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Listed on the SGX Catalist Board, Southern Alliance Mining is an established producer of high-grade iron ore products in Malaysia. In April 2023, Southern Alliance Mining signed two memorandums of understanding (“ ”) to acquire stakes in ion adsorption clay rare-earth mines in Malaysia. This will be done via a 40% stake in MCRE Resources Sdn Bhd and a 100% stake in Paramount Synergy Sdn Bhd. Potentially, Southern Alliance Mining will become the only rare earth mining company listed in Singapore post-acquisition. MCRE operates the first ion adsorption clay rare-earth mine located in Malaysia, with an estimated rare-earth oxide of 33,000 tonnes, based on its environmental impact assessment report. It commenced operations in 2022 and exported its first batch of rare-earth carbonate in February 2023. Paramount, on the other hand, is in the exploration phase. It has been appointed to carry out exploration activities for REEs in an area measuring 1,863 hectares in Johor, Malaysia. Here are 10 things investors should know about rare earth elements –  and how Southern Alliance Mining can benefit from the acquisitions. REEs are a group of 17 chemically similar metallic elements that are growing in prominence due to their wide application in technological devices, semiconductors and the renewables sector. Some of the most well-known REEs are Cerium (CE), Lanthanum (La), Neodymium (Nd), Praseodymium (Pr), Samarium (Sm) and Yttrium (Y). They are not actually rare, and some of the elements such as lanthanum and cerium are relatively abundant. The term “rare” refers to the fact that they are difficult to economically mine because they are not often found in concentrated deposits (i.e. within other minerals). Rare-earth elements have unique magnetic, luminescent, and electrochemical properties that make them essential in a wide array of hi-tech products. They are necessary components of more than 200 products, including smartphones, computer hard drives, screens and televisions, electric and hybrid vehicles, as well as solar panels and wind turbines. They are also used in defense applications such as electronic displays, guidance systems, lasers, and radar and sonar systems. Geologically, rare-earth elements are found in two forms. The first type of rare-earth elements are generally known as mineral-type rare earths, and are found together with other host minerals such as iron ore or tin ore. This type of rare earths mainly contain light rare earths and is more abundant. The main sources of these rare-earth elements are found in China, United States, Australia, Russia, India, and some African countries. The second type of rare-earth elements are generally known as ionic-clay rare earths. They are found in the form of ionic clay, which results from the weathering of REEs-rich granite over millions of years. Unlike mineral-type rare earths, ionic-clay rare earths are not as abundant, but they contain more heavy REEs such as Terbium (Tb) and Dysprosium (Dy), which are important for high-strength magnets used in the production of wind turbines and electric vehicles. As mineral-type rare-earth elements are more abundant and have higher head grades, the most conventional mining method is open-pit mining. For ionic-clay rare earths, which have significantly lower head grades and are found in weathered granite zones, a less destructive mining method known as soluble mining is used. This method, adopted via in-situ leaching, was pioneered by China and is commonly used in the Southern China mines. Outside China, ionic-clay rare earth mines can be found in Myanmar, Laos, and Malaysia. While China currently supplies over 85% of global rare-earth elements, Malaysia is emerging as a player in the field of rare-earths. The Malaysian government has identified the following states with strategic potential for non-radioactive rare earth elements (NR-REEs): Johor, Kedah, Kelantan, Melaka, Negeri Sembilan, Pahang, Perak, Sarawak, Selangor, and Terengganu. The country is focusing on developing these resources to capitalise on growing global demand while addressing environmental and safety concerns. Although rare-earth elements are not highly toxic substances, the mining and production processes involved can pose environmental and health risks if not properly managed and regulated. Certain soluble forms of rare earths exhibit moderate toxicity levels, necessitating ongoing research into their potential impact on human health and ecological systems. Responsible mining practices are therefore critical. Practices such as proper handling protocols, recycling initiatives, and the continual advancement of sustainable mining technologies can be crucial for mitigating the risks associated with rare-earth extraction and processing. Generally, most human activities will affect the environment, and the issue is the severity of these impacts. The mining of rare-earths is no exception. However, there are measures to mitigate the damage. One way is to use methods, such as In-Situ Leaching (ISL), which do not involve massive land clearing compared to conventional open-pit mining. In-Situ Leaching involves dissolving the rare-earth elements underground with a weak acid solution, then pumping them to the surface for processing. This is a less destructive method that can help reduce environmental impact. Rare-earths are valuable and strategic minerals that aligns with Southern Alliance Mining’s strategy to venture into high-value minerals mining and diversify earnings stream from its existing  iron-ore mining operations. In addition, both companies that it is acquiring a stake in, MCRE and Paramount, use less disruptive in-situ leaching mining, which has a lower carbon footprint and aligns with Southern Alliance Mining’s ESG considerations. MCRE has already begun the global export of rare-earths, and the acquisition of this operational mine will strategically position Southern Alliance Mining as a key producer of rare-earths in Malaysia and potentially Asia (excluding China) in the future. MCRE is pioneering the application of groundbreaking mining techniques to extract non-radioactive rare earth elements in Malaysia via the In-Situ Leaching (ISL) method. Since this method does not involve open-cut mining operations, it helps preserve the natural landscape and maintains an overall low carbon emission footprint, offering a less invasive alternative to conventional mining. MCRE’s commitment to rigorous environmental management protocols exemplifies an unwavering commitment to safeguard Malaysia’s rich biodiversity. Through the meticulous implementation of sustainable mining methodologies, MCRE has firmly established itself as an industry leader, setting a benchmark for responsible and ethical resource extraction practices. Malaysia’s rare-earths industry is expected to contribute RM9.5 billion (US$2.03 billion) to the country’s gross domestic product (GDP) in 2025, and create 7,000 new jobs, according to the country’s Prime Minister Anwar Ibrahim. Malaysia has over 16 million tonnes of non-radioactive rare earth elements that the government has valued at around RM800 billion, according to Natural Resources and Environmental Sustainability Minister, Nik Nazmi Nik Ahmad. Globally, the rare-earths market was valued at US$14.1 billion in 2023, and is projected to expand at a CAGR of 10.4% between 2024 and 2033. The Asia-Pacific region held a commanding 57.1% market share, with an estimated 11.5% CAGR . . . . It's free! Don't miss out on the latest financial market movements. FSMOne aims to help investors around the world invest globally and profitably, follow for bite-sized finance analyses and exclusive happenings. is not a recommendation from us to buy or sell any of these stocks. For investors who are keen to find out more, you should continue researching about them before making your investment decisions.