Sanusi thanks govt for picking Kedah for exploration of REE

 

Menteri besar Sanusi Nor hopes that mining of rare earth elements in Kedah can begin by the middle of next year to boost the state’s revenue. (Facebook pic)

PETALING JAYA: The Kedah government has expressed its gratitude to the federal government for selecting the state for exploration of rare earth elements (REE).

Kedah is the second state after Perak to be picked for the pilot project, Bernama quoted menteri besar Sanusi Nor as saying. Extraction approval was granted in August, he added.

Tabling Kedah’s 2024 budget in the state assembly in Alor Setar today, he said the state government had set a 15% royalty rate for REE extracted in the state, starting next year.

He said the Kedah state land administration would ensure REE extraction is a viable source of government revenue for the future.

Sanusi said the minerals and geoscience department had estimated that Kedah had the potential to extract 250,000 tonnes of REE over 10 years. Kedah’s total ore reserves are estimated at 1.2 million tonnes.

Sanusi said the potential revenue from REE will have a huge impact on the state’s economy and hoped this will be managed efficiently and fairly for the benefit of all the people in Kedah.

When met after the tabling of the budget, Sanusi said the state government hoped the REE sector would start generating revenue by mid-2024. - FMT