Perak eyes new revenue from rare earths, calls for more federal funding

Screenshot 2025 04 17 160242

IPOH, April 17 — The Perak government requested its federal counterpart reconsider an allocation of RM20 million to study mineral resource deposits in the state, the state legislative assembly was told today.

Perak Menteri Besar Datuk Seri Saarani Mohamad said this initiative would help the state government streamline and reassess all applications for mineral tenements, especially those involving the extraction of non-radioactive rare earth elements (NR-REE), as minerals emerge as a promising new source of revenue for the state.

He said the allocation would enable the Minerals and Geoscience Department (JMG) to conduct studies, exploration, or surveys.

“We have been informed that there are many other potential new minerals in the state and potential for extraction if the locations are identified.

“We will be able to develop not just NR-REE but also these new sources as new revenue streams for the government,” he said.

Saarani was replying to oral questions asked by Tronoh assemblyman Tiw Tee Siang during the state assembly sitting at the Perak Darul Ridzuan Building here.

Saarani also said that six privately-owned land plots in Kenering, located within the Hulu Perak District, have received approval for NR-REE mining after their Environmental Impact Assessment (EIA) reports were approved.

However, he said only one of these plots is currently active, operating as a pilot project for NR-REE mining.

“The remaining five land plots will be developed in phases to ensure environmental sustainability, in line with the Responsible Mining agenda outlined in the Perak Sejahtera 2030 Plan, and will only be activated once operations at the current NR-REE mining site conclude,” he stated.

“Preliminary studies conducted by JMG Malaysia Perak have identified four districts with potential NR-REE mineral resources, namely Hulu Perak, Kuala Kangsar, Larut Matang, and Kinta, with an estimated reserve of approximately 1.7 million metric tonnes.

“However, it is worth noting that between 70 per cent and 80 per cent of these potential reserves are located within forest reserve areas,” he said.

He added that the state government has earned the trust of the Ministry of Natural Resources and Environmental Sustainability after the pilot project, which was approved by the federal government within the forest reserve, was executed systematically while preserving environmental sustainability.

From 2019 to 2023, Saarani said a total of three illegal NR-REE mining cases were successfully uncovered through the collaborative efforts of the Perak State Forestry Department, the Perak Land and Mines Office, and the police.

“These illegal mining activities took place within the Bintang Hijau Forest Reserve, Kenderong Forest Reserve, and Ulu Piah Forest Reserve — all located in the Hulu Perak district.

“A total of 31 individuals were arrested, comprising 10 local citizens and 21 foreign nationals. They have been charged under the Forestry and Immigration Acts,” he said.

Did this page help you?

Invalid Input
Invalid Input
Invalid Input