Stop denying will you ? You are making me laugh.Want to talk about commenting numbers ? I am sure you can count all the commentators in all the groups and and see how many support and how many are anti Lynas. The community are well informed ? Who are you kidding ?
    Despite all the PR jobs and supported by the Malaysian government and media Lynas still cannot get their message pass through to the community.

  30. LOl. See Paul? You are in denial again.Are you sure that I am only the voice of dissent ? Come on Paul. You are in all the group.Why are you denying it ? And what sin that I had commited by representing the voice or dissent ? You keep repaeting that the voice of disdsent is in small number but denying the fact that the support of Lynas or more lower to the extend it didn’t increase at all.
    Ok let’s talk about MOSTI.I don’t see any amateurity in Nick Curtis in failing to understand the need to inform his sharesholder.I am sure he was well inform before making this announcement.And heaven sake he has been very consistent in his speech about the schedule and the fact is he has spoken numerous times.The problem is he is most likely played out by the government and MOSTI in trying to delay the operation of the plant. ( Sometimes you can see his anger when he speak ).The reason is ? Not about the confidence that you mentioned. It is more about the government survival in politic.My bet is still on if you accepted it.
    Now about the AELB. The submission is satisfactory huh ? First when the public question him why take so long for the waste management plamn they say they haven’t ( And please this is all over the news even in the mainstream media. Find it yourself )ANALYZED it ye. ( Never mention about how many times of submissions ). After public pressure again they finally admited they had analysed it and had rejected it three times.What you call this flip flop and incompetence agency doing as looked at the reviwe much longer are really crap.Just see when they announce the license. As I said my bet still on if you accepted. Nothing harm for an apology right Paul? I wiull be man enough to apoligise if I am wrong.

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