KUALA LUMPUR, Jan 28 (Bernama) -- The Malaysia–France mining project between Malaco Mining Sdn Bhd and French rare earth refining and recycling specialist Carester has entered the pilot plant phase for mining and refining.
The project is progressing well and presents a unique opportunity for Malaysia to expand its existing industrial capacity.
French Inter-Ministerial Delegate for Strategic Minerals and Metals Supply, Benjamin Gallezot, said Malaysia has the opportunity to develop domestic technology to refine both light and heavy rare earths, which could then be utilised downstream in the magnetic sector.
“This is a key project, and one of the objectives of our visit was to engage with various Malaysian authorities to establish all the necessary conditions to ensure that the agreement signed last year, under the supervision of both our Prime Ministers, is fully successful,” Gallezot told a press conference today.
On July 4, 2025, Prime Minister Datuk Seri Anwar Ibrahim and former French Prime Minister François Bayrou witnessed the signing of a Memorandum of Understanding between local mining company Malaco Mining and Carester during Anwar’s official visit to France.
Gallezot, who is also an adviser to the French President on Strategic Minerals and Metals, said that given the quality of Malaysia’s rare earth resources and the developing midstream refining capabilities of both companies in Malaysia, the downstream magnet manufacturing sector is expected to grow significantly in the country.
While a French company is involved in the upstream and refining stages, he noted that the downstream magnet sector does not necessarily require French partners, as several European companies have also expressed interest.
“Japan is also very interested in the project here in Malaysia, and we are having discussions with the Japanese government.
“So I am very confident (in the success of this project), considering the quality of Malaysian rare earth resources, the midstream refining and downstream capabilities we are creating, hence, we can successfully establish the magnet manufacturing sector,” he said.
He added that Malaysia has the necessary technical experience, a quality industry base, and the capacity to scale up (operations) in this downstream market.
“We are not directly involved in this part at the moment, but we are very happy. I know that French companies looking to diversify will have part of the magnets made in Europe, parts produced here in Malaysia.
“And we would also be very happy to enter into discussions with a magnet manufacturer that wants to invest here,” he added.
Gallezot said France’s interest in this cooperation goes beyond rare earths as the country also wants to propose developing collaboration with Malaysia in other fields.
“Malaysia is, and can continue to be, a very important strategic partner for Europe and France in the economic sector, in an environment where diversifying the supply chain and opening new opportunities for trade and economic cooperation are key priorities,” he added.
France remains one of Malaysia’s top five trading partners within the European Union. In 2024, bilateral trade totalled RM15.95 billion (US$3.63 billion). For the period between January and May last year, bilateral trade amounted to RM6.26 billion (US$1.49 billion).
-- BERNAMA
