GEORGE TOWN: The Penang government has started discussion with several companies related to rare earth elements (REE) mining in the state.
State Environment Committee chairman Datuk Seri S. Sundarajoo said a visit to the pilot project in Perak is being arranged to study the method of implementation and benefits to be derived in terms of revenue returns to the state in a
comprehensive manner.
"The state government is conducting discussion and research about REE field exploration mining.
"In fact, several companies have met us to make the necessary presentations
"This is something new to us. As such, we need to study the matter to see how best we can proceed with this efforts," he said in his winding up speech at the state legislative assembly sitting here today.
"All this is to ensure that the initiative implemented is in accordance with the conditions and guidelines set by the relevant agencies to protect environmental interest," Sundarajoo added.
In his winding up speech during last November's state legislative assembly sitting, Chief Minister Chow Kon Yeow had revealed that Penang had REE worth RM100 billion.
He said it was based on sample testings in various locations in Teluk Bahang, Balik Pulau and around Nibong Tebal by the Department of Mineral and Geoscience.
At present, Penang has the Mineral Enactment 2001, which came into force on Jan 1, 2006.
Meanwhile, answering a question by Connie Tan (DAP- Seri Delima) on hydrocarbon potential in the Langkasuka Basin, Sundarajoo said there has yet to be any discussion between the state government and Petronas on the matter.
This, he said, was due to Petronas' request to complete the data analysis process.
"The state government is still
in the discussion stage to maximise the discovery of
hydrocarbon in Penang based on survey results which will be carried out by Petronas later.
"The state government, through related agencies, will work together to ensure this project meets the needs and wishes of the state government," he said.
It was reported in November last year that Petronas had undertaken a new offshore multi-client 2D seismic survey in the northern area of the Straits of Melaka to explore and map the hydrocarbon potential in the open blocks of PM320 and PM321 of the Langkasuka Basin.
The survey would increase the availability of a larger pool seismic data, leading to a higher probability of discovering hydrocarbon potential which, in turn, was expected to attract prospective investors in future bid rounds.
This ongoing seismic survey covered an area of over 38,000 square kilometres with the aim of acquiring approximately 8,000 kilometres (km) of new 2D seismic data.
It was designed to provide superior quality seismic data for prospecting the pre-Tertiary targets.
