Raids on illegal mines spotlight Malaysia’s rare earth ambitions

Malaysia’s crackdown highlights the challenges of managing rare earth resources amid rising global demand for green technology

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A Malaysian flag flies at the entry-point to a mining site in rural Pahang state in 2015. Photo: AFP

Published: 11:30am, 17 Dec 2024

A crackdown on illegal rare earth mining in Malaysia, culminating in the arrest of dozens of suspects, has exposed the challenges of managing the country’s vast valuable mineral deposits that are essential for electric vehicles and green-energy technologies.

The Malaysian government estimates its rare earth resources to be worth between 800 billion and 1 trillion ringgit (US$180 billion-US$225 billion), making them a strategic asset and placing it among a small group of countries with significant reserves.

But global demand is so high that an illicit market has boomed in recent years, leading to a surge in illegal mining operations, especially in Malaysia’s poorest states.

Last Wednesday, 55 people were arrested on suspicion of illegally mining rare earth elements (REE) during three separate raids in Kelantan and Selangor states, according to Inspector General of the Royal Malaysian Police, Razarudin Husain.

A Lynas Corp worker walks past sacks of rare earth concentrate waiting to be shipped to Malaysia, at Mount Weld, northeast of Perth, Australia. Photo: Reuters

According to local newspaper Berita Harian, five Malaysians and 41 foreigners were arrested at a mining site in Gua Musang, Kelantan. In Banting, Selangor, six Malaysians and three foreigners were also detained.