Speaking at the Dewan Rakyat today, Prime Minister Anwar Ibrahim said this will also maximise returns for Malaysia by developing the rare earth value chain within the country.
He said a detailed and comprehensive business model which integrates upstream, midstream and downstream sectors will be developed for this purpose.
“The rare earth industry will emerge as a new sustainable source of growth based on sustainable and environmentally-friendly non-radioactive rare earth elements,” he said when tabling the 12th Malaysia Plan mid-term review today.
“These elements are crucial in manufacturing batteries, super magnets and electronic devices.”
Anwar said the industry is expected to contribute up to RM9.5 billion to the country’s gross domestic product (GDP) by 2025 and generate close to 7,000 job opportunities.
To achieve this goal, he said a new national mineral policy will be formulated to drive comprehensive development of the mineral industry, guided by the principles of sustainability and responsibility.
“This policy will serve as a guideline for conducting mining activities in permanent forest reserves, environmentally-sensitive areas, and protected regions,” he said.
In May, deputy prime minister Fadillah Yusof said the government was looking to establish a national mineral policy within three months, adhering to the prevailing SOPs for rare earth element (REE) mining.
Fadillah said the policy seeks to responsibly manage the nation’s mineral resources, balancing economic needs and national revenue while safeguarding environmental sustainability.
In July, it was reported that the Cabinet had approved SOPs for non-radioactive REE (NR-REE) mining.
This comes after natural resources, environment and climate change minister Nik Nazmi Nik Ahmad revealed in June that Malaysia possessed 16.1 million tonnes of NR-REE, with an estimated market value of RM809.6 billion.
The minerals and geoscience department identified 29 areas with potential for NR-REE in Johor, Kedah, Kelantan, Melaka, Negeri Sembilan, Pahang, Perak, Sarawak, Selangor and Terengganu.