ALOR STAR – The Kedah government has recouped losses caused by the illegal mining of rare earth elements (REE) in Sik by issuing compounds to a Chinese national found responsible for the activity.
Menteri Besar Datuk Seri Muhammad Sanusi Md Nor said the man had on October 11 paid a RM500,000 compound for illegal REE mining and another RM130,000 for trespassing the Bukit Enggang Forest Reserve in Sik.
“This followed recommendations to the deputy public prosecutor by the Kedah Forestry Department for action to be taken,” he said during the question-and-answer session at the state assembly sitting here today.
Sanusi was replying to Johari Abdul (Gurun-PKR) who asked for developments on the illegal REE mining issue in Bukit Enggang.
The menteri besar said the state government was advised that the case should be compounded rather than taken to court as the money would go into the state government coffers.
“Otherwise, if it was taken to court, then the fine would go to the federal government,” he said.
He said the seized REE were estimated to be worth RM391,360.91, according to its market value on September 30, with a price of RM35,257.74/tonne.
The material had been seized and would be disposed of after obtaining the approval of the state authorities, he added.
Sanusi said the Chinese national and a lorry driver transporting the REE were arrested and remanded on September 26.
He said a mass spectrometry laboratory test conducted by the Kedah Minerals and Geoscience Department found that the seized sludge cake (REE carbonate) contained rare earth elements.
“The Forestry Department has taken action by stopping illegal REE mining activities in Compartment 12 of the Bukit Enggang Forest Reserve and by destroying the equipment used for REE mining,” he said.
Meanwhile, he also denied any involvement by Menteri Besar Kedah Inc (MBI) in any REE exploration and mining activities in the Bukit Enggang Forest Reserve.
Sanusi said this was because exploration and mining in the area have not yet started as the Energy and Natural Resources Ministry has yet to issue a complete set of standard operating procedures (SOPs) related to the activity.
“MBI and Prospek Suria (company) are in a 15:85 joint venture with the company given one (mining) lot. Yes, there is permission to explore but the joint venture has yet to take effect and there is no (mining) activity as we are still waiting for the SOPs.
“The one who stole (REE) is a Chinese national and the one who paid the compound is not (Muhamad) Sobri Osman, who heads MBI,” he said when replying to a supplementary question by Datuk Ismail Salleh (Pengkalan Kundor-Amanah). – Bernama, October 31, 2022
