ALOR STAR: Perikatan Nasional Kedah government has expressed appreciation to the federal government for selecting Kedah as the second state for the non-radioactive rare earth elements (REE) mineral exploration after Perak.
Menteri Besar Datuk Seri Muhammad Sanusi Md Nor said following the approval, the state government is expected to earn 15 per cent royalty from the REE minerals exploration.
"The REE are a gift or a new income revenue awarded by Allah for the people in Kedah.. To ensure that the new revenue fully benefits the people, for 2024 the Kedah land administration has identified this revenue collection as the most competitive revenue stream in the future.
"The approval for the rare earth elements exploration is by the federal government. Thank you to the federal government for choosing Kedah as the second exploration pilot project after Perak," he said while tabling the state Budget 2024 in the state assembly today.
Sanusi said the approval has placed Kedah as the potential state to carry out 250,000 tonnes of REE minerals mining as estimated by the Department of Minerals and Geoscience as compared to the total estimated reserves of 1,196 tonnes.
"This figure is based on the revenue from REE extraction exploration for the next 10 years. We hope that the new potential revenue which will bring a huge impact to Kedah economy will be managed efficiently, honestly and fairly to all, particularly the people.
"The determination and the willingness of the Kedah government to manage mineral mining industry especially REE is being translated as a state policy and amendment to the mineral provision by including 15 per cent royalty for REE carbonate as the new rate for collection should REE becomes the main revenue for Kedah mining sector.
"By 2024, this sector will begin to generate revenue from the approval for extraction that has been approved since August 2022," he said.