Bangkok: Following the signing of a Memorandum of Understanding (MOU) on rare earth minerals with the United States, questions arose in Thai society about whether the decision was worthwhile or a risk to the country. The Thai government clarified that the MOU is an opportunity to open up avenues for trade negotiations, allowing certain Thai products or services to receive special privileges, including tax exemptions or reductions. This is considered a negotiation strategy. Environmental scholar Asst. Prof. Sonthi Kotchawat analyzed the impacts and hidden risks, particularly in the environmental and national interest dimensions.
According to Thai News Agency, Dr. Sonthi pointed out that the US’s interest in Thailand and ASEAN countries stems from the trade conflict with China. The US previously imposed a 100% tariff on Chinese goods, prompting China to retaliate by imposing a 125% tariff on rare earth minerals exported to the US and suspending the export of seven rare earth minerals. Thailand is seen as a connecting point between Southeast Asia and the Indo-Pacific and an alternative to manufacturing sources in China. Vietnam has the 6th largest mineral reserves in the world, while Thailand is ranked 12th in the world, and Myanmar also has relatively large mineral reserves.
Although the United States has the world’s seventh-largest reserves of rare earth minerals (1.9 million tons), it has chosen not to mine or extract them domestically due to concerns about environmental impacts. Instead, the United States mines the minerals and sends them to China for purification, as China has superior extraction technology. When the United States lost its bargaining power, it had to hasten to sign contracts to find reserves in ASEAN countries.
The MOU that Thailand has with the United States has several issues that make people worried that Thailand may be at a disadvantage. The MOU gives the US the right to analyze, expand the area, and define the coordinates of rare minerals, and if minerals are discovered, Thailand must notify the US first. There is also an expectation that the US will receive investment rights from the Thai government before anyone else. Although the MOU states that it can be cancelled at any time, it is attached that projects that were agreed upon before the MOU was cancelled must be upheld and continued, creating a feeling that Thailand may be at a disadvantage.
Dr. Sonthi highlighted the serious risks posed by the mining and processing of rare earth minerals. Rare minerals are often found in granite and accumulate in eroded rock layers in Watershed Class 1 areas, which are areas of abundant forest. A major problem with rare earth minerals is that the waste left over from extraction contains radioactive materials such as polonium and ‘millenium.’ If these radioactive wastes contaminate groundwater or surface water, severe impacts will occur. Currently, Thailand does not have a clear method for dealing with radioactive waste.
What most Thais may not know is that Thailand was the world’s fourth-largest producer of rare earth minerals last year, producing 13,000 tons, on par with Australia and Nigeria. This production is not from mining in Thailand, but from foreign companies importing rock to process in the country to produce magnetic powder, a key component of EVs and electronic devices. This processing activity is carried out quietly, with no one knowing how the pollution or waste from the factory is managed.
Dr. Sonthi emphasized that although the MOU has already been signed and cannot be changed, the government must demonstrate sincerity and be fully prepared. The government should explain both the pros and cons of the MOU in plain language and disclose all information. The Department of Mining and related agencies must prepare principles and laws to reduce impacts. Destructive mining methods must be prohibited because they will cause contamination of groundwater. Extraction must be done in a closed system and have a clear pollution treatment system.