KUALA TERENGGANU (April 24): The Terengganu state government needs to formulate a medium and long-term plan to optimise its non-radioactive rare earth elements (NR-REE) resources to obtain high returns. 

Zaharuddin Zahid (PAS-Bukit Tunggal) stated that Malaysia possesses substantial reserves of three NR-REE elements, estimated at 15.2 million metric tonnes with a commercial value of RM1 trillion.

"According to Associate Prof Mohd Yusri Mohd Yunus from Universiti Malaysia Pahang, NR-REE is expected to reach prices of up to RM2 million per metric tonne, with a total market value of RM809.6 billion.

"The three NR-REE elements found abundantly in Terengganu, Kelantan, Perak, Pahang, and Kedah are praseodymium, valued at RM577,212 per metric tonne; neodymium at RM593,336 per metric tonne, and dysprosium at RM1.96 million per metric tonne," he said.

Zaharuddin was speaking during the motion of thanks on the royal address by the Sultan of Terengganu Sultan Mizan Zainal Abidi, at the Terengganu State Legislative Assembly at Wisma Darul Iman on Wednesday.

The assemblyman highlighted that these three elements are crucial components in the production of high-powered magnets used in electric motors for hybrid and electric vehicles, which are currently in high demand.

"The upstream industry such as mining, and the mid-stream industry involving extraction, are only small parts of the overall value chain. However, they are vital to support the highly valuable downstream industry.

"Bukit Tunggal is confident that the state government will give this new source of revenue serious attention," he said.

During the assembly's opening, Sultan Mizan remarked that NR-REE is a new industrial sector, following the Department of Minerals and Geosciences’ discovery that Malaysia has approximately 15.2 million metric tonnes of NR-REE, with Terengganu holding the largest deposit of around 7.2 million metric tonnes.

Sultan Mizan emphasised that the state government should determine the best methods for NR-REE mining, to ensure the creation of a value chain, including mid-stream and downstream industries, which would establish the state as the country’s leading producer and processor of NR-REE.

https://www.theedgemarkets.com/node/709216