Minister: Reviewing law to ensure sustainable rare earth industry

The government aims to enhance the sustainability of the local rare earth industry by examining the Mineral Development Act.

Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad said his ministry will assess the necessity of adjusting the act.

This is to enable efficient oversight of the non-radioactive rare earth element (NR-REE) sector, he said.

“Currently, the law that is guiding us at the federal level is still the Mineral Development Act 1994.

“So, we will look at whether it’s sufficient or not. That is something that we will explore,” he told Bernama on the sidelines of the Future of Mining Asia conference in Singapore today.

Nik Nazmi said it is important for environmental, social, and governance (ESG) aspects to be a top priority from the outset, as the government develops the NR-REE industry in the country.

He explained that while mining exploration falls under the purview of the states, exporting mining products falls under federal jurisdiction – hence both sides need to work together for a win-win partnership.

He said that as REE is being used for products geared towards energy transition, such as electric vehicles (EV), the industries and consumers are more ESG-conscious than ever.

“People want to get real green products. They don’t want to buy an EV where the materials are not being sourced properly. I think that is why it is very crucial that we start this industry on the right footing,” Nik Nazmi said.

He noted that Malaysia aims to grow the industry by leveraging investments and technologies from various countries.

Climate change

On the climate change bill, Nik Nazmi said his ministry is working to ensure a draft can be shared with the public this year as part of the consultation process before being tabled in Parliament.

“There has been a series of consultations with state governments. The first draft is now being finalised, and we will have additional rounds to continue improving it before we share the bill publicly to obtain input from the public on this matter,” he said.

Meanwhile, he said his ministry is working on a carbon credits MOU with Singapore, hopefully to be signed at the Malaysia-Singapore Leaders’ Retreat later this year.

“Discussions have been positive. There are just some minor details that are still being worked out,” he said.

- Bernama

'Good to set up SG4, but need to study global rare earth element market'

PM: M'sia should leverage rare earth industry’s vast potential

Orang Asli fighting for land rights face new enemy - rare earth mining

K'tan to expedite exploration of non-radioactive rare earth elements