By DayakDaily Team
KUCHING, July 24: Japan-based AML Holdings LLC has signed a Memorandum of Understanding (MoU) with Kelstone Sdn Bhd to secure a stable and sustainable supply line of rare earth and critical metals, including manganese, for its subsidiary, Pertama Ferroalloys Sdn Bhd, as well as to fulfill material needs for other producers across the steelmaking, battery, and semiconductor industries in Sarawak, Peninsula Malaysia, Japan, Korea and other global markets.
The strategic agreement was signed on Tuesday (July 21) at the Deputy Chief Minister of Kelantan’s Office, in a ceremony witnessed by Deputy Chief Minister Dato’ Dr Mohamed Fadzli Hassan. Kelstone Sdn Bhd is a wholly owned subsidiary of the Kelantan State Economic Development Corporation (PKINK).
According to a media release today, the partnership aims to unlock Kelantan’s vast potential for rare metals, critical minerals, and strategic resources such as manganese and silicon, driving industrial and economic growth across both Kelantan and Sarawak.
Under the MoU framework, the initiative encompasses an industrial-scale mining effort focused on extracting and processing rare metals locally within Kelantan, ensuring significant in-state value is added prior to export or downstream utilisation.
Subject to successful exploration, feasibility studies, and regulatory approvals, raw manganese ore extracted from Kelantan will be transported to Pertama Ferroalloys’ integrated production complex in Samalaju Industrial Park in Bintulu, Sarawak.
At the Bintulu facility, the raw ore will undergo advanced beneficiation before being processed into high-value manganese metals destined for major international and domestic producers.
By directly linking Kelantan’s raw mineral wealth with Sarawak’s established heavy-industry infrastructure, the collaboration establishes a historic precedent for West-East Malaysia economic integration.
This strategic link position Sarawak as an industrial anchor, effectively reducing Malaysia’s reliance on imported feedstock while shifting the country away from raw material exports.
The initiative also emphasises sustainability, leveraging Kelantan’s rich mineral deposits alongside Pertama Ferroalloys’ utilisation of clean, renewable energy sourced from Sarawak Energy.
Beyond securing essential feedstocks, the venture serves as a socio-economic catalyst for Kelantan and Sarawak by attracting foreign direct investment, creating high-skilled local employment, and boosting demand across local logistics, port operations, engineering contractors, and technical testing laboratories.
To execute the initial phase, a newly formed Joint Technical Committee will immediately oversee geological and commercial feasibility studies. The joint body leverages AML Holdings’ exploration expertise, Pertama Ferroalloys’ manufacturing and international marketing network, and Kelstone’s state-level regulatory and stakeholder facilitation in Kelantan. — DayakDaily
