GEORGE TOWN, Nov 20 — Penang has identified potential non-radioactive rare earth element (NR-REE) deposits worth an estimated US$21 billion (RM87 billion) and which could be a major new economic driver for the state, the Malay Mail reported.
Speaking at the state legislative assembly, Chief Minister Chow Kon Yeow said preliminary studies by the Minerals and Geoscience Department have found NR-REE resources in several hilly areas, including Teluk Bahang, Balik Pulau, Bukit Mertajam, and Bukit Panchor.
“The estimated NR-REE resources in the state are around 1.7 million metric tonnes, with an estimated value of US$21 billion, subject to confirmation through detailed studies,” he said.
However, Chow stressed that a robust state mineral regulatory framework must be put in place before any exploration or resource development activities can begin.
“The state government is open to proposals from any party, local or international, interested in exploring NR-REE potential in Penang,” he said, confirming that each proposal will be professionally evaluated.
The push for new revenue sources comes as the state works to rebuild its consolidated account balance, which currently stands at RM235.55 million.
Chow explained that the state had to draw from its reserves between 2020 and 2024 to fund increased welfare spending during the Covid-19 pandemic.
He reiterated his pledge to rebuild the state’s reserves to RM1 billion through enhanced revenue collection strategies, including a multi-year plan to more than double the annual quit rent collection to RM300-350 million.
