KUALA LUMPUR (July 7): Niche Capital Emas Holdings Bhd (KL:NICE) said its joint development partner, Greensnow Consolidated Bhd, has secured an interim manufacturing licence from the Ministry of Investment, Trade and Industry (Miti) to process rare earth carbonate into rare earth oxide — the specialised chemical powders used in modern high-tech and green technologies — at its plant in Gebeng, Kuantan.

The approval comes as the two companies advance their rare earth collaboration, following a memorandum of understanding signed in May, a joint development agreement in June to develop an ion-adsorption clay rare earth project spanning about 2,000 acres in Sungai Jeli, Kelantan, and a subsequent memorandum with StrategicREM LLC to negotiate an offtake agreement for minerals produced from the project.

According to Niche Capital's bourse filing, the interim licence was granted to Greensnow Consolidated's wholly owned subsidiary, Greensnow Precision Sdn Bhd (GPSB), on June 26.

The licence is subject to several conditions, including maintaining a minimum capital investment per employee of RM140,000, ensuring at least 80% of GPSB's workforce comprises Malaysians and providing technology transfer training to local employees.

GPSB must also notify Miti and the Malaysian Investment Development Authority (Mida) of any changes in its shareholding, furnish project updates upon request and submit the required documents within six months to obtain a full manufacturing licence.

Niche Capital said the approval supports Malaysia's push to develop an integrated end-to-end rare earth value chain by promoting higher value-added processing and strengthening the country's midstream and downstream rare earth industries.

The companies had earlier unveiled plans to explore about 412,000 acres of rare earth-rich land across Kedah, Pahang, Terengganu and Kelantan to build an integrated supply chain covering exploration, extraction, processing and infrastructure development.

Greensnow Consolidated is 70%-owned by Threadstone Capital Sdn Bhd. ESG Global Ventures Sdn Bhd holds 15% in the company, while Mohamad Redzuan Mustaffa, Syahrir Ridha and Rahman Yaccup own the remaining 15%.

Shares of Niche Capital ended five sen or 5.26% lower at nine sen, giving it a market capitalisation of RM146.38 million.