Tanaka MEP Breaks Ground on RM70 Million Penang Refinery With 2029 Operations Target

Tanaka MEP Refinery broke ground on a planned RM70 million precious metal refinery in Penang on Oct. 8, adding a materials-recovery project for electronics manufacturers that is expected to begin commercial operations in early 2029.

The joint venture brings together Japan's Tanaka Precious Metal Technologies and Malaysia's MEP Enviro Technology. The factory at Batu Kawan Industrial Park will initially produce high-purity gold and potassium gold cyanide for electronics and semiconductor applications, according to the Malaysian Investment Development Authority.

The project covers about three acres and a planned built-up area of 45,000 square feet. MIDA described the completed facility as Malaysia's first precious metal refinery capable of producing 4N material, meaning a purity of 99.99%. The designation refers to metal purity, rather than a semiconductor manufacturing process.

A Factory Project With a 2029 Target

The first phase carries an investment of RM35 million, MEP director Sean Ong said at the ceremony, Bernama reported. Commercial operations are expected in the first quarter of 2029, with customers envisaged in Malaysia and across ASEAN.

The announcement marks a construction milestone. It does not mean the refinery is already supplying manufacturers. The first-phase amount is also distinct from the RM70 million investment cited for the project; the figures should not be added together.

Penang Chief Minister Chow Kon Yeow linked the project to reducing the distance industrial inputs travel before reaching local factories. He said shorter supply chains could speed deliveries and lower manufacturers' costs, particularly during international disruption, according to Bernama. Those are anticipated benefits rather than measured results from an operating plant.

Why Gold Matters to Electronics

Gold has industrial uses beyond jewellery. Chow said gold and gold compounds are used to plate and connect small components inside semiconductor chips, Penang's Buletin Mutiara reported. He described a local loop in which gold recovered from factories could be refined at Batu Kawan and returned to manufacturing.

The difference between collecting valuable material and returning a usable industrial input is central to the project's purpose. Recovery brings metal out of waste or scrap; refining raises its purity so it can re-enter production. The partners said they want to connect those activities into a more complete recycling chain.

Tanaka's technical product information illustrates the range of gold's semiconductor applications. Its gold electroplating processes cover bonding pads and wafer bumps, while other formulations are designed for wafer wiring and fine patterns. The company identifies bondability, heat resistance and solderability among the properties sought for semiconductor components.

That broader product range provides context for the demand for refined materials. It is not a list of products confirmed for the new Penang factory, whose announced initial output is high-purity gold and potassium gold cyanide.

Returning Metals to Production

Tanaka describes its existing recovery and refining business as spanning collection, refining and remanufacturing. It processes both solid and liquid materials, including printed circuit boards, integrated circuits, used industrial targets and plating waste solutions.

Its published capabilities include pretreatment, metal analysis and chemical and thermal refining methods. Those descriptions explain how a precious metal recycling business can serve manufacturers at several stages, rather than simply selling bullion.

For Penang, the next step is turning the announced project into an operating facility. The commercial timetable remains a target, and claims about shorter supply chains and greater resource reuse will depend on the plant's eventual implementation and production.