Malaysia Rules Out Single Entity To Regulate Rare Earth Industry — Johari

KUALA LUMPUR, Aug 19 (Bernama) -- The Ministry of Natural Resources and Environmental Sustainability (NRES) has no plans to establish a centralised body to regulate Malaysia’s rare earth elements (REE) industry, citing constitutional provisions and objections from state governments.

Acting Minister Datuk Seri Johari Abdul Ghani said several states had raised concerns during engagement sessions, viewing the proposal as an attempt to nationalise state-owned mineral resources.

“Petroleum resources outside state waters are managed differently from land matters, which fall under state jurisdiction,” he told the Dewan Rakyat when winding up the 13th Malaysia Plan (13MP) debate for his ministry today.

He cited the Federal Constitution’s Ninth Schedule (State List), which gives states authority over mining permits, leases and licences. As such, any move to centralise REE regulation would require in-depth study and close consultation with all state governments to safeguard their rights.

Johari also dismissed claims that Malaysia had offered to supply REE, raw or otherwise, exclusively to the United States as leverage in trade tariff talks.

“This was already clarified by the Investment, Trade and Industry Minister (Tengku Datuk Seri Zafrul Abdul Aziz) on Aug 7. The tariff discussions did not involve any commitment to supply REE,” he said.

On negotiations with China, Johari said discussions are currently focused on strengthening bilateral cooperation to develop Malaysia’s REE industry across the full value chain, including the setting up of processing plants.

“It’s still early and China wants to see if our REE can be converted into the downstream products they need. No formal talks are underway regarding any buyback of processed REE,” he said.

-- BERNAMA