SOP for Rare earth mining approved by Negri Sembilan

SEREMBAN: The Negri Sembilan government has approved the standard operating procedures (SOP) for mining of rare earth elements (REE) in the state which include making it mandatory for mining companies to enter into joint ventures with Mentri Besar Inc (MBINS).

Mentri Besar Datuk Seri Aminuddin Harun (pic) said collaboration with the state corporation was necessary among others to allow the state authorities to effectively monitor and control REE mining.

“We want to make sure there are no adverse effects to the environment, plots surrounding the mining area and also that every aspect of the law is strictly adhered to.

“This is also to ensure the state gets revenue from the mining activity,” he told reporters after chairing the state exco meeting at Wisma Negri.

Aminuddin said a joint venture will also ensure that the state gets revenue in the form of royalty from REE mined on private land.

He said state industrialisation committee chairman Teo Kok Seong will make a working visit to China this month to visit plants processing REE.

Aminuddin said the state government will also allow foreign companies apart from those in China to bid for REE mining jobs in the state.

“However, they will have to present their mining methods to our team before they are allowed to do so,” he said, adding that based on studies carried out so far, Jelebu and Kuala Pilah were two districts with huge deposits of REE in the state.

In September last year, Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad said the Cabinet had approved REE mining SOP to among others ensure that the exploitation of the mineral products was sustainable.

He had said that one part of the SOP focuses on his ministry and the Department of Minerals and Geoscience Malaysia while another part was to develop it at the intermediate and downstream levels and this involved the Ministry of Economy, Ministry of Investment, Trade and Industry as well as other related ministries.

Aminuddin said the other SOP approved by the state exco were similar to the ones approved by the ministry and this included not allowing mining activities to be carried out in permanent forest reserves.

Based on a study by the Mineral and Geoscience Department (JMG) under the 11th Malaysia Plan, the country’s mineral resources are estimated to be worth RM4.11 trillion which includes metallic minerals, non-metallic minerals and energy minerals.

From the estimate, REE resources in Malaysia amounted to 15.188 million metric tonnes with a value of around RM741bil and most are found in Kedah, Perak, Terengganu, Kelantan, Pahang, Johor.

Separately, Aminuddin said a company which was involved in the illegal mining of REE in Kuala Pilah has been fined RM500,000.

He said the company paid the compound last month.