IPOH: The state government has received RM1.66 million in royalty payment from the lanthanide rare earth mining project in the Kenering sub-district, Gerik.
Perak Menteri Besar Datuk Seri Saarani Mohamad said it was derived from the inaugural export of the mine's end-product, rare earth carbonate (REC), amounting to 296.1945 metric tonnes in February.
The Kota Tampan assemblyman said the project started in October last year after the operator obtained relevant legal approvals from technical agencies and permission to operate from the authorities on Sept 21, last year.
"The operation of this pilot project is being carried out on a pilot area of 87.4ha and involves the extraction of NR-REE minerals using the in-situ leaching method and processing to produce the end product of the mine, which is REC.
"To date, a total of 4,477 metric tons of RCE from lanthanide rare-earth mining project has been exported to China via four shipments in February, March and April this year. The remaining REC on site is about 1,000 metric tons.
"The project proponent has also cleared a royalty payment of RM1,658,425.51 for the first export of REC of 296.1945 metric tons in February 2023," he said in reply to a question from Goh See Hua (DAP-Pasir Pinji) at the state legislative assembly sitting today.
He said the state government is also committed to establishing an NR-REE processing centre in Perak as a downstream industry activity to produce semi-products and final products that are more valuable compared to raw NR-REE products.
"The development of an NR-REE processing centre should be carried out in this state first, considering that Perak is the main driver of the identification of this mineral resource and is also the first state to carry out a pilot project of its kind," he added.
Meanwhile, Saarani also reiterated that the mining works carried out would not affect the environment and harm the people as the project proponent had complied with all the standard operating procedures (SOP).
"When we did the pilot project at the site, we followed the SOP set by the ministry. During the time we produced the extraction, there was an audit that came (monitored) whether the activities at the site complied with (SOP) or not. The audit has confirmed that all of that has been complied with.
"If the process of extracting NR-REE or the process of producing new materials from the extraction brings harm to the production of radioactivity, the state government will not hesitate to stop the project because we prioritise the health and lives of the people of Perak over the results," he said.