'High-growth, high-value': Malaysia’s rare earths industry getting a push, but splitting public opinion too

GERIK, Perak: Mr Ai Chuan Din Chum is aware that his village, Kampung Pong in the northwestern state of Perak, is located in an area that contains many natural resources that he believes has always been eyed by outsiders.

There are about 200 people living in the village, with most of them working as general labourers or in informal jobs. They are also considered critical for the development of so-called green infrastructure like renewable energy sources as well as electric vehicles . He added that a new National Mineral Policy would be drafted to drive the comprehensive development of the mineral industry based on the “principles of sustainability and responsibility”.

Downstream meanwhile refers to the industry that uses the rare earth elements to manufacture products such as super magnets. He added that a set of standard operating procedures for NR-REE mining has been presented and agreed in principle by the Cabinet, but that it would not be made public until a comprehensive policy on the rare earth industry is developed and finalised.

Several tractors and vehicles were also seen at the site, although the actual site of the mining and processing plant however was not visible. The project site covers an area of 5,339 acres on 11 parcels of land, with the in-situ leaching method used to extract lanthanide — a type of rare earth element that is used in the production of optical devices and alloys among others.

“To date, data shows that 5,700 metric tonnes of rare earth carbonate have been produced. Based on the audit conducted, it can be concluded that this SOP is able to regulate rare earth mining activities well,” he said. He also said that until July, the state authorities had received almost RM16 million in royalty payments from the exports of 10 batches of REC to China.

A picture of houses located in Kampung Pong, Gerik, the closest settlement to the site of Malaysia's first pilot “non-radioactive rare earth element” mining project in Malaysia that began operations in March 2022 located in Hulu Kenering, Perak. “There is certainly a need for the government to make fully transparent where the REE resources are located and to impose a ban on mining activities in ESAs.

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