The memorandum of understanding between the Perak State Development Corporation (PSDC) and a Hong Kong firm to conduct a feasibility study to explore and mine rare earth minerals in Bukit Merah has been revoked with immediate effect, Mentri Besar Datuk Seri Dr Zambry Abd Kadir said.
He said the state government had instructed PSDC to cancel the MoU because the project could pose a threat to the safety and well-being of the people.
“We have directed PSDC to inform the firm concerned CVM Minerals Limited that the MoU will no longer be valid and both parties have no problem over the decision.
“The state government is firm in not issuing any licence for projects that are sensitive in nature and detrimental to the people’s health.
“As far as we are concerned, the matter is closed. I hope no one will politicise the matter,” he said.
In a filing with the Hong Kong Stock Exchange on Friday, CVM Minerals executive chairman Goh Sin Huat said the firm was notified by PSDC that the Perak Government would not issue any permit or licence to mine rare earth minerals.
“Therefore, the company will no longer pursue the project.
“The company would like to inform that it has withdrawn the application for the rare earth exploration permit submitted on April 18 and after further deliberation, PSDC and the company have mutually agreed to terminate the non-legally binding MoU dated April 18,” the filing stated.
Dr Zambry said the cancellation of the MoU was not due to pressure from Opposition parties but solely after taking into consideration the safety and health of the people.
Perak Health, Local Government and Environment Committee chairman Datuk Dr Mah Hang Soon said the matter should serve as a lesson to other government-linked companies not to act without prior consultations with the state government.
“The signing of the MoU put us in a bad light and created unnecessary public anxiety. This must not be repeated in the future and I hope all GLCs will take heed and be more tactful in future dealings involving projects sensitive in nature,” he said.
