Penang has signalled it will proceed with caution on any non-radioactive rare earth elements (NR-REE) exploration or mining activities, with the state government vowing to keep environmentally sensitive areas off limits pending thorough assessments.
State Environment Committee chairman Datuk Seri S. Sundarajoo said the growing global appetite for rare earth elements, fuelled by high-technology industries, renewable energy and the green economy, had prompted preliminary studies into NR-REE development in Penang.
However, he stressed that any proposal would face rigorous scrutiny, particularly those concerning forest reserves, environmentally sensitive areas, water catchments and prime agricultural land.
Earlier reports indicated that Penang harbours NR-REE deposits in several hilly areas, including Teluk Bahang, Balik Pulau, Bukit Mertajam and Bukit Panchor.
The sites were flagged during an initial geological assessment by the Minerals and Geoscience Department, with inferred NR-REE resources estimated at 1.7 million metric tonnes and a projected value of approximately US$21 billion (RM93.5 billion).
“The state government, through the Land and Mines Office, has held engagement sessions with technical agencies, including the Minerals and Geoscience Department, Environment Department, local authorities and district land offices, to assess the potential environmental and social impact of NR-REE activities,” Sundarajoo said.
“Among the key considerations are water resources, slope safety and public wellbeing,” he said in his winding-up speech at the state legislative assembly sitting today.
Sundarajoo said the state government was also drafting the Penang State Mineral Regulations in line with the standard operating procedure issued by the Natural Resources, Environment and Climate Change Ministry on 20 December 2023.
He added that all proposals must comply with the Environmental Quality Act 1974, Environmental Impact Assessment requirements and technical conditions imposed by relevant authorities.
On concerns over geopolitical implications and the possible misuse of rare earth elements for military purposes, Sundarajoo said all strategic cooperation involving NR-REE would remain subject to federal policies and regulations.
“Although land and mineral matters fall under state jurisdiction, REE operations in Malaysia are governed by multiple layers of federal oversight, including export controls, national investment policies and enforcement by security agencies,” he added.
He reiterated the state government’s commitment to balancing economic development with environmental protection, national strategic interests and the wellbeing of the people.
NR-REE, particularly those found in Malaysian ionic clay deposits, are valuable minerals essential for modern technologies such as smartphones, high-performance magnets, electric vehicles, wind turbines and other green technologies.
Source: NST
