Penang:TANAKA MEP Refinery Sdn Bhd has commenced construction on a RM70 million precious metal refining facility at Batu Kawan Industrial Park, marking the start of Malaysia's first 4N precious metal refinery.

According to BERNAMA News Agency, the refinery is a collaboration between Japan-based TANAKA Precious Metal Technologies Co Ltd and Malaysia-based MEP Enviro Technology Sdn Bhd. The facility aims to produce precious metals with a purity level of 99.99 percent, enhancing Malaysia's refining technology capabilities.

Sean Ong, director of MEP Enviro Technology, stated that the partnership seeks to establish a comprehensive precious metal recycling value chain. This includes recovery, high-purity refining, and reintegrating valuable materials into the manufacturing supply chain.

The facility is expected to begin commercial operations in the first quarter of 2029 and aspires to meet international standards. It will support the production of high-purity precious metals for customers in Malaysia and the ASEAN region.

Tomoyuki Tada, COO of TANAKA Precious Metal Technologies, mentioned that the facility will bolster Penang's high-value precious metal recovery and refining capabilities, benefiting regional electrical, electronics, and semiconductor industries. The refinery will enhance Penang's manufacturing ecosystem through high-purity refining capabilities, contributing to a circular industrial value chain.

The facility will cover three acres with a 45,000 square foot built-up area. The first phase, costing RM35 million, will focus on producing high-purity gold and potassium gold cyanide (PGC), which are crucial for the electronics and semiconductor industries.

Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO of MIDA, commented that the facility will strengthen Malaysia's capacity in precious metal recovery and refining, supporting downstream industries such as the E and E and semiconductor sectors. He emphasized the importance of investments that promote a more integrated and circular manufacturing ecosystem.

Chief Minister Chow Kon Yeow highlighted the significance of localizing gold production for the semiconductor industry, noting that a shorter supply chain minimizes risks, reduces costs, and ensures faster delivery, especially during global uncertainties.

The groundbreaking ceremony was officiated by Penang Yang Dipertua Negeri Tun Ramli Ngah Talib.