The Mineral Industry of Malaysia in 2000
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THE MINERAL INDUSTRY OF 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 THE MINERAL INDUSTRY OF MALAYSIA—2000 16.1 Trade Commodity Review According to the Department of Statistics (Malaysia), total Metals exports increased by 16.1% to $98 billion, and total imports increased by 25.7% to $82 billion in 2000. Malaysia’s Aluminum and Bauxite.—In 2000, Johore Mining and merchandise trade surplus shrank by 16.7% to $16 billion Stevedoring Co. Sdn. Bhd. (JMSC) at Teluk Ramunia and because of increased imports in 2000 (Ministry of International Lembaga Kemajuan Johor Tenggara at Sungai Rengit each Trade and Industry, 2000, Malaysia’s trade performance [1999- operated a bauxite mine in Johor. All bauxite ore was delivered 2000], accessed May 2, 2001, at URL http://www.miti.gov.my/ to JMSC’s processing plant at Bukit Raja, near Sungai Rengit, trdind/annu1.htm). It remained a net exporter of minerals in for crushing, screening, and washing. The processing plant 2000 because of its large exports of hydrocarbons in the form of produced cement-, chemical-, and refractory-grade bauxite. LNG, crude petroleum, and refined petroleum products. In Cement-grade bauxite was sold to the domestic cement 2000, minerals exports totaled $9.4 billion and accounted for manufacturers, and chemical- and refractory-grade bauxite were 9.6% of total exports. Minerals imports totaled $4.2 billion and exported mainly to Japan, Taiwan, Thailand, and the United accounted for 5.1% of total imports. Malaysia had a minerals States (Minerals and Geoscience Department [Malaysia], trade surplus of $5.2 billion in 2000. 2000b, p. 8). The major mineral exports were crude petroleum valued at According to the MGD, other bauxite resources were located $3.9 billion; LNG, $3.4 billion; refined petroleum products, at Bukit Goh-Jabor Valley with indicated reserves of 66 million $1.9 billion; and other mineral products, $207.9 million. metric tons (Mt) in Pahang; at Bukit Gebong, Lundu-Semantan, Among the major mineral imports, refined petroleum products Tanjung Sebearang, and Bukit Batu in Sarawak; and at Bukit were valued at $2.2 billion; crude petroleum, $1.3 billion; metal Mengkabau and in the lower Labuk Valley areas in Sabah ore and scrap, $183.8 million; crude minerals, $168.3 million; (Minerals and Geoscience Department [Malaysia], 2000b, p. and other mineral products, $300.9 million (Ministry of 10). International Trade and Industry, 2000, Export by products In October, Perak State proposed to build an aluminum [1999-2000], accessed April 4, 2001, at URL smelter with a capacity of 250,000 metric tons per year (t/yr) at http://www.miti.gov.my/trdind/annu4.htm; Ministry of a site near the port of Lumut. According to the China Metals International Trade and Industry, 2000, Import by products Newsletter report, China Nonferrous Metal Foreign [1999-2000], accessed April 4, 2001, at URL Construction Co. was asked to design and build the plant at an http://www.miti.gov.my/trdind/annu5.htm). estimated cost of $2 billion (Mining Journal, 2000a). According to Perak’s State Development Corp. (SDC), the Structure of the Mineral Industry proposed capacity for the aluminum smelter was revised to 500,000 t/yr. Kaiser Aluminum Corp. and Charus Development Malaysia’s mining industry consisted of a small sector of coal Corp. of the Unites States, which were the potential partners in and nonferrous metals mining, a small mineral-processing the project, reportedly had discussions with the SDC, but no sector of ferrous and nonferrous metals, and a large mining and decision had been made. Under the proposed plan, Malaysia processing sector of industrial minerals and oil and gas. With would import alumina from overseas sources, and electrical the exception of oil and gas, mining and mineral-processing power for the smelter would be supplied largely by the businesses were owned and operated by private companies Janamanjun coal-fired powerplant, which was still under incorporated in Malaysia.