What RM21.1 million in royalties hinges on the export moratorium?

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Perak Seeks Exemption from NR-REE Export Moratorium to Retain RM21.1 Million in Royalties

The Perak state government has formally requested an exemption from the federal government's non-radioactive rare earth elements (NR-REE) export moratorium. This plea is primarily driven by the significant royalty revenue the state has accrued from NR-REE mining, which amounted to RM21.1 million between February and November of the previous year, particularly from operations in the Kenering Hulu Perak subdistrict. The state government stands to lose this substantial income if the federal authorities enforce the moratorium without an exemption for Perak.
State Revenue Tied to NR-REE Exports

Perak's state coffers have benefited considerably from NR-REE mining activities. The RM21.1 million in royalties collected from February to November last year represents a crucial source of revenue. These funds are largely attributed to mining operations situated within the Kenering Hulu Perak subdistrict. The potential cessation of these exports under the federal moratorium poses a direct threat to this established revenue stream for the state government.
Request for Ministry Exemption

In response to the federal moratorium, which took effect on January 1, the Menteri Besar of Perak, Datuk Seri Saarani Mohamad, has appealed to the Ministry of Natural Resources and Environmental Sustainability (NRES). The state is seeking a specific exemption to continue exporting NR-REE until a comprehensive policy is formulated and established by the ministry. This request highlights the state's immediate financial concerns linked to the ongoing mining activities.
Proposal for a National NR-REE Entity

Beyond seeking an exemption, the Perak state government has also proposed that NRES consider establishing a dedicated entity to act as a buyer for NR-REE. This suggestion arises from the presence of investors keen on developing both upstream and downstream industries related to these elements within Malaysia. The state hopes such an entity would facilitate the processing and purchase of NR-REE domestically, thereby creating value within the country and mitigating the impact of export restrictions.

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What RM21.1 million in royalties hinges on the export moratorium?

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