OCTOBER 13 — Rare Earth Elements (REEs) are a group of 17 metallic elements which are found beneath the Earth’s surface in the Earth’s crust.
Accordingly, RREs constitute “land”. By definition, the word includes, among others, “the earth below the surface and all substances therein”. (See Section 3 of the National Land Code)
Land, in turn, is a state matter. (See Item 2 of the State List of the Ninth Schedule of the Federal Constitution).
More than a year ago in August, then Acting Minister of Natural Resources and Environmental Sustainability (NRES) Datuk Seri Johari Abdul Ghani had explained that his ministry had no plans to establish a centralised body to regulate Malaysia’s REE industry.
Johari cited constitutional provisions — that is, the State List in the Ninth Schedule — as giving states authority over mining permits, leases and licences.
The minister also alluded to objections from state governments, saying several states had raised concerns during engagement sessions, viewing the proposal as an attempt to nationalise state-owned mineral resources.
Any move to centralise REE regulation therefore would require in-depth study and close consultation with all state governments to safeguard their rights.
Johari said so when winding up the 13th Malaysia Plan (13MP) debate for his ministry.
Petroleum resources are different. The Federal List in the Ninth Schedule includes Item 8 on “Trade, commerce and industry” which in turn includes “Development of mineral resources; mines, mining, minerals and mineral ores; oils and oilfields; purchase, sale, import and export of minerals and mineral ores; petroleum products; regulation of labour and safety in mines and oilfields” subject to Item 2(c) in the State List.
So, it is curious that Opposition Leader Datuk Seri Hamzah Zainudin should propose the establishment of a national entity to manage REE as a new source of national wealth in the post-petroleum era.
Hamzah said the entity — to be known as Reenas — was necessary to prevent non-radioactive raw materials worth more than RM800 billion from being sold cheaply without value-added processing or lost through illegal mining activities.
The intentions are good.
Five months ago, Professor Datuk Dr Ahmad Ibrahim wrote on REE as follows:
“Now, we face a new frontier: rare earths. The world is clamoring for them. They are the invisible heartbeat of electric vehicles, smartphones, and advanced defense systems. And here we sit, on potentially significant deposits. It is a second chance at industrial glory. But immediately, the scaremongers emerge. We hear the same words—radiation, thorium, danger—but this time they are amplified by a global network of non-governmental organizations and a sensationalist media. We must ask ourselves a hard question: Why?”
The reason may be in the famous saying: the road to hell is paved with good intentions.
It means that merely intending to do something good is not enough, and well-meaning actions can often lead to disastrous or harmful results.
Perhaps Johari was right: in-depth study and close consultation with all state governments to safeguard their rights are required.
That’s what federalism is all about.
If a centralised body to regulate Malaysia’s REE industry must not be seen as an attempt to nationalise state-owned mineral resources, what more a Petronas-like national entity on REE.
* This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
