KOTA BHARU (Oct 29): Two local companies licensed to extract rare earth elements (REE) in Kelantan are expected to begin mining next year.

Deputy Menteri Besar Datuk Dr Mohamed Fadzli Hassan said both companies will execute the activities in collaboration with Perbadanan Menteri Besar Kelantan (PMBK).

He said both companies are in the final stages of obtaining environmental impact assessment approval from the Department of Environment.

“We already have two local companies licensed to carry out REE production. We will also have our own methods to market the output later,” he told reporters after the State Legislative Assembly sitting at the Kota Darulnaim Complex here on Thursday.

In a separate matter, Mohamed Fadzli said 62 excavators believed involved in illegal mining across the state have been seized, valued at RM15.8 million.

He said stern action, including maximum fines and asset forfeiture, could be taken against repeat offenders to curb theft of the state's mineral resources.

“The raids were conducted based on information from relevant agencies and local residents. We also detected several companies that were granted exploration permits but instead conducted illegal mining.

“While an exploration licence permits specific activities to assess an area's suitability for mining, including estimating mineral yields, some parties proceeded straight to mining,” he said.

Commenting on a betel leaf farm spanning over two hectares believed to be cultivated by ethnic Rohingya in Kampung Padang Guchil, Tanah Merah, he said the matter would be referred to enforcement authorities for action in accordance with the law.

Media previously reported that the betel leaf farm, believed to have been cultivated for several years, had caused concern among local residents.

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