Resolution Criteria

The market resolves YES if MCRE Resources receives approval to resume operations in 2025, as verified by an official statement from Malaysia's Ministry of Natural Resources and Environmental Sustainability (NRES) or the Minerals and Geoscience Department (JMG). The market resolves NO if no such approval is granted by December 31, 2025.

Background

MCRE Resources commenced mining of rare earth elements in Perak state in 2022. MCRE Resources is involved in the mining of rare earth elements, using in situ leaching — a method that involves pouring chemicals directly into the ground.

The Cabinet approved a three-week suspension of operations on MCRE Resources following the recent incident of Sungai Perak water changing colour. Discharge samples from MCRE Resources site showed a bluish tone matching the river discoloration, and waste from the in-situ leaching process recorded radiation readings of up to 13 becquerels, far above the one becquerel limit allowed in the environmental impact assessment. Investigations found non-compliance with conditions on effluent discharge, erosion and sediment control, and chemical management.

Considerations

The suspension will remain until all corrective and technical improvements are fully implemented and verified. The timeline for implementing these improvements and obtaining formal approval is uncertain, making the 2025 deadline a meaningful test of the company's remediation efforts.