KUALA LUMPUR: Natural Resources and Environment Sustainability Minister, Nik Nazmi Nik Ahmad, assured that there would be no interference at the federal level regarding rare earth element (REE) mining.
Speaking during the Budget 2025 winding-up session, he said the Federal Constitution is very clear on this matter, specifying that minerals fall under state jurisdiction.
He noted that the standard operating procedures (SOPs) have already been shared with state governments.
"The Menteri Besar (MB) has attended meetings where we shared the SOPs. However, as we also know, when it comes to exports and similar matters, these fall under the purview of the Federal Government.
"Similarly, from a procedural standpoint, we have the Mineral Development Act, which is used to regulate and ensure that the process is done sustainably and in an orderly manner. So, there are no issues now," he said.
He was responding to Datuk Seri Takiyuddin Hassan (PN-Kota Baru) who asked the federal government on their stance with regard to REE in states.
Nik Nazmi said the reason for imposing a moratorium on REE exports is to capture more value within the country.
"We don't want to repeat the early mistakes we made with tin mining, where we mined and exported raw materials without domestic processing. By contrast, if we look at the oil and gas industry, we have successfully developed it into a leading sector.
"This has become a strength for our country," he said.
Nik Nazmi also assured that there would be no monopoly in the REE industry, as with Petronas in the oil and gas sector.
"We aim to use the existing Mineral Development Act and the Federal Constitution. We will review the Mineral Development Act 1994 with necessary amendments, but we do not intend to create a monopoly for companies. This is our current goal," he said.