KOTA BARU, Nov 14 — The proposal to prevent any foreign company from monopolising the management of the rare earth elements (REE) industry in Kelantan presents an opportunity for the state government to better manage its natural resources, said Kelantan Deputy Menteri Besar Datuk Dr Mohamed Fadzli Hassan.

He said that the federal government’s suggestion also grants the state government the right to negotiate with any mining company.

"Kelantan warmly welcomes this proposal, and so far, many companies, not just Lynas Malaysia Sdn Bhd, have shown interest and held discussions with us,” he told reporters after the state executive council meeting at the Kota Darulnaim Complex today.

"At the moment, we are identifying mining companies that are truly capable and can offer better proposals.”

Elaborating further, Mohamed Fadzli said that the state government not only intends to carry out mining activities but also aims to set up processing plants in Kelantan to maximise profits.

Earlier, Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad was reported to have said that the government would utilise the Mineral Development Act 1994 and existing Federal Constitution in managing REE.

He said that the federal government did not intend to encourage a monopoly company for managing REE in the country, similar to how Petroliam Nasional Berhad (Petronas) operates in the oil and gas sector.

Commenting on the proposal for the construction of a security and flood wall along the Malaysia-Thailand border, he said the state government would cooperate with the federal government to discuss the matter.

"The border between Kelantan and Thailand is actually not a state border but a national border, and it is the responsibility of the federal government,” he said.

"Therefore, the construction of the wall will not only address security concerns but also involve the development of border towns such as Rantau Panjang and Pengkalan Kubor.”

On November 5, the Kelantan government announced plans to propose to the federal government the construction of a wall spanning approximately 100 kilometres along the state’s border with Thailand.

The project is seen as crucial in combating smuggling activities and addressing flood issues. — Bernama