Kedah's Rare Earth Exploration Efforts 'Hindered' Over National Security Concerns

Kedah's ambition to independently explore and develop rare earth elements (REE) has reportedly been blocked by the federal government, which has cited national security as the reason for its refusal. The state's Menteri Besar, Datuk Seri Muhammad Sanusi Md. Nor, asserted that Kedah is fully prepared to adhere to all stipulated requirements and standard operating procedures for a pioneering project in Kenering, Perak.

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The federal government promised to give it to us. We can do what China can do, we can separate 17 elements and if you appoint China here, you give it to us (US) too, we are ready to build a factory next to China's factory.

Muhammad Sanusi revealed that foreign representatives from countries including the United States, France, and Australia have shown keen interest in partnering with Kedah to develop its REE industry. He recounted a recent meeting with the U.S. ambassador, who reportedly mentioned a federal promise to grant Kedah access, suggesting Kedah could replicate China's capabilities in separating the 17 REE elements. Representatives from Australia's Lynas company have also visited, indicating significant international interest in Kedah's potential REE resources.

This situation arises despite Sultan Sallehuddin Sultan Badlishah of Kedah recently decreeing that the state's rights and authority over managing and exploring strategic mineral resources like REE should be respected and facilitated. The Sultan urged the federal government to provide full cooperation, ensuring no administrative obstacles impede the state's development efforts. Muhammad Sanusi emphasized that Kedah possesses some of the highest quality REE sources in the country, making it a point of contention among global powers like the U.S. and China.

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Federal goes everywhere, tells all states, and finally when asked in a meeting, they say 'national security', that's the end of us.

He reiterated his stance that REE is the state's right and that Kedah would award operations to the highest bidder, encouraging the establishment of processing and separation plants within the state. "I told them that REE is the right of the state, I will give it to whoever offers the highest price, come operate here, do the separation of these 17 elements here and build a factory here. We want the best price for our state," Muhammad Sanusi stated.

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REE is the right of the state, I will give it to whoever offers the highest price, come operate here, do the separation of these 17 elements here and build a factory here. We want the best price for our state.