Kedah optimistic rare earth mining will be its new source of revenue next year, says Sanusi


ALOR SETAR: The Kedah government is optimistic that the state will begin generating revenue from rare earth element (REE) mining activities starting next year.

Mentri Besar Datuk Seri Muhammad Sanusi Md Nor said 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.

"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).”

He said this 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 on Tuesday (Nov 26).

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.

He also emphasised that 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 Natural Resources and Environment Ministry (NRES).

On the aspect of human resource capabilities, the Mentri 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. - Bernama

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