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9318000
9318000
MALAYSIA
By John C. Wu
Malaysia has large resources of tin and such tin-associated Federal Government for inspection and regulation of mineral
minerals as ilmenite, monazite, and struverite, which is a exploration and mining and other related issues. However, as of
columbium (niobium)-tantalum-bearing mineral. It has also 2000, only the States of Sabah and Selangor had adopted the
substantial resources of natural gas and crude petroleum. In State minerals enactment, which provides to the States the
2000, Malaysia’s tin reserves ranked as the world’s third largest powers and rights to issue mineral prospecting and exploration
(Carlin, 2001), and its reserves of natural gas and crude licenses and mining leases and other related matters (Asian
petroleum ranked 12th and 26th in the world, respectively (Oil Journal of Mining, 2000b, p. 16).
& Gas Journal, 2000c). Among the identified mineral In line with the national mineral policy, the Geological
resources, a greater portion of reserves of barite, bauxite, Survey Department and the Mines Department merged into the
bentonite, clays, copper, gold, iron ore, limestone, silica, and tin new Minerals and Geoscience Department [Malaysia] (MGD) in
and its associated minerals have already been developed and July 1999. The missions of the MGD are to facilitate the
exploited. In 2000, Malaysia was the world’s third largest speedy development and diversification of Malaysia’s mineral
producer and exporter of liquefied natural gas (LNG), the industry in a more coordinated manner and to intensify the use
world’s fourth largest producer of refined tin, the world’s sixth of geoscience for socioeconomic improvement. The MGD
largest producer of rare earths, and the seventh largest producer conducted activities in mineral exploration, mineral economics,
of mined tin (Hedrick, 2001; World Bureau of Metal Statistics, mine enforcement, geologic mapping, hydrogeology,
2001, p. 120). engineering geology, environmental geology, information
In 2000, Malaysia’s economy, as measured by gross domestic management, laboratory and field consulting, and mineral
product (GDP), continued the 1999 positive growth path. research and development (Minerals and Geoscience
Malaysia’s GDP, in 1987 constant dollars, grew by 8.3% in Department [Malaysia], 2000, About us, accessed May 1, 2001,
2000 compared with 6.1% (revised) in 1999. The higher GDP at URL http://www.jmg.gov.my/welcome/welcome.html).
growth in 2000 was attributed mainly to a higher growth in the
output of the manufacturing sector, which grew by 21.0% in Environmental Issues
2000 compared with 13.5% in 1999. In contrast, the output of
Malaysia’s mining sector continued its 1999 negative growth Under the national mineral policy, a mining lease application
path with a 0.5% negative growth in 2000 compared with a must include an environmental protection plan that was
3.1% negative growth in 1999 (Department of Statistics approved by the Department of Environment of the Ministry of
[Malaysia], April 2001, Key statistics, accessed June 7, 2001, at Science, Technology, and Environment. The environmental
URL http://www.statistics.gov.my/english/keystats.html). The aspects of mine development are regulated by the
mining sector, which continued to play an important role in Environmental Quality (Prescribed Activities) (Environmental
supplying basic raw materials to the construction and Impact Assessment) Order 1987, which was an amendment to
manufacturing sectors for Malaysia’s economic development, the Environmental Quality Act of 1974. Under Order 1987, an
remained important to the country’s economy in 2000. environmental impact assessment was required for mining lease
According to the Department of Statistics [Malaysia], the areas that are more than 250 hectares (ha); for areas in which
mining sector contributed 6.7% to Malaysia’s GDP compared aluminum, bauxite, copper, gold, and tantalum ore are
with 7.2% (revised) in 1999. Malaysia’s GDP, in 1987 constant processed; and areas of sand dredging that are more than 50 ha
dollars, was estimated to be $55.1 billion, of which $3.7 billion (Department of Environment, 1993, p. 12, 16).
was contributed by the mining sector in 2000 (Central Bank of
Malaysia, 2000, Statistics—VI.2 Gross domestic product by Production
kind of economic activity at 1987 constant prices, accessed
April 30, 2001, at URL http://www.bnm.gov.my/pub/msb/ In 2000, Malaysia’s minerals production included barite,
200012/vi_02.pdf). bauxite, coal, dolomite, feldspar, gold, ilmenite, iron ore, kaolin,
limestone, mica, monazite, natural gas, crude petroleum, sand
Government Policies and Program and gravel, silica, struverite, tin, and zircon concentrate.
Malaysia no longer produced copper and silver (as a byproduct
To support the mineral industry, the Government adopted a of copper mining) because the country’s only copper mine the
new national mineral policy in 1994 and established the Mamut Mine near Ranau, Sabah, ceased operations in
National Mineral Council in 2000 to oversee the overall September 1999. Production of mineral fuels included coal,
integrated development of the mineral industry and to assure natural gas, and crude petroleum. Production of processed
such development would meet its policy objectives. The mineral products included cement, LNG, nitrogen fertilizer
National Mineral Council also was charged with coordinating materials (ammonia and urea), refined petroleum products,
relations between the Federal and State Governments. The crude steel, titanium dioxide pigment, and refined tin (table 1).
Federal Minerals Act 525 of 1994 defines the powers of the
Sources: Ministry of Primary Industry, Minerals and Geoscience Department (Kuala Lumpur), Malaysian Minerals Yearbook 1999; Department of Statistics
(Kuala Lumpur), Monthly Statistical Bulletin, March 2001; Tin Industry (Research and Development) Board, Malaysian Tin Bulletin, Appendixes 3-4, v. 12, no. 3,
March 2001; and U.S. Geological Survey Minerals Questionnaire, 2000.
TABLE 2
MALAYSIA: STRUCTURE OF THE MINERAL INDUSTRY IN 2000