16,000 tonnes of rare earth mined illegally

KUALA LUMPUR: About 16,000 tonnes of rare earth oxide were mined illegally in five states in Malaysia and exported to China, says Nik Nazmi Nik Ahmad.

The illegal mining operations were conducted in forest reserves in Sik in Kedah, Lipis in Pahang, Pengkalan Hulu and Kuala Kangsar in Perak, and on privately owned land in the Meranti and Jelebu districts in Negri Sembilan, the Natural Resources and Environmental Sustainability Minister said.

“We are aware of a report from China that some 7,000 tonnes of rare earth carbonate, to produce 3,000 tonnes of rare earth oxide, had come from a legal pilot project in Kenering (Perak).

“We estimate that another 16,000 tonnes of rare earth oxide were extracted in illegal mining operations,” he said when answering a supplementary question by Lee Chuan How (PH-Ipoh Timur) in the Dewan Rakyat.

Lee had wanted to know if the government would come up with a comprehensive plan to attract investors and develop the rare earth industry here.

He cited a report in China which claimed the country had imported 19,081 tonnes of rare earth oxide from Malaysia at a cost of RM975mil.

He pointed out that with 3,000 tonnes coming from Kenering, “the remaining 16,000 tonnes of rare earth oxide from Malaysia were mined illegally”.

Nik Nazmi acknowledged the need for a comprehensive plan and policy to develop the NR-REE industry here.

He said there was now a strategic competition to develop NR-REE with China controlling the industry.

However, he said the United States, Europe, Japan, South Korea and Australia have also expressed interest in developing the NR-REE industry.

“Our stand is that we are open to it,” he said, adding that Vietnam and Myanmar have also begun developing their own NR-REE industries.

He noted that it was crucial to develop the NR-EEE industry to complement the renewable power and electrical vehicle industries here.

Although 10 states in the country have rare earth ore, he said only a few could develop and attract industry players.

Earlier, Nik Nazmi informed the House that there was an existing moratorium on the export of NR-REE which came into effect on Jan 1 this year and was subject to review every six months.

He said that state governments had asked the Federal Government to reconsider the moratorium.

However, he said reminder letters, dated March 6, had been issued to the states, telling them that the policy would remain in force.