KUALA LUMPUR – 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.
He said this openness extends to all, provided they adhere to Malaysia’s policies regarding the development of the industry.
“Whether these players come from China or Western countries, Malaysia is open to their involvement,” he said in response to a supplementary question from Suhaizan Kaiat (Pulai-PH) during the question-and-answer session in the Dewan Rakyat today.
Suhaizan asked if Malaysia possessed local expertise for REE extraction and if there were plans to establish a government-linked company for this purpose.
Recognising the importance of establishing a GLC in line with industrial progress, Nik Nazmi said the proposal for its formation would be discussed through the National Mineral Council and state governments, adhering to the existing constitutional framework.
In response to a question from Datuk Ku Abdul Rahman Ku Ismail (Kubang Pasu-PN) on the government’s strategy for developing downstream REE industries, Nik Nazmi said that policy coordination would be conducted jointly with the state governments to ensure mutual benefits for the parties involved.
He said this was important because the country’s REE reserves were estimated at 16.1 million tonnes, as per the Minerals and Geosciences Department’s survey conducted during the 11th Malaysia Plan.
“The value is significant, and without policy coordination, we risk not fully capitalising on it. Moreover, there’s immense potential from upstream to downstream products, especially with the growing automotive industry, including electric vehicles, in our country, which can drive demand for our rare-earth production” he 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, Nik Nazmi said as of January this year, Malaysia exported 7,500 tonnes of rare earth carbonate valued at RM146 million to China and this export generated royalties of RM25.2 million from non-radioactive rare-earth minerals (NR-REE).
Regarding the rare-earth resources in the forest reserves, Nik Nazmi clarified that current policy prohibited mining activities in these areas, which reflects Malaysia’s commitment to maintaining at least 50% of the country’s land area as forest and tree cover.
However, he said during discussions at the National Mineral Council level and a 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 the permanent forest reserves by developing a pilot mining project within them.
“Simultaneously, the ministry has tasked the Forest Research Institute, in collaboration with relevant technical agencies like the Minerals and Geoscience Department 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 permanent forest reserves.
“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,” he said. – March 6, 2024
 resources within the country, said Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad.){kind=link}