State govts now allowed to do explorations for rare earth

State governments are now permitted to conduct early explorations for rare earth elements (REE), following the existing standard operating procedures (SOP) for rare earth and mineral mining.

This was decided at the first meeting of the committee to coordinate mineral industries development yesterday.

"The committee will look at the need to create a national framework to develop the minerals industry, for example, REE.

"In reference to Prime Minister Anwar Ibrahim's speech when tabling the 12th Malaysia Plan mid-term review, state governments are now allowed to conduct early exploration for REE using the SOPs for non-radioactive REE and other existing policies on minerals," National Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad said in a statement.

This comes as Kedah Menteri Besar Muhammad Sanusi Md Nor is being investigated by the MACC over a rare earth mining project in the state.

Sanusi was also present at the meeting yesterday, alongside the menteris besar of Perak, Terengganu and Perlis.

Sabah and Sarawak deputy chief ministers and state executive councillors in charge of minerals, and related federal agencies were also in attendance.

The meeting was meant to coordinate issues of minerals management between the state and federal governments.

Kenering pilot project audit reviewed

Nik Nazmi said the meeting also reviewed the audit report of the rare earth mining pilot project in Kenering, Perak.

However, the details of the audit and whether the pilot project was successful were not revealed.

The project is piloting the use of in-situ leaching to extract rare earth from underground.

The method is deemed more environmentally sustainable compared to open mining, as it allows for minimal clearing of surface vegetation.

However, there is still a risk of groundwater pollution as it involves pumping chemicals into the ground to extract the minerals.

The lucrative rare earths sit mostly under the country’s rainforests, which are precious carbon sinks.

However, the minerals can provide a valuable income stream for state governments.

Develop full supply chain

Meanwhile, Nik Nazmi said the National Land Council meeting on Sept 12 also decided that a new national minerals policy will be formulated to strengthen the full supply chain.

"The government will develop a policy to ban the export of raw rare earth minerals to avoid exploitation and loss of resources," he added.

This will include strengthening legislation and the industry eco-system, improving the industry supply chain, improving technological use, empowering local human resources and prioritising environmental, social and good governance (ESG) principles in the minerals industry.

To do so the ministry will study how to develop different sections of the supply chain.

"This is so the economic potential is fully realised and the industry is not reliant on exporting raw materials," the minister said.

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