Processing rare earth locally carries lots of risks - MP

 

PARLIAMENT | Amid Putrajaya's plan to ban the export of rare earth elements (REE) raw materials, a Pakatan Harapan MP this evening advised Putrajaya to be careful with its decision.

Howard Lee (Harapan-Ipoh Timor) told the Dewan Rakyat that processing REE in the country will bring along its own set of risks and challenges, including potential adverse impact on the environment.

"Handling REE has been closely linked to environmental risks. The chemicals needed to process REE can pose harm if not handled with care.

"There are also potential health risks to the local community. The Bukit Merah incident in the 1980s should teach us the lesson about the reality of handling radioactive materials," Lee said in debating the 12th Malaysia Plan mid-term review, which was tabled by Prime Minister Anwar Ibrahim on Monday.

Lee (above) also urged the government to engage and get feedback from local communities on its move to process the REE before proceeding with any plan.

Conventional wisdom

It was reported that the government proposed to formulate an export ban policy on REE raw materials, to prevent exploitation and loss of resources, thus ensuring maximum returns for the country.

While Lee said the economic potential of REE is undeniable, he disagreed with the government's notion that selling its raw materials always translates into the loss of profits.

"While this argument has its basis, the conventional wisdom is not always accurate.

"(Processing REE) involves other costs including reforestation and cleaning underground water sources that are contaminated, and these sometimes are higher than the revenue that can be generated.

"The government should know where we should stand. Besides, there are many royalty regimes that we can employ (in selling raw materials)," he added.

Main player

According to Lee, there is also the potential that Malaysia will be pressured economically and diplomatically by China, which is the main player in the global REE industry.

"Malaysia is now at a crossroads. The decisions we make today will determine the country's economy, health, environment, and geopolitical position in the future.

"However, the risks that come with it can be quite challenging. If we approach this industry carefully, with vision and commitment, together with inclusivity and sustainability, 'Malaysia pasti boleh' (we can do it)," he said.