The Kelantan state government signed a preliminary deal with Australian mining giant Lynas last week to explore the state’s capacity to supply rare earths to the company’s processing facility in Pahang – the largest rare earths plant outside China.

Lynas’ advanced materials plant in Pahang state currently refines minerals sourced exclusively from its Mount Weld, Western Australia. These include neodymium-praseodymium oxide, as well as heavy rare earths such as dysprosium and terbium – all critical components for high-performance magnets used in electric vehicles, wind turbines and advanced semiconductors.

The new arrangement – described by Lynas as a “significant step” in developing Malaysia’s rare earths industry – could position Kelantan as a major regional supplier. The state government estimates its reserves are worth 125 billion ringgit (US$29.3 billion).

But Kelantan will first need to convince the federal government – led by a rival political coalition under Prime Minister Anwar Ibrahim – to overlook its mountain of outstanding debt and hand out even more financial support or loans to modernise its public infrastructure, critical for large-scale mining and material transport.

“The federal government’s role is crucial for Lynas to finalise the deal [with Kelantan],” said Asrul Hadi Abdullah Sani, a partner at strategic advisory firm ADA Southeast Asia.

The rare earths sector remains highly lucrative, even amid a price slump over the past year triggered by excess production in China, the world’s dominant producer. The allure of high returns has also fuelled illegal mining across Malaysia.

In December, authorities arrested 55 people in separate raids across Kelantan and Selangor states on suspicion of illegally mining rare earth elements such as neodymium, which opened this week on the international market at US$94 per kg (2.2lbs).

Kelantan’s financial woes are well documented. As of 2023, the state owed nearly 270 million ringgit to the federal government, according to the 2024 report by Malaysia’s auditor-general. It repaid only 10.5 million ringgit that year.

Meanwhile, the state’s consolidated fund – the main repository of government revenue – fell more than 40 per cent to 325.5 million ringgit in 2023, down from 570.9 million ringgit the previous year.

https://www.scmp.com/week-asia/economics/ar...ts-way-out-debt

first the trees are gone, next the earth

tap water from teh tarik now infused with radiation

No more banjir , straight gone under the sea lorr

yes yes, please make more job in kelantan

stop the kelantan people from coming to kl, buat menyemak je

lol

they come dig yours, australia got plenty why no dig there
but then again, malaysia doesn't have processing nor refining capabilities

This post has been edited by Avex: Jun 4 2025, 06:33 PM

Rindu LGE plotek lynas

Yea and they will just buy new merc

🤭🍟🍷👀😂

Australia already digging a lot (4th largest producer in REO), but the processing by product is the concern thus why they set up factory here in Malaysia. Most of their raw material also ship from Australia.

https://www.innovationnewsnetwork.com/austr...0REO%20globally.

BTW 2023 news ya

What is the current state of rare earth mining in Western Australia?
Western Australia produces over 28,000 tonnes of rare earth oxides (REO) annually with a value of A$569m (€335m) per year.1 This makes the State the fourth-largest producer of REO globally.

This post has been edited by littlefire: Jun 4 2025, 06:55 PM

Is it Kelantan or some people in Kelantan only. Most likely the latter only getting rich.

Last time kedah said exact same thing.

Tengok sekarang masih miskin lagi

But if you in business selling merc you also support. Lol.

Well, who exactly will be rich?

Like in Brunei is it?

Kelantan’s cronies

Added flavour to the well water supply

Chef kiss

After milo pipe water...now come the red earth...lol... those experienced red earth at kuantan port will understand....

So boleh bayar hutang dah

Apa yang kamik mau
Hak kamik hak kamik
Hak kitak hak kamik

- Sarawak

Kelantan though land always messed with floods n ehit gov

But kelantan n north Terengganu are blessed with rich souls that got gold , fertile land and now even rare earth

Where is Tokong lim