Southern Alliance Mining: MCRE Resources Resumes Operations After Suspension Lifted
Southern Alliance Mining: MCRE Resources Sdn Bhd Resumes Operations After Suspension Lifted
Date: 16 January 2026
Key Highlights
- Suspension Orders Lifted: MCRE Resources Sdn Bhd, a 40%-owned joint operation of Southern Alliance Mining Ltd. (SAM), has resumed operations after Malaysian regulatory authorities lifted temporary suspension orders.
- Nature of Suspension: The suspension was due to non-compliance issues related to operational and environmental management procedures, not due to the Sungai Perak water discolouration incident.
- Comprehensive Remedial Actions: All non-compliance issues identified by authorities have been fully addressed, and operations have formally restarted.
- Unrelated to Previous Incident: The company clarified that the Sungai Perak incident in 2025, which drew regulatory scrutiny, was not connected to MCRE’s suspension.
Details of Non-Compliance and Remedial Actions
In late 2025, the Minerals and Geoscience Department and Department of Environment issued temporary work suspension orders to MCRE Resources Sdn Bhd after identifying several non-compliance areas:
- Eight instances related to the Erosion and Sedimentation Control Plan (ESCP), including surface run-off water discharge exceeding permissible parameters under the Minerals Development Rules (Effluent) 2016.
- Three cases of deviation from approved workflows.
- Two issues concerning reporting requirements.
- One issue each regarding scheduled waste management, Environmental Management Plan (EMP) compliance, and the appointment of a competent environmental officer.
To address these issues, MCRE worked closely with the authorities and implemented comprehensive corrective measures. After verification by regulators, the company was allowed to resume operations as of 15 January 2026.
Clarification on Sungai Perak Discolouration Incident
MCRE and Southern Alliance Mining emphasized that the suspension was not related to the Sungai Perak discolouration incident reported in October 2025. The Department of Environment’s investigation into the river incident focused on three mining operations in the upper reaches of Sungai Perak in Gerik, but MCRE’s suspension was due to separate procedural and operational matters.
Management’s Statement
“We are pleased that the work suspension orders have been lifted following MCRE’s constructive engagement with the Minerals and Geoscience Department and the Department of Environment. The technical and procedural non-compliances identified during their inspections have been fully addressed and the necessary remedial measures successfully implemented.
It is important to emphasise that these matters were entirely separate from the Sungai Perak discolouration incident reported in late 2025. MCRE remains committed to maintaining rigorous environmental and operational standards, and we will continue to work closely with all relevant authorities to ensure full compliance with regulatory requirements. MCRE is pleased to have restarted operations and looks forward to contributing responsibly to Malaysia’s rare earth sector.”
– Dato’ Sri Pek Kok Sam, Managing Director, Southern Alliance Mining
About Southern Alliance Mining Ltd
Southern Alliance Mining Ltd. is a leading producer of high-grade iron ore in Malaysia, listed on Catalist of the Singapore Exchange since June 2020. Its primary asset, the Chaah Mine, comprises two mining leases covering 225.7 hectares in Pahang, Malaysia. The company operates four fixed crushing plants, two mobile crusher lines, and two beneficiation plants, with a production capacity of approximately 60,000 tonnes of iron ore concentrates per month.
The Group has also expanded into gold and other precious metals, base metals, and commodity trading, with ongoing exploration activities in Johor since February 2022.
Potential Impact on Shareholders and Share Price Sensitivity
- Resumption of Operations: The lifting of the suspension allows MCRE, and by extension Southern Alliance Mining, to restore revenue streams from one of its key joint operations, which is potentially positive for future earnings and share value.
- Regulatory Compliance: Successful resolution of regulatory issues may improve investor confidence in the Group’s environmental and operational management, reducing perceived risk.
- Clear Separation from Sungai Perak Incident: Management’s explicit clarification that the suspension was not related to the widely reported environmental incident reduces reputational risk, which may also be price sensitive.
- Strategic Sector Growth: With the Group’s commitment to responsible rare earth mining and a record of engagement with regulators, there is potential upside as Malaysia’s mining sector grows.
Contact for Further Information
Disclaimer
This article is for informational purposes only and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Forward-looking statements in this article are subject to assumptions, risks, and uncertainties, and actual results may differ materially. Investors should conduct their own research and consult with a qualified professional before making investment decisions. The Singapore Exchange and the Company’s Sponsor have not examined or approved the contents herein and assume no responsibility for its accuracy.
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