Chinese experts to help Kedah tap into RM60bil rare earth deposit

 

Kedah menteri besar Sanusi Md Nor says the MoU would allow the companies to explore a 146ha state-owned site.

ALOR SETAR: The Kedah state government has inked a memorandum of understanding (MoU) with a local company backed by Chinese experts to tap into RM60 billion worth of rare earth elements (REE) in the state.

The deal was inked between Menteri Besar Incorporated (MBI) with Jangka Bakat Mineral Sdn Bhd and technical partner Xiamen Tungsten Co Ltd at Wisma Darul Aman today.

While there was no monetary value to today’s MoU signing, menteri besar Sanusi Md Nor said it would lead to the exploration of REE, and the setting up of plants to process them later.

Rare earth is used to make electronic equipment, batteries, super magnets and other sophisticated equipment.

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The MoU will allow the companies to explore a 146ha state-owned site, with an exploration licence to be given out by the state soon.

“It is a historic moment for Kedah’s mining industry, which was previously known for gold and tin. We welcome Xiamen Tungsten and thank them for making REE mining possible in Kedah.

“REE can’t be found just anywhere, but with the blessings of God, the deposit and reserves of these elements are found in Kedah, and they are those that are of high value,” he told reporters.

Sanusi said there would be very minimal environmental impact with no trees felled, but merely pipes being laid underground to melt the rare earth and later extracted via gravitational pull.

He said on the legal front, he was disappointed with the slow pace of the natural resources, environment and climate change ministry in coming up with procedures related to REE mining, causing the state to lose out.

Sanusi said Kedah would exercise its state powers to mine for rare earth, which is within its constitutional rights.

“What’s worse is such REEs are being mined illegally in Kedah. I have asked several times during the national land council meetings, and the answer we get is to wait for the SOP.

“These SOPs should be expedited so we can generate revenue for the state, instead of illegal miners taking them away,” he said.

In 2020, Kedah said it would be looking into tapping RM60 billion worth of REE in the state’s hinterland of Sik, Baling and Ulu Muda.

Parliament was told in 2019 that the country has RM732 billion worth of metal mineral reserves in the form of coal, tin ore, iron ore, gold, manganese, silica sand and kaolin to be explored.

The approximate value of the reserves are – tin 1.3 million metric tonnes; aluminium/bauxite: 169.8 million metric tonnes; copper: 5.85 million tonnes; gold: 115 million metric tonnes; iron ore: 498.6 million metric tonnes; nickel 75 million metric tonnes; and manganese, 5.7 million metric tonnes. - FMT