Malaysia Eyes Sustainability In Rare Earth Industry With Potential Legislative Revisions

By Nur Ashikin Abdul Aziz

SINGAPORE, Sept 17 (Bernama) -- Malaysia is moving forward to enhance the sustainability of its rare earth industry by examining the Mineral Development Act through the Natural Resources and Environmental Sustainability Ministry (NRES) to assess the necessity of adjustments for the efficient oversight of the non-radioactive rare earth element (NR-REE) sector.

Its minister, Nik Nazmi Nik Ahmad, said it is important that the environmental, social, and governance (ESG) aspects become a top priority from the outset, as the government works on developing the NR-REE industry in the country.

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“Currently, the law that is guiding us at the federal level is still the Mineral Development Act 1994. So, we will look at whether it's sufficient or not. That is something that we will explore,” he told Bernama on the sidelines of the Future of Mining Asia conference, here, Tuesday.

Nik Nazmi said that while mining exploration activity falls under state purview, the exportation of mining products falls under federal jurisdiction – hence it is important that both sides work together for a win-win partnership.

He said that as REE is being used for products geared towards energy transition, such as electric vehicles, the industries and consumers are more ESG-conscious than ever.

“People want to get real green products. They don't want to buy an EV where the materials are not being sourced properly. I think that is why it is very crucial that we start this industry on the right footing,” he said.

He noted that Malaysia aims to grow the industry by leveraging investments and technologies from various countries.

Prime Minister Datuk Seri Anwar Ibrahim had previously said that Malaysia should fully leverage the vast potential of the local NR-REE industry, emphasising that collaborations with international experts should aim to develop the entire industry chain within the country.

On the climate change bill, Nik Nazmi said the ministry is currently working hard to ensure that the draft can be shared with the public by this year as part of their consultation process before being tabled to Parliament.

“There has been a series of consultations with state governments. The first draft is now being finalised, and we will have additional rounds to continue improving it before we share the bill publicly to obtain input from the public on this matter,” he said.

Meanwhile, Nik Nazmi said NRES is currently working on a carbon credits MoU with Singapore, hopefully to be signed at the Malaysia-Singapore Leaders' Retreat later this year.

“Discussions have been positive. There are just some minor details that are still being worked out,” he said.

-- BERNAMA