Kedah Government Optimistic about Rare Earth Element Mining Revenue

New Developments in REE Industry

The Kedah Government is optimistic that the state will begin generating revenue from rare earth element (REE) mining activities starting next year. Menteri Besar Datuk Seri Muhammad Sanusi Md Nor announced that the state government has received applications from three companies interested in collaborating to explore and develop the REE industry in the state.

“The applications are for approval from the government to obtain prospecting and exploration licenses,” said Muhammad Sanusi in reply to Amar Pared Mahamud (PN-Kuah), who wanted to know whether the state government had successfully secured investors to explore and develop the REE industry in Kedah, at the state assembly sitting today.

State-Owned Companies Involved

To boost the state’s economic activities and investment opportunities in the next phase of mining, these companies are required to form joint ventures with state-owned companies (GLCs). This collaboration aims to ensure the successful development of the REE industry in Kedah.

Potential Mining Site Identified

According to Muhammad Sanusi, the state government has also identified a potential site for REE mining that does not involve any forest reserve areas and intends to begin activities at this location. This will help to minimize the impact on the environment and ensure sustainable mining practices.

Cautionary Approach

The state government is proceeding with caution and will implement the REE mining activities in accordance with the standard operating procedures (SOP) for REE exploration set by the Ministry of Natural Resources and Environment (NRES). This approach ensures that the mining activities are carried out in an environmentally responsible manner.

Human Resource Capabilities

On the aspect of human resource capabilities, the menteri besar said that the state government is confident it can meet the necessary requirements, including local expertise, scientists and geologists capable of extracting these elements. “Prior to this, there was a laboratory at Universiti Malaysia Kelantan (UMK) that can conduct analysis, so I believe there is already local expertise to extract these elements, but we do need the equipment,” he said in reply to Ts Dr Mohd Suffian Yusoff (PN-Bandar Baharu), who inquired about the state government’s ability to provide skilled workers for the REE industry.

Conclusion

The Kedah Government’s efforts to develop the REE industry are a significant step towards diversifying the state’s economy and increasing its revenue. With the support of state-owned companies, local expertise, and adherence to environmental standards, the state is well-positioned to become a major player in the REE mining industry.

Frequently Asked Questions

Q: When can we expect the state to begin generating revenue from REE mining activities?
A: The state is optimistic that revenue generation will start next year.

Q: How many companies have applied to collaborate with the state government for REE mining?
A: Three companies have applied for approval to obtain prospecting and exploration licenses.

Q: What is the potential impact of REE mining on the environment?
A: The state government is taking a cautious approach and will implement mining activities in accordance with environmental standards set by the Ministry of Natural Resources and Environment.