French rare-earth specialist Carester has announced plans to develop a rare-earth separation facility in Perak, Malaysia, through a ten-year joint venture agreement with Malaco Mining Group. The initiative, announced on 6 July, is designed to establish additional rare-earth processing capacity while supporting Carester’s broader processing activities in France. The proposed Malaysian facility would have the ability to process approximately 13,000 tonnes of rare-earth material annually.
Joint venture targets rare-earth separation capacity
Under the agreement, Carester will provide its rare-earth separation technology and technical expertise to the Malaysian partner. A portion of the resulting rare-earth concentrate is expected to be supplied to Carester’s processing operations in France.
The partners are also pursuing approvals for in-situ leaching operations in several plantation areas in Malaysia. Planned production would include both light and heavy rare earth elements, including neodymium, praseodymium, dysprosium and terbium.
Permitting remains key development milestone
Carester said the project remains at an early development stage. No project capital expenditure estimate or construction timeline has been disclosed. The proposed operations will require environmental and mining approvals before development can proceed.
The partners’ planned use of in-situ leaching is expected to reduce conventional excavation requirements and limit waste-rock generation, but the approach requires management of potential groundwater impacts and reagent-control risks. Environmental baseline studies and monitoring systems will be required as part of the permitting process.
Facility aims to strengthen rare-earth supply diversification
The Malaysian separation project would provide Carester with access to additional rare-earth feedstock sources while allowing the company to maintain higher-value technical and processing activities within its French industrial platform. The development is particularly relevant for heavy rare earth elements, which are important for permanent-magnet supply chains and remain highly dependent on Chinese separation capacity. By combining overseas feedstock processing with French downstream capabilities, Carester is seeking to create a more diversified rare-earth supply structure.
Strategic agreement requires further investment details
The project currently represents a strategic development agreement rather than a fully committed industrial investment. Further progress will depend on environmental approvals, the quality and consistency of available feedstock, financing arrangements and the ability to establish long-term concentrate supply flows into Carester’s French processing operations. The absence of disclosed capital costs, construction schedules and financing structures leaves the project dependent on additional technical and commercial development before a final investment decision.
