This article first appeared in The Edge Malaysia Weekly on August 19, 2024 - August 25, 2024

The demand for rare earth elements (REEs) and critical materials is rising owing to the energy transition. The manufacturing of solar photovoltaic panels and electric vehicles, and the setting up of wind farms require more of these minerals than the fossil fuel-driven energy sector.

This raises concerns about the effects of mining for these minerals in environmentally sensitive areas (ESAs) and native customary land.

For example, in 2021, Orang Asli villagers from Kampung Pos Lanai, Pahang, protested a planned rare earth mining project in their claimed ancestral forest. They were concerned that the mining process would cause deforestation and pollute the rivers, which are the source of water for the villagers.

One of the non-governmental organisations that has been actively researching the potential impact of rare earth mining is Sahabat Alam Malaysia (SAM).

Conventional open-cast mining and in-situ leaching are the most common methods for mining rare earth, and both present serious environmental and social health impacts, says Meenakshi Raman, president of SAM. Open-cast mining involves land clearing, while in-situ leaching could increase the risk of groundwater pollution.

More rare earth mining is expected in Malaysia, owing to the high demand. Illegal mining has been reported in Perak and Kedah, and state governments have been conducting studies to explore the potential of REEs. The Academy of Sciences Malaysia published a blueprint to establish a rare earth-based industry in Malaysia, identifying it as a new source for economic growth.

Additionally, the National Advanced Materials Technology Roadmap 2021-2030 identified REEs as part of the advanced materials poised to evolve the manufacturing industry.

The question is, can the negative impact of REE mining be avoided? And are alternative solutions that are less damaging available?

SAM is urging the Ministry of Natural Resources and Environment Sustainability (NRES) to lead the research and development (R&D) work on REE alternatives, alongside the Ministry of Energy Transition and Water Transformation, the Ministry of Science, Technology and Innovation and the Ministry of Economy.

REE alternatives should also be part of the consideration when forming these national strategies, SAM adds, to replace the need for mining, especially in mineral-rich ESAs and native customary land.

“What might seem like an attractive business for Malaysia to cash in on requires deeper assessment and in-depth research before concluding that this is good for the country. A genuine cost-benefit analysis is necessary, especially in relation to mining in ESAs, as a trade-off in favour of mining will affect the conservation and protection of our long-term sustainability and needs in terms of ecosystem services provided by our forests and biodiversity,” says Meenakshi.

According to SAM, although there are no direct substitutes for REEs, viable alternatives to replace permanent magnets that are widely used in wind turbines and electric vehicles should be considered.

For instance, Renault SA has introduced the REE-free Zoe model. These are for small urban cars that do not need extended driving ranges. Mahle, a German parts supplier, has also developed a new technology for electric vehicle motors that can operate without magnets or REEs.

Tetrataenite could also be a replacement for REE magnets, according to research by a team of scientists from the University of Cambridge.

“The alternatives come with their own set of challenges, including resulting in more mining of nickel and iron ore in the example of tetrataenite or other unintended consequences, such as driving up the bauxite extraction for REE reclamation. In any case, Malaysia needs to weigh these factors carefully,” says Meenakshi.

Providing incentives for state governments to conserve forests and sensitive ecosystems should be the foremost step to be taken, she adds. This is to alleviate the pressure on state governments that are dependent on the exploitation of forests and other natural resources for income.

At this juncture, as long as there is demand for REEs, there will be mining, says Tham Siew Yean, a visiting senior fellow at the ISEAS-Yusof Ishak Institute and emeritus professor at Universiti Kebangsaan Malaysia.

According to the Malaysian Investment Development Authority, Malaysia is gearing up to be a REE powerhouse and has been promoting the production of advanced materials, which include REE magnets, under the Promotion of Investment Act 1986. Lynas Malaysia Sdn Bhd produces rare-earth oxides, carbonates, oxalates and carbonites in Gebeng, Pahang, at a total capacity of 22,000 tonnes per year.

“I don’t think you can stop people from mining for [REEs] because [they are] a valuable commodity. But how do you do it in a sustainable fashion? I say you have to do it with transparency, accountability and governance,” says Tham.

“From a manufacturer’s point of view, users will always prioritise the cost. If we are seeking [REE] alternatives, from a company’s point of view, how would it influence [their] bottom line?”

Thus, a balanced approach is needed. Datuk Sia Hok Kiang, executive chairman of Malaco Mining Sdn Bhd, says if disturbance in a land due to mining has occurred, the yield has to first be maximised. “Try to maximise the amount of material you can take from that one acre [that is being mined]. Do not do [it halfway] and then destroy another one acre. Maximise it and then after that, you [find] ways and means to rehabilitate [the land],” he says.

To rehabilitate the land, Sia recommends working out the total rehabilitation costs that are to occur at the end of the mining process.

“Mining activities [and their impact] need to be contained. [As a mining company] you want to herd your [chemical solution] to a target collection area. You don’t want the [chemical solution] to go haywire and contaminate the [surrounding] groundwater,” he explains.

“However, all these involve concerted R&D work. If a mining company or mining contractor has limited capital or has little knowledge of science, all they want is to quickly hit and run. They don’t care about the environment. These are the people who could cause damage to mining. So, this kind of mining must be done by a responsible company with proper scientific knowledge.”

Sia also notes that ongoing R&D needs to continue to evolve chemical mining to ensure various alternatives are researched and implemented. This is to enable a sustainable supply of REEs without causing environmental disruption.

He says less harmful chemicals need to be used to extract REEs. He provides an example of how cyanide is used in gold mining. This can cause pollution, as cyanide is poisonous and has disastrous effects on the environment. Glycine, an alternative solvent to gold, can be used instead and will be less harmful to the environment.

However, no matter where the journey of REEs leads, the only way to ensure the environment is preserved in the event REE deposits are found in ESAs is to forgo these areas altogether, emphasises Meenakshi.

“Any claim of ESG-compliant, responsible and sustainable mining is considered greenwashing if the government, the mining companies and the financial institutions are not able to forgo these mineral-rich ESAs or native customary land. [They should] earmark these areas as a no-go zone,” she says.

To replace the need for mining, recycling could also be an answer, says Meenakshi. “Currently, the recycling rate of REEs is still very low and one of the reasons is that collection and disassembly of REE-containing devices for recycling remain a barrier,” she explains.

E-waste recycling centres are very much available to fulfil this task. For instance, Secondlife Asia Sdn Bhd aims to reduce electronic waste and foster a circular economy by repairing damaged devices. REEs are a necessary component for digital devices.

The company also provides tips to prolong the use of devices by maintaining their screen and preserving the device’s battery. 

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