Prime Minister Anutin Charnvirakul has tried to assure the Thai public that they need not be overly concerned about the Memorandum of Understanding (MoU) on rare earth elements, signed between Thailand and the United States at the ASEAN Summit in Kuala Lumpur on October 26.
He explained there are still many mineral reserves in Thailand which are yet to be exploited for use in production processes, the reduction of costs or to improve the quality of goods, adding that the US wants to have a role in developing these minerals with Thailand.
He said he welcomes the US offer, because Thailand has many as yet unexplored and unexploited minerals, but lacks the technology and knowhow for their extraction and development.
He maintained, however, that everything must be done in accordance with the Thai laws and regulations and under the principle of good governance.
Moreover, he pointed out that the MoU is not a legally binding document and can be discontinued by either party in the future, if it feels that the tenets contained therein are no longer beneficial.
The document is called ‘the MoU between Thailand and US concerning cooperation to diversify global critical minerals supply chains and promote investment’.
It is intended to:
• Strengthen cooperation between the two countries on critical mineral supply chain development and expansion
• Promote trade and investment in critical mineral resource exploration, extraction, processing and refining
• Promote recycling and recovery
• Encourage investment that supports domestic value addition and processing industries, rather than solely exporting raw materials
• Support the transition to open, efficient, secure and transparent critical minerals and rare earths markets to improve the strength, security, and prosperity of critical minerals and rare earths supply chains to the US and Thailand
Meanwhile, Industry Minister Thanakorn Wangboonkongchana said today that the Cabinet has already acknowledged the signing of the MoU. He explained that the signing does not mean, however, that Thailand has a lot of rare earth elements yet to be unexplored or extracted.
Citing the reports from the Department of Primary Industries and Mines, Thanakorn said that Thailand has some rare earth elements, but they are scattered across a wide area and are low in density, which is not viable for commercial mining.
He claimed that Thailand imports rare earth elements for processing and re-exports more than 13,000 tonnes of them after processing, adding that the country has been benefiting from rare earth elements by being a focus of investment in EV batteries and semi-conductors.
