Industrial waste from Penang’s semiconductor and electrical and electronics (E&E) sector could be returned to the production line as high-purity gold under a RM70 million refinery taking shape in Batu Kawan. The plant, a joint venture between Japan-based TANAKA Precious Metal Technologies Co Ltd and Penang-based MEP Enviro Technology Sdn Bhd, will be Malaysia’s first 4N precious metal refining factory, The Sun reported.
The term 4N, or “four nines”, refers to a purity level of 99.99 per cent, which limits impurities to 0.01 per cent. Gold is not only for jewellery, Chief Minister Chow Kon Yeow said, describing it as a critical input for the semiconductor industry that is used to plate and connect the tiny components inside the chips Penang makes and ships worldwide.
The facility will sit on about three acres at Batu Kawan Industrial Park with a built-up area of 45,000 square feet. Phase One, MIDA said, carries RM35 million of the investment and will produce 4N high-purity gold and potassium gold cyanide (PGC) for the electronics and semiconductor industries, with commercial operations expected to begin in the first quarter of 2029.
The ceremony at the industrial park was officiated by Penang Yang di-Pertua Negeri Tun Ramli Ngah Talib, with state and federal government representatives, industry players and agency officials in attendance.
TANAKA Precious Metal Technologies chief operating officer Tomoyuki Tada said the plant will strengthen Penang’s capabilities in high-value precious metal recovery and refining and support the region’s E&E and semiconductor industries. The aspiration, Bernama noted, is an international-standard refinery serving customers in Malaysia and across ASEAN.
The project adds high-purity refining to MEP’s existing recovery work. The company opened a RM100 million recovery plant at Bukit Minyak Industrial Park in August 2024 that recovers gold, silver, platinum and palladium from electronic and industrial waste. Under an earlier arrangement, MEP concentrated precious metals in Malaysia before sending them to TANAKA’s facilities in Japan for high-purity refining, a step the Batu Kawan plant brings home.
MEP Enviro Technology said the partnership aims to build a more complete precious metal recycling value chain, from recovery and high-purity refining to returning those materials to the manufacturing supply chain.
Chow said the refinery will keep more economic value in Penang while cutting waste and supporting a circular economy. “That means less mining, less waste, and more value kept in Penang. This is the circular economy in practice, not on paper,” he said. The project also supports the Penang2030 agenda and the National Semiconductor Strategy by strengthening the supply chain for the state’s semiconductor and E&E industries.
Penang remains a leading destination for manufacturing investment. The state drew RM17.3 billion in approved manufacturing investments in the first half of 2026, up 38.1 per cent from the same period a year earlier, part of RM51.3 billion approved across 973 projects nationally that are expected to create 64,555 jobs, according to MIDA figures.
Chow urged local E&E and semiconductor manufacturers to use the refinery. “To every E&E and semiconductor company in Penang, look first to partners here at home. Send your recoverable materials to be refined here. Buy back the gold that was yours to begin with,” he said.
TANAKA has been in the precious metals business since 1885, while MEP was founded in Bukit Minyak in 2005. Chow said Japanese companies have contributed to Penang’s industrial development since the state’s free industrial zones opened in the 1970s.
