Why was compounding favoured over court action for REE mining?

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Compounding Favoured Over Court Action to Ensure State Revenue from Illegal REE Mining Losses

The Kedah state government opted for compounding over court action in the case of illegal rare earth element (REE) mining to ensure that the financial penalties directly benefited state coffers. This decision was based on recommendations from the Kedah Forestry Department to the Deputy Public Prosecutor, aiming to recoup losses incurred from the illicit activity. By issuing compounds, the state government secured RM630,000 from a Chinese national responsible for illegal REE mining and trespassing within the Bukit Enggang forest reserve.
State Revenue Maximisation Through Compounding

The primary rationale for favouring compounding was the direct financial benefit to the state government. Mentri Besar Datuk Seri Muhammad Sanusi Md Nor explained that the maximum compound amount collected goes into the state government's coffers. This contrasts with court proceedings, where any fines levied would be directed to the federal government. This strategic choice underscores the state's focus on retaining revenue generated from penalties related to illegal resource extraction within its jurisdiction.
Financial Recoupment from Illegal Activities

The compounding process resulted in a significant financial recoupment for the Kedah government. The Chinese national involved paid a RM500,000 compound for the illegal REE mining activities and an additional RM130,000 for trespassing into the Bukit Enggang forest reserve. These payments were made on October 11, following the arrest of the individual and a lorry driver on September 26.
Forestry Department's Role and Recommendations

The Kedah Forestry Department played a crucial role in the process by recommending action to the Deputy Public Prosecutor. Following the department's recommendations, the state government was advised that compounding was the preferred course of action. The department had also taken direct action by halting the illegal REE mining in Compartment 12 of the Bukit Enggang Forest Reserve and destroying the equipment used.
Seizure and Disposal of Illicitly Mined REE

In addition to the compounds, the illegal mining operation also led to the seizure of rare earth elements. The value of the seized rare earth elements was estimated at RM391,360.91, based on a market value of RM35,257.74 per metric tonne as of September 30. These materials had undergone laboratory testing by the Kedah Department of Minerals and Geosciences, which confirmed the presence of rare earth elements in the sludge cake. The seized material is slated for disposal upon obtaining approval from state authorities.

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Why was compounding favoured over court action for REE mining?

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