KUALA LUMPUR: Malaysia’s minerals industry, which produced major minerals worth RM6.18 billion last year, is set to grow this year and next, driven by increased exploration activities amid strong demand.
The estimated value of major minerals produced in 2010 was RM3.99 billion.
The number of approvals and renewals for exploration licences and mining leases increased last year with some 50 new mining leases granted by the state authorities last year over the 152 mining leases issued in 2010.
Malaysian Mineral and Geosciences Department Director General, Datuk Yunus Abdul Razak, said emerging economies have continued to be the prime movers behind the strong mineral demand in the last five years for their industrial purposes.
“It appears that the strong demand for minerals is showing no sign of slowing,” he told Bernama in an interview.
China, the world’s second largest economy by nominal gross domestic product (GDP) and by purchasing power parity after US, is leading the demand followed by other rapidly emerging economies such as India, Indonesia and Brazil, he said.
“Other positive development include the recovering US economy, which still remains a major mineral consumer, and the demand generated by the rebuilding of certain parts of Japan, which no doubt will use of plenty minerals and metals.”
Yunus believed that the country’s mineral industry has entered a new stage with most of the minerals produced experiencing an increase especially iron, gold and coal.
“Iron ore production has increased significantly from 1.5 million tonnes in 2010 to 7.6 million tonnes in 2011 while gold production has increased from 2,794 kg in 2009 to 4,215 kg last year,” he added.
Meanwhile, tin production in the country increased slightly to 3,346 tonnes last year from 2,668 tonnes previously.
He said the country’s estimated mineral deposits have been valued at about RM614 billion.
“Our gold resources was valued at RM2.6 billion; coal worth at RM197 billion, and tin deposit, still believed to be quite substantial, at approximately RM28 billion,” he added.
On the industry’s prospects he said: “It is our hope that Malaysia will again be a choice for global investors.”
“Just one new major finding can transform our nation from a minor to a major mineral producer. Our mineral resources are abundant.
“We need to make concerted effort to find them. Advances in technology today are giving better access, which can lead to the recovery of hitherto undiscovered deposits,” Yunus said.
Meanwhile, when asked on whether the government has set up any stringent rules or policy for environmental safety amid environment concerns on mining activities, Yunus said the issue of sustainable development was even more prominent in Malaysia.
“It cannot be denied that in the past, the mineral industry has left behind a legacy of environment mismanagement and degradation.
“Today, more than ever more before, environmental concern and sustainable development have become the guiding force for the future development of society, globally.”
He said the Second National Mineral Policy has been specifically formulated to focus, among others on the sustainable development and optimum utilisation of mineral resources and promoting environmental stewardship.
“Hence, the sustainable development of mineral resources has to be looked into a wider and broader perspective, integrating full range of economy, environmental and social values in the development and use of mineral and metals,” he added. –Bernama