Malaysia has said it did not support rare earths mining in sensitive locations such as permanent forest reserves and water catchment areas. The only exception was granted in 2022 to a pilot mining project aimed at helping to set national operating and licensing guidelines for extraction of the rare earths. REFINERY TO HANDLE BOTH TYPESThe proposed refinery is expected to process both light and heavy rare earths, two Malaysian sources said. A successful deal would make Malaysia one of the few countries with both Chinese and non-Chinese rare earths processing technology, Johari added. (Reporting by Rozanna Latiff and Danial Azhar in Kuala Lumpur and Mei Mei Chu in Beijing; Additional reporting by Ryan Woo in Beijing; Editing by Clarence Fernandez)