Latest news with #NREC
Focus Malaysia
4 days ago
- Business
- Focus Malaysia
Consider PETRONAS-like model to develop our REE industry
DENG Xiaoping once made a shrewd prediction. He said, 'The Middle East has oil, China has rare earths'. Rare earth element (REE) is now indispensable as the world catches the net-zero fever. It is not just limited to use in the electric vehicle but has found strategic use in the military as well. China controls more than 85% of supply, therefore making it an effective bargaining chip for China. Rare earths have become a critical feature of a sustainable world. Venturing into the rare earths industry presents a strategic opportunity for Malaysia, with the PETRONAS model for oil and gas offering useful lessons. There is a suggestion to establish a government-linked company (GLC)—the National Rare Earths Corporation (NREC)—to mirror PETRONAS in overseeing all aspects of the value chain including exploration and mining, processing and refining, downstream manufacturing, research and development (R&D) and innovation, as well as strategic trade and diplomacy. The idea emphasises decentralised operations with centralised oversight. While NREC handles strategy and international relations, state-level operations could be managed by State Rare Earths Boards, which ensure local benefit-sharing and stakeholder involvement. Rare earth mining often faces backlash due to pollution. Malaysia should position itself as a global model for ethical rare earth production. Avoid the 'resource curse' by focusing not just on mining but also advanced material production such as rare earth alloys. R&D investments in alternative materials, recycling, and process improvements should be a strategy. There should be strategic stockpiling and trade policy and this involves coordinating trade through government-to-government (G2G) or long-term offtake agreements to avoid market manipulation. It is important to maintain neutral, non-aligned trade diplomacy to stay out of great power rivalries. The issue of governance, transparency should be addressed. Adopt international best practices in governance. Publish regular ESG reports and include civil society in oversight processes. Can the PETRONAS model be repeated? Yes, but with adaptation. PETRONAS succeeded due to strong legal backing (Petroleum Development Act), technical capability-building, and international partnerships. For rare earths, transparency, sustainability, and geopolitical neutrality will be more important than in oil & gas. It has been reported that Malaysia's focus now is on its rare earths-bearing ion-adsorption clay (IAC) deposits overlying the granite bodies along the peninsula's spine. The advantage of the IAC deposits is that there is essentially no thorium in them. Some preliminary investigation work has reported an inferred amount of some 16.2 million tonnes of REE in the country. There is now only one operating mine in Kenering, Gerik and there is now also one Proof-of-Concept (POC) midstream processing plant in Simpang Pulai. Some industry players now on the alert on another potential money spinner in the rare earths business in the form of thorium. The rising demand for thorium in new-generation nuclear energy designs is rooted in the push for safer, cleaner, and more sustainable nuclear power systems, and it has emerged as a fuel in advanced reactors. New designs like the Molten Salt Reactors (MSRs) and Liquid Fluoride Thorium Reactors (LFTRs) are optimised to use thorium efficiently. These so-called Generation IV reactors promise inherent safety (e.g., passive shutdown systems), less long-lived radioactive waste, higher fuel efficiency, and reduced weapons proliferation risk. As countries move away from fossil fuels, nuclear power is seen as a reliable base-load clean energy source. In this case, thorium is seen as a better long-term nuclear option due to greater abundance and reduced risks compared to uranium. India, China, and some Western research institutions are heavily investing in thorium-based reactor designs. India's 'three-stage nuclear programme' relies significantly on thorium as the country has vast reserves. China is testing MSR prototypes in the Gobi Desert, specifically targeting thorium fuel cycles. Monazite sands, a by-product of REE processing, often contain thorium. Malaysia already processes rare earth elements (Lynas in Gebeng), and thorium is present in the waste streams (typically stored as radioactive waste). This existing material could potentially be re-evaluated and extracted as a valuable resource instead of waste. There are caveats, however. Rare earths have a smaller market and more complex processing routes and environmental risks are greater if mismanaged. Global geopolitics around critical minerals is intense—neutral positioning is key. Malaysia has the chance to lead not just in rare earth mining, but in sustainable, responsible resource governance. A hybrid PETRONAS model—state-led but innovation-driven, transparent, and green—can position Malaysia as a respected player in the global critical minerals economy. The reality is we cannot just sit back without taking the right actions to profitably harness billions from Malaysia's reasonably rich rare earths deposits. We must not squander the opportunity. – May 23, 2025 The author is affiliated with the Tan Sri Omar Centre for STI Policy Studies at UCSI University and is an associate fellow at the Ungku Aziz Centre for Development Studies, Universiti Malaya. The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia. Main image: Unsplash/Benjamin Zorn
Zawya
25-05-2025
- Business
- Zawya
NREC shareholders approve distribution of 5% bonus shares
RELATED TOPICS EQUITIES RELATED COMPANIES NREC Agility NREC Sultan Center Xinda Invt Hldg Kuwait: National Real Estate Company (NREC) held its Annual Ordinary General Assembly Meeting (AGM) today for the financial year ended 31 December 2024, with a quorum of 69.3%. The meeting was conducted electronically. The Company's shareholders approved all agenda items, including the Board's recommendation to distribute 5% bonus shares, equivalent to 5 shares for every 100 shares held. Shareholders registered in the Company's shareholder records on the settlement date of 25 June 2025 will be entitled to these bonus shares, with the distribution date set for 6 July 2025. The AGM also elected a new Board of Directors for the next three-year term, which includes: Name Classification Mr. Hassan Bassam Al-Houry Independent Mr. Faisal Jamil Sultan Al Essa Executive Mr. Bader Abdulmohsen El Jeaan Non-Executive Agility Investment Holding Limited, represented by Mr. Mohamed Hamad Abdulaziz Al Mutawaa Non-Executive The Sultan Center Food Products Co., represented by Mr. Tarek Abdul-Aziz Sultan Al Essa Non-Executive Mr. Christopher Michael Gordon Independent Financial and Operational Performance Overview In 2024, NREC recorded a net profit of KD 9.3 million and earnings per share of 4.91 fils, compared to a net loss of KD 35.2 million in 2023. Operating revenue stood at KD 5.8 million, down from KD 12.4 million the previous year. Total assets increased to KD 574 million, while shareholders' equity rose to KD 374 million. Operationally, the Company's key projects in Jordan and Libya continued to show resilience despite regional geopolitical challenges. South Aqaba Investment Park in Jordan maintained full occupancy across its warehouses and industrial buildings, while Palm City Residences in Libya improved occupancy to 61% by year-end, up from 58% in 2023. Strategic Focus and Value-Driven Investments NREC Vice Chairman and CEO Faisal Jamil Sultan Al-Essa reaffirmed the Company's commitment to enhancing shareholder value through a focused strategy. This includes the divestment of non-core assets, exploration of new investment opportunities in local and regional markets, and restructuring initiatives to support sustainable long-term growth. Sultan also emphasized the strategic importance of NREC's 22.3% stake in Agility Public Warehousing, highlighting confidence in its global leadership in supply chain innovation. In addition, NREC maintains investments in Agility Global, both directly and through Agility Public Warehousing. Agility Global manages a portfolio of prominent entities that includes Menzies Aviation, Tristar, and Agility Logistics Parks. Key Projects Milestones By the end of 2024, NREC marked major progress across its key projects. Reem Mall in Abu Dhabi officially opened in May, with over 197 retail units operational by year-end, highlighting strong leasing momentum. The $1.3 billion destination, co-invested by NREC, features more than 400 stores, 80 F&B outlets, and Snow Abu Dhabi, positioning it as a premier retail and leisure hub. Meanwhile, in Egypt, NREC's subsidiary KUWADICO had sold 83% of units in the Grand Heights project near Cairo as of year-end. The 3.8 million sqm development continued to progress steadily, offering a blend of residential, commercial, and recreational spaces designed to support a modern and sustainable community lifestyle. Commitment to Sustainability Sultan underscored NREC's focus on sustainability and responsible business practices: 'Sustainability is central to our operations and future growth. We are embedding responsible practices across our portfolio, with a focus on reducing environmental impact, fostering social inclusion, and upholding strong governance. Through our ESG initiatives, we aim to create lasting value for the communities we serve and support resilient, long-term growth for all stakeholders.' Closing Note Sultan concluded: 'I would like to extend my sincere appreciation to our shareholders for their continued support of the Company's strategic direction. I also wish to thank all our stakeholders for their continued trust and confidence in the Management team.' About NREC Established in 1973 and listed on Boursa Kuwait, National Real Estate Company (NREC) is a leading real estate investment, development, and property management firm based in the Middle East and North Africa. NREC's portfolio includes a diverse mix of retail, commercial, and residential properties across the region. For more information, please contact: Mageda Abbas –
New Straits Times
25-05-2025
- Business
- New Straits Times
Rare earths need Petronas-like oversight, scholar says
KUALA LUMPUR: Malaysia should consider replicating the Petronas model to develop its rare earth elements (REE) industry, ensuring strategic oversight, sustainable practices and long-term economic gains, a policy scholar said. Professor Datuk Dr Ahmad Ibrahim proposed the formation of a government-linked entity, tentatively named the National Rare Earths Corporation (NREC), to oversee the entire REE value chain. This would include upstream exploration, downstream manufacturing and international trade. "This mirrors the role Petronas played in Malaysia's oil and gas sector, but adapted to today's critical mineral needs and geopolitical landscape," said Ahmad, an associate fellow at Universiti Malaya's Ungku Aziz Centre for Development Studies. He said rare earths are becoming increasingly vital for clean energy and defence technologies. "Rare earths have become a critical feature of a sustainable world. China currently controls over 85 per cent of global supply, and this dominance gives it significant geopolitical leverage," he said in a statement. "Malaysia must not sit back while holding untapped resources." Malaysia's known REE deposits include ion-adsorption clay (IAC), found in the granite-rich spine of Peninsular Malaysia. Ahmad noted that the country holds an estimated 16.2 million tonnes of REE. No thorium has been detected in the IAC, making it safer to develop. "Venturing into rare earths presents a strategic opportunity for Malaysia, but the approach must be structured, transparent and forward-looking," he said. He called for decentralised operations under central oversight. Under this model, NREC would manage national strategy and global partnerships, while state-level Rare Earth Boards ensure local benefit-sharing and environmental compliance. "Malaysia should position itself as a global model for ethical rare earth production. The goal is to avoid the 'resource curse' and focus on value-added production like rare earth alloys," Ahmad said. He also highlighted the potential value of thorium, a radioactive by-product of rare earth processing, in next-generation nuclear reactors. "New reactor designs like Molten Salt Reactors and Liquid Fluoride Thorium Reactors are gaining traction globally due to their safety and sustainability," he said. Malaysia, he added, could re-evaluate thorium currently stored as waste in facilities such as Lynas in Gebeng. However, Ahmad cautioned that the rare earths market is smaller and technically more complex than oil, with higher environmental and geopolitical risks. "Transparency, sustainability and geopolitical neutrality will be more important than in oil and gas. But the rewards, if managed well, could be just as significant." He urged the government to adopt international best practices in governance, publish regular ESG reports and include civil society in oversight processes. "The Petronas model succeeded due to strong legal backing, technical capability-building and global partnerships. These principles remain relevant but must be adapted for today's environmental and geopolitical realities. "We must not squander this opportunity. A hybrid Petronas model — state-led but innovation-driven, transparent and green — can position Malaysia as a respected player in the global critical minerals economy."
Malay Mail
23-05-2025
- Business
- Malay Mail
Consider Petronas-like model to develop Malaysia's REE industry — Ahmad Ibrahim
MAY 23 — Deng Xiaoping once made a shrewd prediction. He said, 'The Middle East has oil, China has Rare Earths'. Rare earth is now indispensable as the world catches the netzero fever. Not just limited to use in the electric vehicle. But has found strategic use in the military. China controls more than 85 per cent of supply. It is an effective bargaining chip for China. Rare earths have become a critical feature of a sustainable world. Venturing into the rare earths industry presents a strategic opportunity for Malaysia. The Petronas model for oil and gas offers useful lessons. There is a suggestion to establish a government-linked company GLC, the National Rare Earths Corporation (NREC), to mirror Petronas in overseeing all aspects of the value chain including exploration and mining, processing and refining, downstream manufacturing, R&D and innovation, as well as strategic trade and diplomacy The idea emphasises decentralised operations, with centralised oversight. While NREC handles strategy and international relations, state-level operations could be managed by State Rare Earths Boards, which ensure local benefit-sharing and stakeholder involvement. Rare earth mining often faces backlash due to pollution. Malaysia should position itself as a global model for ethical rare earth production. Avoid the 'resource curse' by focusing not just on mining but also advanced material production such as rare earth alloys. R&D investments in alternative materials, recycling, and process improvements should be a strategy. There should be strategic stockpiling and trade policy. This involves coordinating trade through G2G or long-term offtake agreements to avoid market manipulation. Important to maintain neutral, non-aligned trade diplomacy to stay out of great power rivalries. The issue of governance, transparency should be addressed. Adopt international best practices in governance. Publish regular ESG reports and include civil society in oversight processes. Can the Petronas model be repeated? Yes, but with adaptation. Petronas succeeded due to strong legal backing (Petroleum Development Act), technical capability-building, and international partnerships. For rare earths, transparency, sustainability, and geopolitical neutrality will be more important than in oil & gas. The Petronas Twin Towers — a symbol of Malaysia's energy success. — Unsplash pic It has been reported that Malaysia's focus now is on its rare earths-bearing ion-adsorption clay (IAC) deposits overlying the granite bodies along the peninsular's spine. The advantage of the IAC deposits is that there is essentially no thorium in them. Some preliminary investigation work has reported an inferred amount of some 16.2 million tonnes of REE in the country. There is now only 1 operating mine in Kenering, Gerik, there is now also one Proof-of-Concept (POC) midstream processing plant in Simpang Pulai. Of course Lynas has been around for years now. Some industry players alert on another potential money spinner in the rare earths business, thorium. The rising demand for thorium in new-generation nuclear energy designs is rooted in the push for safer, cleaner, and more sustainable nuclear power systems. Thorium has emerged as a fuel in advanced reactors. New designs like the Molten Salt Reactors (MSRs) and Liquid Fluoride Thorium Reactors (LFTRs) are optimised to use thorium efficiently. These so-called Generation IV reactors promise inherent safety (e.g., passive shutdown systems), less long-lived radioactive waste, higher fuel efficiency, and reduced weapons proliferation risk. As countries move away from fossil fuels, nuclear power is seen as a reliable base-load clean energy source. Thorium is seen as a better long-term nuclear option due to greater abundance and reduced risks compared to uranium. India, China, and some Western research institutions are heavily investing in thorium-based reactor designs. India's 'three-stage nuclear program' relies significantly on thorium, as the country has vast reserves. China is testing MSR prototypes in the Gobi Desert, specifically targeting thorium fuel cycles. And Malaysia can participate in supplying Thorium. Monazite sands, a by-product of rare earth element (REE) processing, often contain thorium. Malaysia already processes rare earth elements (Lynas in Gebeng), and thorium is present in the waste streams (typically stored as radioactive waste). This existing material could potentially be re-evaluated and extracted as a valuable resource instead of waste. There are caveats. Rare earths have a smaller market and more complex processing routes. Environmental risks are greater if mismanaged. Global geopolitics around critical minerals is intense—neutral positioning is key. Malaysia has the chance to lead not just in rare earth mining, but in sustainable, responsible resource governance. A hybrid Petronas model — state-led but innovation-driven, transparent, and green — can position Malaysia as a respected player in the global critical minerals economy. The reality is we cannot just sit back without taking the right actions to profitably harness billions from Malaysia's reasonably rich rare earths deposits. We must not squander the opportunity. *The author Datuk Ahmad Ibrahim is affiliated with the Tan Sri Omar Centre for STI Policy Studies at UCSI University and is an associate fellow at the Ungku Aziz Centre for Development Studies, Universiti Malaya. He can be reached at [email protected] **This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
Zawya
16-05-2025
- Business
- Zawya
NREC reports a net profit of KD 1.2mln for Q1/2025
EBITDA: KD 3.4 million Total Assets: KD 551 million Q1 2025 (Million KD) Q1 2024 (Million KD) Variance (%) Operating Revenue 0.8 1.5 -45% Net Revenue 0.6 0.9 -32% EBITDA 3.4 4.8 -30% Net Profit (Loss) 1.2 2.9 -58% EPS (fils) 0.64 1.55 -59% Kuwait: National Real Estate Company (NREC) has announced its financial and operational results for the quarter ended March 31, 2025. The Company reported a net profit of KD 1.2 million and earnings per share (EPS) of 0.64 fils, compared to a net profit of KD 2.9 million and an EPS of 1.55 fils during the same period in 2024. The Company recorded operating revenue of KD 0.8 million for the period ended March 31, 2025, representing a 45% decline compared to the same period in 2024. As of March 31, 2025, total assets amounted to KD 551 million. NREC Vice Chairman and Chief Executive Officer, Faisal Jamil Sultan Al-Essa, commented: 'Our first-quarter results are in line with our expectations and reflect our continued alignment with strategic goals, even as market conditions change.' 'We continue to focus on strengthening our core portfolio, optimizing the performance of operational assets, and delivering long-term, sustainable value for our shareholders across the markets in which we operate.' Board Recommendation to Increase Issued Capital The Company's Board of Directors has recommended an increase in the Company's issued capital. This recommendation is subject to the approval of the Extraordinary General Assembly of Shareholders. Strategic Investments and Key Project Highlights: Delivering Sustainable Returns across Our Markets NREC's Investment in Agility: Enhancing Shareholder Value Sultan said, 'NREC's 22.3% stake in Agility Public Warehousing reflects our commitment to long-term value. Agility continues to lead in supply chain innovation, driving both growth and operational efficiency.' He continued: 'NREC is also an investor in Agility Global, both directly and through Agility Public Warehousing. Agility Global manages several prominent companies like Menzies Aviation, Tristar, and Agility Logistics Parks.' Sultan concluded: 'This strategic investment underscores our confidence in Agility's ongoing growth and its alignment with NREC's objective of creating sustainable, long-term value for our shareholders.' Key Projects Update Reem Mall – Abu Dhabi: A Leading Lifestyle Destination Following its successful launch in 2024, Reem Mall continued to perform strongly in Q1 2025, with more retail units opening and consistent visitor footfall. 'With attractions like Snow Abu Dhabi, along with a wide variety of stores and restaurants, Reem Mall is fast becoming one of Abu Dhabi's premier lifestyle and entertainment destinations,' said Sultan. NREC is a co-investor in the $1.3 billion project, which features over 400 stores, 80 F&B concepts, Snow Abu Dhabi, and digital innovations that enhance the customer experience. Grand Heights – Egypt: A Modern, Integrated Community near Cairo Sultan said: 'The Grand Heights project, developed by KUWADICO, continues to make steady progress in its development. This fully integrated, gated community is designed to provide residents with a modern, secure, and sustainable living environment. It combines residential, commercial, and recreational spaces, offering a balanced lifestyle in a prime location near Cairo.' He added: 'The development spans 3.8 million square meters and is being executed in phases to meet the growing demand for premium housing options in the area.' South Aqaba Investment Park – Jordan NREC's logistics and industrial park in South Aqaba continues to perform steadily, maintaining full occupancy and generating stable rental income. 'Even amid regional uncertainties, the park has maintained strong performance, highlighting its resilience and operational strength,' said Sultan, highlighting its contribution amid broader regional challenges. Strengthening the Portfolio to Support Long-Term Growth 'We continue to focus on optimizing our portfolio in line with NREC's long-term strategic objectives,' said Sultan. 'This includes enhancing the performance of our core assets, divesting from non-strategic holdings, and actively pursuing new local and regional investment opportunities that support sustainable growth and create long-term value for our shareholders.' Commitment to Sustainability: Building a Responsible Future Sultan said, 'At the group level, sustainability is a core part of how we operate and grow at NREC. We're committed to embedding responsible practices across our businesses, from minimizing environmental impact to promoting social inclusion and upholding strong governance. Through our ESG efforts, we aim to make a meaningful difference in the communities we serve and create long-term, resilient value for all stakeholders.' Established in 1973 and listed in Boursa Kuwait, National Real Estate Company (NREC) is a real estate investment, development and property manager based in the Middle East and North Africa. The Company's portfolio comprises a mix of retail, commercial, and residential properties in the region. For more information, please contact: Mageda Abbas – M: +965 66878225 –
