The Kedah state government is expected to receive royalties from rare earth element (REE) mineral mining in Sik amounting to 15 percent, starting next year.
Menteri Besar, Datuk Seri Muhammad Sanusi Md Nor said the payment was the result of the Federal Government’s decision to make Kedah the second state to implement a pilot REE mining project after Perak.
“The REE element is a sustenance or a new economic resource bestowed by God for the people of Kedah. To ensure that this new revenue is fully beneficial, the Kedah land administration plans to collect revenue from this most viable source in the future.
“Thank you to the Federal Government for choosing Kedah as the second REE exploration pilot project after Perak,” he said when presenting the Kedah Budget 2024 at the State Legislative Assembly (DUN) Session.
Muhammad Sanusi said, this pilot project will position Kedah as a state with the potential to implement REE mining with an estimate of the Department of Minerals and Geosciences of 250,000 tons compared to Kedah’s total REE reserves of 1,196 million tons.
“This figure is the result of the new exploration of REE extraction in the next 10 years. The potential of this result which has a big impact on the economy of Kedah is expected to be managed efficiently, the trust is fair for all, especially the people.”
