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Foreign media said that China's rare earth monopoly began to collapse
China's dominance in the rare earth market is starting to weaken. I've always believed that while China holds the key to rare earth production, it isn't indispensable. Rare earths aren’t actually rare, and if the U.S. truly needed them, it could easily source them from elsewhere. Malaysia presents a different story though. Lynas Corporation intended to set up a rare earth processing facility there, but local residents and their Australian allies protested, claiming it would generate "millions of tons of toxic radioactive waste." Locals took Lynas to court, leading to the suspension of its business license. That decision was overturned last Saturday. Lynas is keen on mining Mount Weld’s resources, which are rich in rare earths, and planned to refine them in Malaysia. Massive public opposition followed, and recently, the court overturned its earlier ruling, allowing Lynas to regain its license. When operational, this plant could produce roughly 20,000 tons of rare earth annually, meeting about 15% of global demand outside China. This demonstrates that China’s monopoly isn’t as impactful as perceived. While China supplies 95%-97% of the world’s rare earths due to its willingness to mine at low costs, attempting to leverage this monopoly could backfire. Restricting exports would only spur competition and dismantle the monopoly rather than strengthen it. The market functions effectively, and monopolies like this one aren’t exploitable when they’re competitive.
Regarding concerns over radiation waste, there’s an important technical detail. The site of Lynas’ new plant was previously a rare earth separation facility, which left some radioactive residue. However, this doesn’t imply a radiation risk for the new plant. The minerals processed today are entirely different from those handled earlier. The older plant dealt with tin slag, containing significantly higher levels of radioactive materials compared to what Lynas will process. Back in the 1950s, regulations overseeing such facilities were less stringent. Nowadays, modern safety standards ensure minimal risk of environmental contamination unless there’s a major mishap.
For those opposing the new plant, either they misunderstand the technical aspects—its radioactive content is far lower than feared—or there might be ulterior motives at play. If Lynas starts operations, it could disrupt China’s monopoly, potentially threatening domestic producers. Years ago, there were attempts to buy Lynas to maintain that monopoly. As a Malaysian journalist, I’d investigate who’s financing these protests and lawsuits. Yet, speculating about conspiracies, whether about lunar landings, 9/11, or JFK’s assassination, remains unfounded.