MPs to hold hearing on Lynas-US rare earths deal

Wong Chen, chairman of the parliamentary select committee on international relations and trade, said Malaysia will support the use of rare earths for renewable energy, but not for weapons.

KUALA LUMPUR: A parliamentary select committee will hold a hearing on July 16 on the US$96 million rare earths supply deal signed between Australia’s Lynas Rare Earths and the US Department of Defence earlier this year, an MP revealed.

Lynas, the operator of one of the world’s largest rare earths processing plants in Malaysia, has faced protests over the four-year deal, with some rights groups accusing it of supplying materials for US-made weapons used by Israel in its war against Hamas in Gaza.

Malaysia has long been supportive of the Palestinian cause and does not have diplomatic ties with Israel.

The hearing is aimed at ascertaining details of the deal between Lynas and the Pentagon and whether it breached any local policies, said Subang MP Wong Chen, chairman of the parliamentary select committee on international relations and trade.

Testimonies will be heard from Lynas representatives, Malaysian government officials as well as environmental groups and rights activists, Wong told reporters.

Its outcomes will be submitted as recommendations to shape Malaysia’s rare earths policy, as the country seeks investments to build its domestic industry, he said.

“What (are these) rare earths for? If it’s for renewable energy, we will be supportive of it, but if it’s for weapons, I think we should say no to it,” he said.

He was speaking after receiving a memorandum from about 50 protesters, including activists from Greenpeace, and the Boycott, Divestment, and Sanctions movement (BDS), who gathered outside Parliament to call for greater transparency and accountability in the rare earths supply chain.