KUALA LUMPUR: Melaka is drafting a standard operating procedure (SOP) to regulate its rare earth element (REE) mining sector, which holds deposits valued at over RM8 billion.

The SOP, expected to be finalised by the end of 2025, is part of a high-impact initiative under the national bureaucratic reform agenda.

It is being developed through a collaboration between the Malaysia Productivity Corporation (MPC) Southern Region and the Melaka Land and Mines Office.

Melaka Land and Mines Office Deputy Director Datuk Anis Ali Hasan said success in the sector hinges not only on resource availability but also on disciplined and responsible governance.

"Melaka's success in the mining sector does not rely solely on resources, but on our ability to manage them in an orderly and accountable manner," he said in a statement.

He added integrity in administration and compliance with technical guidelines are essential to ensure sustainability and investor confidence.

MPC Southern Region Director Mohd Azwan Mohd Salleh said the SOP is designed to streamline approval processes while enhancing governance.

"This SOP is a step forward in reducing bureaucratic hurdles, while paving the way for more impactful and efficient governance," he said.

Authorities plan to conduct a benchmarking visit to Perak and field simulations to assess the SOP's effectiveness and operational readiness before implementation.

Melaka's REE reserves are estimated at 125,000 tonnes with a market value exceeding RM8 billion.

The state aims to position itself as a credible, well-regulated destination for mineral-sector investments.