Penang’s REE valued at RM100 billion, reveals sampling studies; states await guidelines

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AN agreement on the formulation of guidelines for the extraction of Rare-Earth Elements (REE) has been made at the Federal level.

 

However, the ministry involved has not disseminated these guidelines to the states, says Chief Minister Chow Kon Yeow.

 

In his winding-up speech on the Penang Budget 2024 at the Penang Legislative Assembly, Chow said the Ministry of Natural Resources, Environment, and Climate Change has approved a pilot project in Perak, specifically in the Kenering area of the Gerik district.

 

“The implementation of this project has undergone several pre-implementation processes, including conducting an Environmental Impact Assessment (EIA).

 

“Guidelines and various consultancy conditions have been established through collaboration between the Federal and state governments.

 

“The National Mineral Council and the National Land Council (NLC) have met because, at the Federal level, there was agreement on the formulation of guidelines for the extraction of REE.

 

“However, the ministry has not yet disseminated these guidelines to the states, and it is possible that the necessary conditions are still being refined,” he said today.

 

Chow added that the standard operating procedure (SOP) provides a comprehensive explanation of the mining activities and the procedures that must be adhered to so that the activities comply with relevant legislation and safety requirements.

 

“These procedures are established to maintain the sustainability of the mining industry, the safety and well-being of the people, and the preservation of the environment,” he said.

 

Chow highlighted that sampling studies conducted by the Department of Minerals and Geosciences (JMG) at various locations in Teluk Bahang, Balik Pulau, and Nibong Tebal found that Penang also has REE, estimated to be worth RM100 billion.

 

“The State Secretary’s Office is in discussions with the JMG to seek advisory services.

 

“Currently, Penang has the Mineral Enactment (Penang) 2001, which came into effect on Jan 1, 2006.

 

“However, to facilitate the implementation of this Enactment, Regulations for Minerals in Penang need to be established, including the determination of fees, leases, and royalties, as well as methods for collection.

 

“Other provisions include the determination of compoundable offences and methods for compounding offences, remission permits, rebates, or deferrals of lease and fee payments, the allocation of powers and duties of officers under the Enactment, the establishment of the content of any feasibility study, recovery plan, measurement, plan, report, and any other estimates necessary for the Enactment.

 

“This also involves the determination of unauthorized activities in any mineral reserve and provisions for any other matters that generally enforce the provisions of the Mineral Enactment,” Chow added.

 

 

Story by Christopher Tan

Pix by Muhamad Amir Irsyad Omar