TANAKA and MEP Establish Precious Metal Recycling Joint Venture in Malaysia

Photo Credit: TANAKA

Malaysia will expand its precious metal refining capabilities through a new joint venture between Japan-based TANAKA Precious Metal Technologies Co., Ltd. and Malaysian resource recovery company MEP Enviro Technology Sdn. Bhd. The venture, TANAKA MEP REFINERY SDN. BHD., will establish a facility in Penang, with operations scheduled to begin in April 2029.

The project will serve manufacturers across Malaysia and the wider ASEAN region, where semiconductor, electronics and component production generates scrap containing recoverable precious metals. By developing local refining capacity, the partners aim to return these materials to industrial supply chains rather than relying solely on processing facilities elsewhere.

TANAKA will hold a 66.7% stake in the joint venture, while MEP will own the remaining 33.3%. The new company will analyse recovered materials, refine precious metals to a purity of 99.99% (4N), and manufacture, import, export and sell precious metal products. Its activities will also include trading, leasing and storing precious metal bullion.

Initial production is expected to focus on high-purity gold and potassium gold cyanide (PGC), which are used in the electrical and electronics (E&E) and semiconductor industries. MEP will supply recovered materials following preliminary processing, while TANAKA will contribute its expertise in precious metal refining, processing, quality control and production management.

The companies have been developing their cooperation since signing a technical assistance agreement for precious metal recovery in August 2024. The new venture represents a further step towards establishing an integrated precious metal recycling operation within Malaysia, linking material recovery with high-purity refining and downstream industrial applications.

Construction preparations have already advanced. A groundbreaking ceremony took place at the planned site in Batu Kawan Industrial Park on October 8, 2026, attended by company representatives and government officials. The facility is expected to strengthen Penang’s industrial ecosystem by adding specialised refining capacity that serves regional electronics and semiconductor manufacturers.

The investment also forms part of TANAKA’s broader effort to expand its global precious metal recycling network, which includes recovery and refining operations in Japan, Europe, North America, China and Taiwan. Establishing a presence in Malaysia is expected to reinforce the company’s recycling activities across ASEAN, where demand for resource recovery is growing alongside manufacturing activity and greater emphasis on circular resource use.

Source: TANAKA

SUNSHINE Spotlight: The joint venture highlights the importance of connecting material recovery with specialised refining capacity. For electronics and semiconductor supply chains, recovering precious metals is only part of the process; returning them to industrial use also requires reliable analysis, high-purity processing and established downstream demand. Investments that bring these stages closer together could strengthen regional resource circulation and reduce dependence on distant refining facilities.