KUALA LUMPUR: The Ministry of Natural Resources and Environmental Sustainability has ruled out establishing a single entity to regulate Malaysia’s rare earth elements industry.
Acting Minister Datuk Seri Johari Abdul Ghani cited constitutional provisions and objections from state governments as key reasons for this decision.
Several states had raised concerns during engagement sessions, viewing the proposal as an attempt to nationalise state-owned mineral resources.
“Petroleum resources outside state waters are managed differently from land matters, which fall under state jurisdiction,” he told the Dewan Rakyat when winding up the 13th Malaysia Plan debate for his ministry today.
He cited the Federal Constitution’s Ninth Schedule (State List), which gives states authority over mining permits, leases and licences.
Johari also dismissed claims that Malaysia had offered to supply REE, raw or otherwise, exclusively to the United States as leverage in trade tariff talks.
“This was already clarified by the Investment, Trade and Industry Minister (Tengku Datuk Seri Zafrul Abdul Aziz) on Aug 7.
The tariff discussions did not involve any commitment to supply REE,” he said.
On negotiations with China, Johari said discussions are currently focused on strengthening bilateral cooperation to develop Malaysia’s REE industry across the full value chain, including the setting up of processing plants.
“It’s still early and China wants to see if our REE can be converted into the downstream products they need.
No formal talks are underway regarding any buyback of processed REE,” he said. – Bernama
