Indonesia seeks technology investors to develop rare earth elements industry

The Indonesian government is seeking investors in the technology sector to help extract rare earth elements (REE), as the country has targeted to develop the REE industry in the coming years.

The country's state-owned mining company PT Timah has signed a cooperation agreement with the Canada Rare Earth Corporation to find the right technology to utilize, but has also expected to get a technology transfer from China.

"Maybe the easiest option is to get technology from China, because the country's technology capability in exploring REE has been proven," the company's President Director Achmad Ardianto said Monday during a hearing with the Indonesian parliament.

As of now, PT Timah, which has conducted cracking from monazite, the mineral that contains REE, up to 300 tons, has targeted to reach 1,000 tons of production in 2022, which needs advanced technology to accomplish, Ardianto said.

The ministry's Director General for Metal, Machinery, Transportation Equipment and Electronics Industries, Taufiek Bawazier, said in the same hearing that Indonesia is currently preparing a roadmap to develop the RRE industry as the metal is considered as a strategic alternative to support the green energy transition.

Due to the limited technology, Indonesia could have only found seven locations that have potentials for REE exploration, including those in provinces such as North Sumatra, Bangka Belitung, West Kalimantan and Central Sulawesi, according to the ministry. ■