MALAYSIA currently lacks the technology to process rare earth elements (REE), and any plans for large-scale extraction must proceed with caution, the Ministry of Natural Resources and Environmental Sustainability (NRES) has said.
Acting Minister of Natural Resources and Environmental Sustainability, Datuk Seri Johari Abdul Ghani, who also serves as Minister of Plantation and Commodities, told the Dewan Rakyat on Monday that Malaysia’s current efforts in the sector remain at the exploratory stage.
“We are only experimenting with rare earth mining at this point,” Johari said in response to a supplementary question from Kuala Nerus MP Datuk Dr Alias Razak regarding federal-state collaboration to support REE mining as a potential new revenue stream.
He stressed that prior to any full-scale mining, Malaysia must learn from its past experience with copper mining in Ranau, Sabah, which took place between 1975 and 1999.
“We must consider what happened in Ranau. The mining waste, if not controlled, can cause environmental disasters. In fact, we had to shut it down because the water released from the containment area was so toxic that not even fish could survive,” he said.
Johari noted that environmental impact must be the primary consideration in all REE-related activities. He cited a current government pilot project in Kenering, Perak, involving 109.2 hectares of land, where detailed environmental studies are being conducted.
“At the site, we are analysing how residual water from the mining process affects the land. For every one metric tonne of REE mined, five metric tonnes of ammonium sulphate are used in the process,” he said.
“Once extracted, the REE is sent to China for processing because we currently do not have the capability to process it locally. What we need to examine is the impact of the residual water on the land after the REE has been extracted.”
He added that discussions are ongoing with the Perak Chief Minister, Datuk Seri Saarani Mohamad, to allocate 1.2 hectares of land for scientific testing.
“On each acre, we plan to grow oil palm, rubber, and carry out aquaculture. This will help us assess the effects of mining residue on agricultural and aquatic yields,” he said.
Johari reiterated that a comprehensive study must precede any expansion of REE activities in order to avoid repeating the environmental pitfalls of past extractive industries. - August 18, 2025
