KUALA LUMPUR, March 6 — Malaysia welcomes expertise and industry players from around the world to develop rare earth elements (REE) resources within the country, said Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad.
This openness extends to all, provided they adhere to Malaysia’s policies regarding the industry’s development.
“Whether these players come from China or Western countries, Malaysia is open to their involvement,” he said in response to Pulai MP Suhaizan Kaiat’s supplementary question during the question-and-answer session in the Dewan Rakyat today.
Suhaizan asked if Malaysia possesses local expertise for REE extraction and if there are plans to establish a government-linked company (GLC) for this purpose.
Recognising the importance of establishing a GLC in line with industrial progress, Nazmi said the proposal for its formation would be discussed via the National Mineral Council (MMN) and state governments, adhering to the existing Constitutional framework.
In response to a question from Kubang Pasu MP Datuk Ku Abdul Rahman Ku Ismail on the government’s strategy for developing downstream REE industries, he said policy coordination will be conducted jointly with the state governments to ensure mutual benefits for the parties involved.
This is crucial as Malaysia’s REE reserves are estimated to stand at 16.1 million tonnes, per the Department of Minerals and Geosciences (JMG) survey conducted during the 11th Malaysia Plan (RMK11).
“The value is significant, and without policy coordination, we risk not fully capitalising on it. Moreover, there is immense potential from upstream to downstream products, especially with the growing automotive industry, including electric vehicles (EVs), in our country, which can drive demand for our rare earth production,” Nazmi said.
In response to Ku Abdul Rahman’s original question on the progress in REE extraction and development and in addressing concerns about rare earth resources in permanent forest reserves (HSK), the minister said as of January this year, Malaysia exported 7,500 tonnes of rare earth carbonate (REC) worth RM146 million to China, which generated RM25.2 million in royalties from non-radioactive rare earth minerals (NR-REE).
Regarding the rare earth resources in HSK areas, he clarified the current policy prohibits mining activities in these areas, reflecting Malaysia’s commitment to maintaining at least 50 per cent of the country’s land area as forest and tree cover.
However, during discussions at the MMN level and the meeting with Menteris Besar and Chief Ministers, Prime Minister Datuk Seri Anwar Ibrahim instructed the ministry to review and evaluate the feasibility of mining NR-REE in HSK areas by developing a pilot mining project within the HSK.
“Simultaneously, the ministry has tasked the Forest Research Institute, in collaboration with relevant technical agencies like JMG and the Forestry Department of Peninsular Malaysia, to conduct a comprehensive impact study on mining activities of NR-REE, to include areas within and outside HSK.
“Among the areas identified for the study are the pilot project site in Mukim Kenering, the illegal mining site at Bukit Enggang Forest Reserve in Sik, Kedah and the former forest reserve area that was de-gazetted in Labis, Johor,” Nazmi said.
— Bernama
