King buys stake in mining firm expanding into rare earths

The Yang di-Pertuan Agong, Sultan Ibrahim, has acquired a 2.25% stake in local miner Southern Alliance Mining Ltd, which is venturing into the rare earths industry. The acquisition, valued at S$6.1 million (RM19.45 million), was made from the company’s managing director Pek Kok Sam at a price 12% above the previous day's closing price.

Sultan Ibrahim, who has a diverse range of business interests, including real estate, telecommunications, and infrastructure, is currently serving his fifth year as Malaysia's king in a unique rotating monarchy system. Southern Alliance Mining, a Singapore-listed iron ore company, saw its shares rise by 10.5% following the news.

The company has been expanding its operations in the rare earths sector, including a project in Sultan Ibrahim's home state of Johor. They acquired a 40% stake in MCRE Resources in September 2025, which partnered with China Rare Earth Corp for a rare earth mining venture in Perak. The Malaysian government aims to establish itself as a competitive player in the global rare earths industry, attracting foreign mining and refining companies.

The country already hosts Lynas Rare Earths Ltd, one of only two major producers outside China, and several local conglomerates are exploring rare earth projects. Pek Kok Sam remains the firm's controlling shareholder, owning 55.74% of Southern Alliance Mining, and the transaction did not impact the company's management, operations, or strategic direction.