KUALA LUMPUR, Aug 3 — Home Minister Datuk Seri Saifuddin Nasution Ismail today challenged Datuk Seri Muhammad Sanusi Md Nor to provide proof of his claim that Prime Minister Datuk Seri Anwar Ibrahim brought an Indonesian tycoon to Kedah for the purpose of applying to mine rare earth elements (REE).

Saifuddin said that the caretaker Kedah menteri besar should produce evidence to back his claims, just as how he revealed letters that purportedly linked Sanusi to suspects in the theft of REE at the Bukit Enggang forest reserve in Sik, Malaysiakini reported.

"He can prove it if he dares — either a photo or an application letter.

"I challenge Sanusi: Just as I have shown that you have written to the home minister (at the time Datuk Seri Hamzah Zainudin); I have the letter. You know (the suspect); I have the photo.

"He must show it: When did (the tycoon) ask for it? When did Anwar bring (the tycoon) to see you? Please do tell,” he was quoted as saying.

On Monday night, Sanusi alleged that Anwar had brought an Indonesian oil tycoon to the state before the Parliament was dissolved last year for the purpose of applying to mine REE.

Saifuddin said that Anwar had dismissed Sanusi’s assertions as nonsense.

He said Anwar and the tycoon had come to Kedah to have an audience with the Kedah Ruler at Istana Anak Bukit.

"They went back after the audience,” he said.

Malaysiakini did not reveal the tycoon's name pending his comment, and the suspects' names pending their comment or formal charges being laid.

Sanusi also had alleged that someone had called him before the state assembly was dissolved saying that the Indonesian tycoon would like to offer him hundreds of sacrificial cows.

He was reported saying that he did not accept it because the state election was around the corner and he was afraid that it will be seen as a form of bribe.

Sanusi also said that he has no issues in allowing any party who wants to apply mine rare earths in the state.

However, he stressed that the applicants should use the right channels to bring returns to the Kedah state government and its people.

Saifuddin was previously reported as saying that he will reveal further revelation on the REE issue despite Sanusi having previously threatened to sue Saifuddin if he continues to link him with the REE theft.

Saifuddin also told the audience that if Pakatan Harapan and Barisan Nasional win the Kedah election, the new state government will work with the federal government’s Natural Resources, Environment and Climate Change Ministry (NRECC) to come up with guidelines to mine REE and mobilise state-owned enterprises to exploit the resource for the benefit of the people.

Efforts to develop Malaysia’s REE resources started at least as early as 2021 under Tan Sri Muhyiddin Yassin’s administration, which saw the formation of the National Mineral Council (MMN) and the adoption of the National Mineral Industry Transformation Plan 2020-2030.

Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad told Parliament in June that Malaysia has some 16.1 million tonnes of NR-REE worth about RM809.6 billion, which underscores Malaysia’s potential as an exporter of the valuable resources essential for manufacturing a range of high-tech devices.

These are located mainly in Johor, Kedah, Kelantan, Malacca, Negeri Sembilan, Pahang, Perak, Sarawak, Selangor, and Terengganu.

However, attempts to mine these minerals frequently draw criticism from environmental groups, as they concern over its environmental impact.