SIBU: The federal government has ruled out establishing a separate national entity to manage and develop the rare earth elements (REE) industry, similar to what was done for oil and gas under Petronas.
Deputy Natural Resources and Environmental Sustainability Minister Datuk Seri Huang Tiong Sii said the decision was made following several discussions with state governments, which opposed the idea as they viewed it as an attempt to nationalise natural resources found within their territories.
He added that Putrajaya also has no intention of introducing new legislation to govern the REE industry, stressing that it would continue to respect the states’ authority to manage land and minerals under their respective laws.
“The National Mineral Council serves as the platform to engage with the states on REE matters, as well as to set the direction and mechanisms for the development of the industry,” he said when replying to Senator Robert Lau during the debate on the 13th Malaysia Plan in the Dewan Negara.
The text was made available via Lau on Wednesday (September 3).
Currently, the mineral industry is regulated under the Mineral Development Act 1994 (Act 525), which encompasses all types of minerals, including rare earth elements.
Earlier, Senator Lau described REE as another “goose that can lay the golden eggs” for the country, with an estimated value of RM1 trillion. He expressed hope that Malaysia would not repeat the mistakes of the oil and gas sector, where resources from Sarawak and Sabah were taken with minimal compensation, handled opaquely, and marred by underhanded tactics.
