Exercise Caution Over Discovery Of Rare Earth Elements In Penang
The Consumers Association of Penang (CAP) and Sahabat Alam Malaysia (SAM) urge the Penang State Government to exercise caution regarding its enthusiasm over the recent discovery of rare earth elements purportedly valued at RM87 billion within the state. We advise the government to thoroughly assess the potential environmental, social, and economic impacts before making any decisions about the exploitation of these resources.
We have been opposing rare earth mining, no matter the mining method used, for its devastating impacts on the environment and human health. We have a dark history on mining where it has left a legacy of waste behind with little lessons learnt especially in relation to the Bukit Merah Asian Rare Earth case near Ipoh, Perak. We should not allow for history to repeat itself.
According to the International Renewable Energy Agency (IRENA), producing one tonne of REEs results in 2,000 tonnes of toxic waste, including 75 cubic meters of wastewater and a tonne of radioactive waste. Hence, we do not support REE mining even for our national purpose, especially when much of these resources are located in environmentally sensitive areas (ESAs) including in permanent forest reserves and biodiverse ecosystems or near settlements of indigenous peoples and local communities. This is even more so in Penang, a small island and mainland state where there is a high likelihood that most of these deposits may be within environmentally sensitive places and close to local communities.
As regards mining involving In-situ leaching, this still requires a clearing of one-third of the vegetation and poses a more serious risk to groundwater pollution. The use of ammonium sulphate as a leaching solution can cause sulphate pollution, which persists long after mining ceases, through exacerbated nutrient pollution of downstream rivers and reservoirs, along with increasing microbial production of hydrogen sulphide, an extremely toxic substance to many aquatic organisms and plants.
The government has not even prepared a plan let alone an adequate one to deal with all the long term radioactive waste that would be generated once the mining is done. Where would they be disposed, who will manage the waste and on whose funds? Mining companies will come and go. It’s the citizens and tax payers of this country who will have to suffer all the consequences that stem from this dirty industry.
Having no foresight on any of these, the government should not just be looking at raking in profits from this type of investments. Instead, it must undertake a comprehensive evaluation of the long-term risks, prioritising the protection of our environment and communities over short-term economic gains. By placing profits above precaution, we risk perpetuating the same mistakes that have marred our environmental history and undermined public health. The Penang government must fully recognise the irreversible costs associated with rare earth mining and shift their focus from immediate financial gains to sustainable development. To safeguard Penang’s future, we must prevent the any irreversible environmental harm onto our fragile environment. We must act responsibly today to preserve our natural heritage, ensuring that future generations inherit a healthy and thriving Penang.
Both the federal and state governments should not be blinded by promises of billions and trillions of ringgit in relation to the rare-earth industry, which has to be viewed as a dirty and toxic industry. Malaysia must get its priorities right and put the environment at the centre, and not continue to damage our natural resources, in the name of generating economic wealth.
Clearly, we are not learning from lessons of the past on what it takes to be truly sustainable, but instead are leaving a toxic legacy for generations to come.
Mohideen Abdul Kader
President
Consumers Association of Penang
Meenakshi Raman
President
Sahabat Alam Malaysia
Letter To The Editor, 27 November 2025