Two Kelantan companies expected to start rare earth mining next year

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Kelantan rare earth mining 2025

Highlights

Two local companies are expected to start mining rare earth elements in Kelantan in 2025 after completing the environmental impact assessment approval process with PMBK.
A total of 62 bulldozers valued at an estimated RM15.8 million were seized for their involvement in illegal mining across Kelantan.
Strict penalties, including maximum fines and asset forfeiture, will be imposed on repeat offenders to combat illegal mining.

This article was translated from the original. Read the original version by our correspondent here.

Final approval and production plans

As reported by The Edge Malaysia, two local companies licensed to extract rare earth elements in Kelantan are expected to start mining next year in collaboration with the Kelantan Menteri Besar Incorporated, PMBK.

Deputy Menteri Besar Datuk Dr Mohamed Fadzli Hassan said both companies were in the final stages of obtaining environmental impact assessment approval from the Department of Environment. He also said the state government planned to market the output itself.

Mohamed Fadzli made the remarks to reporters after a sitting of the State Legislative Assembly at the Kota Darulnaim Complex in Kota Bharu on Thursday.

Enforcement action against illegal mining

In a separate development, he said 62 bulldozers believed to have been involved in illegal mining across the state had been seized, with their value estimated at RM15.8 million.

According to him, repeat offenders could face strict penalties, including maximum fines and asset forfeiture, to curb the theft of the state's mineral resources. Raids were carried out based on information from relevant agencies and local residents, as well as the detection of several companies that had been granted exploration permits but were instead conducting illegal mining.

He said exploration licenses only allow specific activities to assess an area's suitability for mining, including estimating its mineral yield, but some parties had proceeded with mining. On another matter, he said a betel leaf farm spanning more than two hectares, believed to have been cultivated by ethnic Rohingya in Kampung Padang Guchil, Tanah Merah, would be referred to the enforcement authorities for action under the law.

In our earlier coverage of U.S. companies' interest in Malaysia's rare earth sector we reported that more than a dozen firms were assessing opportunities to partner on mining projects and invest in processing facilities. We also highlighted that this interest was driven by efforts to diversify critical mineral supplies and build alternative supply chains outside China, including in the wake of the critical minerals agreement between the two countries.

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