KUALA LUMPUR: Some 16,000 tonnes of rare earth oxide were mined illegally and exported to China, says Nik Nazmi Nik Ahmad.
The Natural Resources and Environmental Sustainability Minister said the rare earth ore was said to have come from unauthorised activity in five states.
"We are aware of the report from China as what was mentioned by YB where some 7,000 tonnes of rare earth carbonate to produce 3,000 tonnes of rare earth oxide had come from the pilot project in Kenering," he said in the Dewan Rakyat on Tuesday (March 12) in reply to a supplementary question by Lee Chuan How (PH-Ipoh Timur).
"We estimate that 16,000 tonnes of rare earth oxide were from illegal mining operations."
Nik Nazmi said the operations were located in forest reserves in Sik in Kedah, Lipis in Pahang and Pengkalan Hulu and Kuala Kangsar in Perak.
He added that two other mines were located on private land in the Meranti and Jelebu districts of Negri Sembilan.
Lee wanted to know if the government would develop a comprehensive plan to attract investors and develop the rare earth industry in the country.
He cited a report in China which claimed that 19,081 tonnes of rare earth oxide from Malaysia were imported by China at a cost of RM975mil.
He added that 7,000 tonnes of carbonate from the Kenering pilot project was used to produce 3,000 tonnes of rare earth oxide.
"This means that the remaining 16,000 tonnes of rare earth oxide from Malaysia were mined illegally," the backbencher said.
Nik Nazmi acknowledged the need for a comprehensive plan and policy to develop the NR-REE industry here.
He said that there is currently a strategic competition to develop the non-radioactive rare earth element (NR-REE) industry in Malaysia, with China seemingly in the lead.
However, he said the United States, Europe, Japan, South Korea and Australia have also expressed their interest.
"Our stand is that we are open to it," he said, adding that Vietnam and Myanmar have already begun developing their own NR-REE industries.
He noted that it was crucial for the nation to develop the industry to complement the renewable energy and electric vehicle sectors here.
Although 10 states in the country possess rare earth ore deposits, he said only a few have the capacity to attract industry players and develop the sector.
Earlier, Nik Nazmi informed the House that a moratorium on the export of NR-REE came into effect on Jan 1 and is subject to review every six months.
He said certain state governments had urged Putrajaya to reconsider the moratorium.
However, he said reminder letters were issued on March 6 to remind the states that the policy remained in force.
