The delay in rare earth element (REE) mining in Kelantan is largely attributed to the distribution of these minerals, which are primarily located in permanent forest reserves (PFR), according to Deputy Menteri Besar Datuk Dr. Mohamed Fadzli Hassan.
Under the National Forestry Act 1984, mining operations cannot be conducted in forest reserves unless the land is first de-gazetted. This regulatory requirement, combined with the need to comply with the federal moratorium on the export of REEs and non-radioactive REEs (NR-REEs), has added further complexity to the process.
Additionally, mining projects must undergo an Environmental Impact Assessment (EIA) to ensure that extraction activities do not harm the local ecosystem. The EIA process is a lengthy and necessary step for the responsible development of midstream and upstream REE industries, but it has contributed to delays in obtaining project approvals.
Mohamed Fadzli emphasized that while these regulatory measures may cause delays, they are essential to protect the environment and ensure that mining activities benefit both the local community and the state. He pointed out that the state government is actively working to streamline the process by establishing standard operating procedures, in collaboration with the Department of Minerals and Geosciences, to ensure compliance with regulations.
In response to additional questions regarding the status of the geochemical laboratory in Kelantan, Mohamed Fadzli noted that the facility, located in the Pengkalan Chepa industrial area, is nearing completion. It is expected to be fully operational in a few months, further supporting the state’s mining and geoscience efforts.
