TANAKA, MEP Establish RM70 Million Precious Metal Refinery in Malaysia

Japan-based TANAKA Precious Metal Technologies has announced plans to establish a precious metal refining joint venture with Malaysian resource recovery company MEP Enviro Technology Sdn. Bhd., expanding local recycling and materials processing capabilities for the semiconductor and electronics industries.

The new company, TANAKA MEP REFINERY SDN. BHD., will operate from Batu Kawan Industrial Park in Penang, with a planned investment of approximately RM70 million.

Under the ownership arrangement, TANAKA will hold a 66.7% stake, while MEP will control the remaining 33.3%.

The facility will process recovered precious metal materials and refine them to 4N purity, equivalent to 99.99%, for use in electronics and semiconductor manufacturing.

Construction formally began with a groundbreaking ceremony on 8 October 2026, attended by representatives from both companies, Penang Chief Minister Chow Kon Yeow and other government officials.

TANAKA expects the refinery to begin operations in April 2029.

New Facility to Produce High-Purity Gold for Semiconductor Applications

The planned refinery will occupy approximately three acres of land, with a built-up area of around 45,000 square feet.

Initial production will concentrate on 4N high-purity gold and potassium gold cyanide (PGC), materials used in the electrical, electronics and semiconductor industries.

According to MIDA, the first phase of the project will involve an investment of approximately RM35 million, with the remaining investment supporting the broader development of the facility.

The refinery will analyse and process recovered precious metal materials supplied through MEP's existing recovery operations.

MEP will undertake the initial processing of scrap materials, while the joint venture will handle detailed analysis, high-purity refining and the manufacture of precious metal products.

The company will also be involved in the import, export and sale of precious metal products, together with bullion trading, leasing and storage activities.

By combining material recovery and final refining within Malaysia, the partners intend to reduce the need to send recovered materials overseas for further processing.

TANAKA and MEP Expand Existing Recycling Partnership

The joint venture builds on a technical assistance agreement signed by TANAKA and MEP in August 2024, which focused on precious metal recovery in Malaysia.

Since then, the companies have worked together to develop recycling processes and establish the technical requirements for a larger refining operation.

TANAKA brings experience in precious metal processing, refining, quality control and production management.

MEP contributes established resource recovery operations and access to industrial scrap generated by electronics and other manufacturing activities.

Founded in 2005, MEP operates recovery facilities in Malaysia and maintains a presence across several Asian markets, including Thailand, Vietnam, the Philippines, Singapore and Hong Kong.

The company reported consolidated revenue of RM243.5 million for the financial year ending December 2025 and employs approximately 580 people across its operations.

The partnership will allow MEP to extend its activities beyond material collection and recovery into higher-purity refining, while giving TANAKA an additional processing base in Southeast Asia.

Malaysia Targets Greater Local Processing of Semiconductor Materials

Malaysia has an established semiconductor and electronics manufacturing industry, with Penang serving as one of the country's principal centres for assembly, testing, components and manufacturing services.

These activities generate production scrap containing recoverable precious metals, creating demand for specialised refining and recycling facilities.

The TANAKA-MEP project is intended to process these materials locally and return recovered metals to industrial supply chains.

According to Tomoyuki Tada, Chief Operating Officer of TANAKA Precious Metal Technologies, the facility is expected to become Malaysia's first refinery capable of producing precious metals at 4N purity.

Sean Ong, Director of MEP Enviro Technology, said the partnership would help establish a more complete recycling process, covering material recovery, high-purity refining and the supply of recycled materials back to manufacturers.

The Malaysian Investment Development Authority has supported the project and plans to continue working with the companies to identify opportunities for participation by domestic manufacturers and suppliers.

MIDA Chief Executive Officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the investment would add higher-value processing capabilities to Malaysia's manufacturing industry while supporting the semiconductor and electronics sectors.

TANAKA Strengthens Precious Metal Recycling Network Across ASEAN

TANAKA already operates precious metal recovery and refining facilities across Japan, Europe, North America, China and Taiwan.

The Malaysian joint venture will extend that network into a manufacturing market with substantial semiconductor and electronics activity.

The project also comes amid greater attention to industrial waste management and the recovery of valuable materials from manufacturing scrap and discarded electronic equipment.

Precious metals are widely used in electronic components, plating, electrical contacts and semiconductor manufacturing processes. Recovering these materials can reduce dependence on newly sourced metals and support manufacturers seeking to manage material costs and industrial waste.

For Malaysia, the new refinery could help retain more material processing activity within the country rather than exporting recovered scrap for final refining elsewhere.

The facility will also support regional manufacturers that require consistent supplies of high-purity precious metals for specialised applications.

However, the project's contribution to the semiconductor supply chain will depend on the volume and quality of recovered materials, refining capacity and successful qualification of its products by industrial customers.

With construction under way and commercial operations targeted for 2029, the next stages will involve completing the facility, installing refining equipment and preparing production processes to meet the purity and quality requirements of semiconductor and electronics manufacturers