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Malaysia Suspends Rare Earths, Tin Mining Operations after River Water Turns Blue

Metals and Mining

Business Honor Malaysia Halts Rare Earths & Tin Mining

Business Honor
21 November, 2025

Malaysia suspends operations at a rare earth site and two tin mines after an investigation into river pollution.

The operations of a rare earth site and two tin mines located in Western Perak state have been suspended by Malaysia after an investigation into complaints that a portion of a key river had turned bright blue, according to the ministry of natural resources and sustainable environment. Minister Johari Abdul Ghani told parliament on Wednesday that state officials made an inquiry after public reports concerning discolored water and health issues in a part of the Perak River, the second longest river on the Malaysian peninsula. Johari said initial inquiries found discharge at the rare earths mining site operated by MCRE Resources Sdn Bhd that matched the watercolor in the river. Johari went on to say that radiation readings of as much as 13 Becquerels were found at the mining site, well above the one Becquerel limit allowed in the project's initial environmental impact assessment report.

"The inquiry is currently centered on the nature of chemicals utilized during the mining and if they align with the information that has been provided to the authorities," Johari stated. MCRE did not reply promptly to a request for comment concerning Johari's comments. According to its website, MCRE has been looking to tap into surging global demand for the minerals from Malaysia, with approximately 16 million tons of rare earths deposits, but does not possess the technological expertise to mine and process rare earths.

It has engaged in talks with China, the world's leader in rare earths mining and processing, about a possible refinery and last month, signed a deal with the United States on development in rare earths. In a separate release on Wednesday, the ministry stated it has issued suspension notices to MCRE and two tin mining companies following inspections revealed they did not comply with regulations on effluent discharge, erosion and sediment control, and chemical management. The ministry said the suspensions took place after complaints of pollution in several rivers in Perak.