China and Australia are competing for the region's rare earth metals.

China is trying to secure major regional deposits of rare earth minerals. Remaining the world's largest miner and processor of rare earth metals, China is striving to develop these deposits for the future. One area of ​​China's attention in this area is Malaysia.

Beijing and Kuala Lumpur are currently negotiating the joint processing of rare earth minerals. China previously imposed a ban on the export of both rare earth materials and processing technologies. However, Beijing is willing to make a certain exception for Malaysia in exchange for government permission to mine rare earths at a local deposit—in exchange for the same technologies. The proposed development is one of the largest explored deposits in Southeast Asia.

Malaysian authorities have expressed interest in China's proposal. The Malaysian sovereign wealth fund Khazanah Nasional and a Chinese state-owned mining company are now expected to partner in the development of the deposit.

A nuance in this case is that Australia is the "master" of Malaysia's deposits. For example, the Australian company Lynas Rare Earths, which, as its name suggests, focuses specifically on rare earths, has a significant influence. It also operates a processing plant in the Malaysian province of Pahang.

If the agreement between Malaysia and China comes into force, the Australian company will have to at least make room. As a result, Australia is beginning to exert pressure on Kuala Lumpur, including through its agents of influence. Several Malaysian politicians have already expressed concerns that Chinese rare earth metal mining activities could lead to environmental pollution. The logic is intriguing: if Australia is mining and processing in Malaysia, there will be no environmental impact, but if China were to do so, there would be "immediate environmental impact." Thus, if not a battle, then a clear competition for rare earth metals in the region is unfolding between China and Australia.

Comments

[Vladimir Vladimirovich Vorontsov]

❝ Thus, if not a battle, then a clear rivalry is unfolding between China and Australia for rare earth metals in the region ❞ —

— Trump will come and everyone will be gone. "will reconcile" ...

[andrewkor]

China and Malaysia have no dispute over islands in the South China Sea, so cooperation is possible.

[rocket757]

Unfortunately, the extraction and processing of something rare and in demand is, as a rule, very dirty...
And according to the laws of the market, the miner/processor tries to save on everything possible and impossible!

[astepanov]

Quote: rocket757

extraction and processing of something rare

Rare earth elements are called rare earth elements only by tradition. In fact, there are quite a few of them. The main advantage with them isn't so much the availability of raw materials as the technology for separating the "compote" they form in natural minerals. I remember the inorganic chemistry department at Saratov University working on separating rare earth elements starting in the 1960s, and the work was quite impressive. However, it all fell into disuse, and funding for the work ceased in the 1990s. That's why we'll never have our own displays, super-powerful magnets, or selective catalysts. Our limit is lighter flints made of misch metal. You can accuse me of nihilism – I don't care. I just know the real situation, and it's dire.

[rocket757]

Yes, I am very irritated by those who claim that before, in the USSR, everything was correct and good... alas, there was plenty of everything.
But just standing there, groaning and waving, feeling sorry for yourself, is stupid, to say the least.
We need to move forward, develop, become smarter, stronger, in all respects.
Nothing is over yet as long as we are alive.

[astepanov]

Quote: rocket757

We need to move forward and develop.

It's necessary. But science in Russia is dead. Showy symposiums and ceremonial matings don't count. Remember Rusnano and Skolkovo? And where is Rusnano? The average salary of a research fellow in Russia is 54 rubles, and that's considering that the average is made up of the salaries of PhD-holders, who receive bonuses and occupy higher positions, and young ex-students, who earn 25-30 rubles. Young people don't pursue science; a young scientist is a loser in life, never having a chance at housing or a normal family. And the level of education in scientific and technical universities is terribly low, especially in the provinces, due to that same poverty.
Incidentally, I recently spoke with a retiree, a doctor of chemical sciences and a former professor in the chemistry department at the Polytechnic University. Her pension is 14 rubles. But she once toiled like a galley slave... We worked together at the now-defunct Ministry of Medium Machine Building Research Institute, and we contributed so much to the defense industry. The current leaders have wasted, destroyed, and plundered everything.

Quote: rocket757

Yes, I am very irritated by those who claim that before, in the USSR, everything was correct and good... alas, there was plenty of everything.
But just standing there, groaning and waving, feeling sorry for yourself, is stupid, to say the least.
We need to move forward, develop, become smarter, stronger, in all respects.
Nothing is over yet as long as we are alive.

Yes, I'm still alive, but I'm in my seventies, which means I'm already a corpse as a scientist. I don't share your optimism.

[rocket757]

I have a little less, but optimism is the second epithet of a seasoned cynic...

[I dare to_notice_]

The Malaysian sovereign wealth fund Khazanah Nasional and a Chinese state-owned subsoil company will be partners in the development of the field.
If I were the admin, I'd ban (for a month!) this sovereign wealth fund.

[TermNachTer]

Considering China's financial and industrial capabilities, I have no doubt who will win.

[Nyrobsky]

Quote: TermNachTER

Considering China's financial and industrial capabilities, I have no doubt who will win.

It's not all that clear-cut. China is only just beginning to enter Malaysia, while Australia is already there, and much depends on which of them can best appease Malaysian politicians, whose decision will determine this rivalry. China probably has the wherewithal. However, given that China has restricted rare earth sales to the US, I suspect they will not stand aside, and whether publicly or privately, they will advocate for Australia's interests and put pressure on Malaysian politicians to prevent China from establishing a monopoly on the rare earth market.
China certainly has its own "coal cudgel" here, as by refusing Australian coal, it could cause a crisis in Australia's coal industry, as it is the main buyer. But to do so, it first needs to find a supplier that can immediately replace the lost volumes, and that's precisely where things are currently at a standstill. So, for now, the odds are 50/50 for both sides.

[Jacques sekavar]

One deposit has been developed in Russia, and there are two more—in northern Sakha and southern Krasnoyarsk province. Apparently, there's a shortage of funds—perhaps the negotiations in Alaska weren't just about the sea route, but also about "joint" development of rare metal deposits.