KUALA LUMPUR (Reuters) -Malaysia has suspended operations at a rare earth site and two tin mines in western Perak state following an investigation into complaints that a stretch of a major river had turned bright blue, the natural resources and environment ministry said.
Minister Johari Abdul Ghani told parliament on Wednesday that authorities had launched a probe after public reports about discoloured water in a part of the Perak River, the second-longest on the Malaysian peninsula.
Initial investigations found discharges at the rare earths mining site, operated by MCRE Resources Sdn Bhd, which matched the colour of the water in the river, Johari said.
Radiation readings at the site were also found to be as high as 13 becquerels, far above the 1 becquerel limit permitted under the project’s initial environmental impact assessment report, he added.
“The investigation is now focusing on the type of chemicals used in the mining process and whether it is consistent with the information that has been reported to the authorities,” Johari said.
MCRE did not immediately respond to a request for comment about Johari’s remarks.
According to its website, MCRE operates Malaysia’s pioneer rare earths mining project, using a method known as in-situ leaching, with technology shared by Chinese rare earth firms.
Malaysia, which has an estimated 16 million tons of rare earths deposits, has been seeking to capitalise on growing global demand for the minerals, but lacks the technological know-how to mine and process them.
It has been in talks with China, the world’s leader in rare earths mining and processing, on a potential refinery, and last month signed a deal with the United States on rare earths development.
In a separate statement on Wednesday, the ministry said it had issued suspension orders to MCRE as well as two tin mining companies after inspections found they were not complying with regulations related to effluent discharge, erosion and sediment control, and chemical management.
The suspensions were made following complaints of pollution at several rivers in Perak, the ministry said.
(Reporting by Rozanna Latiff; Additional reporting by Danial Azhar; Editing by David Stanway)
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