Malaysia is taking significant steps to enhance the sustainability of its rare earth industry by reviewing the Mineral Development Act through the Natural Resources and Environmental Sustainability Ministry (NRES). The aim is to evaluate potential adjustments for effective oversight of the non-radioactive rare earth element (NR-REE) sector.
Minister Nik Nazmi Nik Ahmad emphasized the importance of prioritizing environmental, social and governance (ESG) aspects as the government works to develop the NR-REE industry. “Currently, the law guiding us at the federal level is still the Mineral Development Act 1994, so we will explore whether it’s sufficient,” he stated at the Future of Mining Asia conference.
While mining exploration is regulated at the state level, the exportation of mining products falls under federal jurisdiction, making collaboration essential for mutual benefit. As NR-REEs are increasingly used in products supporting energy transition, such as electric vehicles, there is a growing demand for responsibly sourced materials.
Nik Nazmi noted that Malaysia aims to attract investments and technologies from various countries to grow the industry. Prime Minister Datuk Seri Anwar Ibrahim has highlighted the need to leverage the potential of the local NR-REE sector and collaborate with international experts to develop the industry chain within the country.
Regarding the climate change bill, Nik Nazmi shared that the ministry is finalizing a draft that will be publicly shared this year for feedback before being presented to Parliament. “We have conducted consultations with state governments, and the first draft is now being refined,” he added.
Additionally, NRES is working on a memorandum of understanding for carbon credits with Singapore, which is expected to be signed at the Malaysia-Singapore Leaders’ Retreat later this year. “Discussions have been positive, with only minor details left to finalize,” he concluded.