ALOR SETAR: The Kedah government has recouped losses caused by illegal mining of rare earth elements (REE) in Sik through the issuance of compounds to a Chinese national found responsible for the activity.

Menteri Besar Datuk Seri Muhammad Sanusi Md Nor said the man, on Oct 11, paid a compound of RM500,000 for illegal REE mining and another RM130,000 for trespassing the Bukit Enggang forest reserve in Sik.

"This is following recommendations to the Deputy Public Prosecutor by the Kedah Forestry Department for action to be taken," he said during the question and answer session at the State Legislative Assembly sitting here today.

Muhammad Sanusi was replying to Johari Abdul (PKR-Gurun) who asked for developments on the illegal REE mining issue in Bukit Enggang.

He said the state government was advised that the case should be compounded rather than taken to court as the maximum compound would go into state government coffers.

"Otherwise, if it was taken to court, then the fine would go to the Federal Government," he said.

He said the seized rare earth elements were estimated to be worth RM391,360.91, according to market value on Sept 30 last with an estimate of RM35,257.74 per metric tonne.

The material had been seized and would be disposed of after obtaining the approval of the state authorities, he added.

Muhammad Sanusi said the Chinese national and a lorry driver transporting the REE load were arrested and remanded on Sept 26.

He said the Inductively Coupled Plasma Mass Spectrometry (ICPMS) laboratory test conducted by the Kedah Department of Minerals and Geosciences found that the seized sludge cake (REE Carbonate) contained rare earth elements.

"The Forestry Department has taken action by stopping illegal REE mining activities in Compartment 12 of the Bukit Enggang Forest Reserve and by destroying the equipment used for REE mining," he said.

Meanwhile, he also denied any involvement by the Kedah Menteri Besar Corporation (MBI) in any REE exploration and mining activities in the Bukit Enggang Forest Reserve.

Muhammad Sanusi said this is because exploration and mining in the area have not yet started as the Ministry of Natural Resources (KeTSA) has not yet issued a complete set of standard operating procedures (SOP) related to the activity.

"MBI and Prospek Suria (company) are in a 15:85 joint venture with the company given one (mining) lot. Yes, there is permission to explore but the joint venture has yet to take effect and there is no (mining) activity as we are still waiting for the SOP.

"The one who stole (REE) is a Chinese national and the one who paid the compound is not Sobri Osman, who heads MBI," he said when replying to a supplementary question by Datuk Dr Ismail Salleh (AMANAH-Pengkalan Kundor).

-- BERNAMA