States will pressure Putrajaya if REE plants not set up in 3 years, warns Rafizi

States will pressure Putrajaya if REE plants not set up in 3 years, warns Rafizi

The economy minister says the states want to resume exporting rare earth elements to collect royalties.

Rafizi Ramli
Economy minister Rafizi Ramli said while the states have mineral exploration and extraction rights, the federal government has custodianship of exports.
KUALA LUMPUR:
State governments will apply pressure on Putrajaya to allow them to resume exporting rare earth elements (REE) and collect royalties if it fails to set up processing plants within the next three years as planned, says economy minister Rafizi Ramli.

He said although the states have mineral exploration and extraction rights, the federal government has custodianship of exports.

“The federal government’s concern is that if we allow (states to resume) exports, it won’t be long before we exhaust all our raw materials,” he told reporters at a function here today.

The federal government has imposed a moratorium on non-radioactive REE exports, which has been in effect since Jan 1 this year, as it is focusing on building the downstream industry.

In March, natural resources and environmental sustainability minister Nik Nazmi Nik Ahmad said a letter had been issued to all state governments reminding them to comply with the moratorium.

Rafizi was previously reported as saying Prime Minister Anwar Ibrahim is in talks with Chinese premier Li Qiang on using China’s REE processing technology.

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