Kelantan Expects Two Firms to Start Rare Earth Mining Next Year

Kelantan expects two local companies to start mining rare earth elements (REE) next year, while Kedah is urging Putrajaya to speed up the industry’s policy framework so states can earn new revenue.

The calls come as the four Perikatan Nasional-led states in the SG4 economic grouping again push for greater control over their natural resources.

SG4 States Renew Push for Greater Control Over Natural Resources

Kedah Menteri Besar Muhammad Sanusi Md Nor said investors have finished exploration and are ready to mine, but delays in approvals are holding back state revenue.

He also wants downstream REE processing in Malaysia, not just raw exports, and said he had heard, unconfirmed, that a federal government-linked company might take over the industry.

Kelantan Deputy Menteri Besar Mohamed Fadzli Hassan said the two firms will mine with Perbadanan Menteri Besar Kelantan and are in the final stage of getting environmental impact assessment approval. He did not name the companies or locations.

Economy Minister Akmal Nasrullah Mohd Nasir rejected claims that Putrajaya sidelines SG4 states. He said federal development spending in the four states is 6.8 times their combined state spending.

At an SG4 forum on 26 October, leaders also targeted a combined GDP of RM723 billion by 2050.