A Malaysian parliamentary committee is scheduled to convene a hearing on July 16 to scrutinize a $96 million rare earths supply agreement between Australia's Lynas Rare Earths and the U.S. Department of Defense. The deal has attracted significant controversy and protests from rights groups.
Lynas, which operates one of the world's largest rare earths processing facilities in Malaysia, has been the subject of demonstrations. Critics, including several rights organizations, have alleged that the agreement could supply materials for U.S.-manufactured weaponry utilized by Israel in its conflict with Hamas in Gaza. Malaysia, a predominantly Muslim nation, has historically expressed strong support for the Palestinian cause and maintains no diplomatic relations with Israel.
Wong Chen, the chairman of the parliamentary select committee on international relations and trade, stated that the hearing aims to clarify the specifics of the contract between Lynas and the Pentagon. The committee will also investigate whether the deal contravenes any Malaysian domestic policies.
Representatives from Lynas, Malaysian government officials, along with representatives from environmental organizations and human rights activists, are expected to provide testimony at the hearing, Wong informed reporters. The findings and recommendations from this review will be formally submitted to inform the development of Malaysia's national rare earths policy, as the country seeks to stimulate investment in its own domestic industry.
"The crucial question is the intended application of these rare earths. If they are designated for renewable energy technologies, we will offer our support. However, if they are intended for military purposes, we believe a rejection would be appropriate," Wong elaborated.
Wong's remarks followed his receipt of a memorandum from approximately 50 protestors, comprising activists from groups such as Greenpeace and the Boycott, Divestment, and Sanctions movement. The demonstrators had gathered outside the parliament building to advocate for enhanced transparency and accountability within the rare earths supply chain.
