BANGI: Perikatan Nasional is exploring the downstream processing of rare earth elements (REE) as a potential revenue source under its State Government 4 (SG4) economic plan, Datuk Seri Dr Ahmad Samsuri Mokhtar said.
The Terengganu Menteri Besar highlighted the significant revenue potential from refining raw REE into their pure forms, such as cadmium.
"REE in their unprocessed state has minimal value. However, when processed into advanced, pure forms like cadmium, their value increases exponentially, sometimes by hundreds or even a thousand times.
“Thus, prioritising the processing of these elements is a logical step for us," he said during a press conference at the SG4 Summit here on Monday (Sept 2).
Also present at the event were Kedah MB Datuk Seri Muhammad Sanusi Md Nor, Kelantan MB Datuk Nassuruddin Daud, and Perlis MB Mohd Shukri Ramli.
Samsuri further explained that the plan could greatly benefit industries utilising these processed materials, such as those producing super magnets and electric vehicles (EVs).
He emphasised the advantage of downstream companies setting up factories in areas where these raw materials are sourced.
"This would enhance the overall value chain," Samsuri added.
Samsuri also revealed that both government-linked companies (GLCs) and foreign investors have expressed interest in REE-related investments, though these discussions remain at an early stage, involving exploration licenses and resource verification.
"The data provided by the Minerals and Geoscience Department is broad. As we explore specific areas, say, the first 10 hectares, we must first confirm whether those areas contain the necessary resources.
“This is where we currently stand, with multiple companies, including GLCs, showing investment interest."
According to Samsuri, several countries, including South Korea, Japan, and China, have shown interest in investing across various sectors such as heavy industries, agriculture, and agro-industry, but stopped short of disclosing specific investment figures.
"The potential for the SG4 states is vast, encompassing new areas of growth such as natural resources and critical minerals, agriculture and food security, green technology and carbon credits, trade and eco-tourism, the halal industry, Shariah-compliant fintech, and education.
“As development on the West Coast reaches its limits, facing resource constraints and nearing saturation, opportunities in the SG4 states, which offer larger industrial zones and more cost-effective options, are becoming more attractive for high-potential investments," Samsuri added.
He also noted that a workshop would be held later to outline the SG4 states' development targets for the coming years.
