French-Malaysian rare earths project can meet 20% global demand, says minister

KUALA LUMPUR: The rare earths partnership between French firm Carester and local mining company Malaco Mining Sdn Bhd could eventually meet 15% to 20% of global heavy rare earths needs, French minister for foreign trade and economic attractiveness Nicolas Forissier said.

Forissier said production would be split between the upcoming rare earth separation plant in Perak and Carestar’s facility in south-west France.

“This will allow us to have 15% to 20% of the rare earths needed on the world market,” he said at a press conference, adding that it could also lead to more jobs in Malaysia.

Yesterday, Carester announced plans to build a rare earth separation plant in Perak as part of its 10-year joint venture with Malaco, which includes the transfer of rare earth processing technology from the French company to its Malaysian partner.

Forissier said Japan is financing half of Carester’s French facility and is expected to take participate in the Carestar-Malaco venture, making it a three-way partnership.

He also said that rare earths and critical minerals were part of a broader strategic relationship between France and Malaysia, spanning energy, defence, supply chains, artificial intelligence, quantum computing, semiconductors, and aeronautics.

“What we are doing is building a sovereignty partnership, not only a trade partnership,” he said.

France open to missile talks

Asked whether France could step in after Norway revoked an export licence for a missile system intended for Malaysia, Forissier declined to comment on the Norwegian decision, but said Paris was open to discussions if Malaysia wanted to explore alternatives.

“I don’t want to make any comment on the withdrawal of Norway (from the missile deal),” he said, adding that France was ready to answer any questions if Malaysia wanted to engage.

He said any decision would be up to the Malaysian authorities, but noted that France had longstanding defence cooperation with Malaysia and strong capabilities in the sector.

He said France accounted for more than 10% of global defence exports and had reliable technology.

France is believed to be among several countries with manufacturers being considered by the defence ministry as potential replacements for the naval strike missile (NSM) for Malaysia’s littoral combat ships..

Forissier is on two-day working visit in Malaysia, which ends today, as part of France’s commitment to further strengthening its economic partnership with Malaysia.