KUALA LUMPUR: There is a need to have federal regulations and an agency to manage the rare earth element (REE) development value chain, says a government backbencher.
Howard Lee (PH-Ipoh Timur) said that there is a need for such regulations to avoid any form of exploitation by irresponsible parties.
"I urged the government to come up with a Bill or establish a federal agency to regulate, manage and develop the entire REE value chain.
"It will be hard for state governments to do it alone," he said when debating the Supply Bill 2024 in the Dewan Rakyat on Monday (Oct 23).
On Sept 26, the Natural Resources, Environment and Climate Change Ministry said it would hold discussions with state governments regarding the establishment of a framework for REE extraction.
The discussions with the state governments would revolve around REE processing as well as potential areas for exploration without disrupting the permanent forest reserve ecosystem, added Nik Nazmi.
Lee pointed out that REE was a commodity that has high value and it was important for the government to have a proper framework on the development of the sector.
"For example, Petronas is equipped with a lot of lawyers, financial and commodity analysts, and economists with special legal expertise in the field of oil and gas, as well as consulting, and trading models.
"Which state government can afford to pay the experts?" Lee asked.
The government had previously said that REEs were commonly used in the production of various products and technologies, including electric vehicles, turbines and windmills for renewable energy production, and telephones.
