GOLD mining may not be a new activity in
Malaysia but it is sad to see minimal efforts being taken to develop the
lucrative business on a larger scale.
This
is particularly when the country is endowed with huge gold deposits
stretching from the major Eastern Gold Belt stretching from Kelantan,
Terengganu, Pahang right down to Johor as well as in Sabah all waiting
to be fully explored.
Gold remains a safe haven investment among investors to guard against inflation and geopolitical turmoil.
Pahang has the largest gold
mine in Malaysia at Penjom, Kuala Lipis which contributed almost 95% to
total domestic gold production.
There are also five gold mines in Jeli, Kelantan as well as six gold mines in Raub and Kuala Lipis still being excavated for commercial mining. The latest finding for the precious metal is in Mersing, Johor and Lubuk Mandi in Terengganu.
There are also five gold mines in Jeli, Kelantan as well as six gold mines in Raub and Kuala Lipis still being excavated for commercial mining. The latest finding for the precious metal is in Mersing, Johor and Lubuk Mandi in Terengganu.
There are several impediments among gold miners.
Some quarters maintained that it would not be economical to undertake gold mining activities in Malaysia.
The
Eastern Gold Belt, for example, may be rich with gold deposits but it
is mostly in “hard rock” formation. In other words, huge capital
investment would be needed to undertake prospecting, exploration and
mining.
Apart from that, potential miners would also have to deal with other major costs issues.
These
include high “tribute” request (payment between the owner of the mining
lease and the mining operator) which could reach up to 10%, standard
royalty of about 5% paid to the state on the minerals to be produced,
corporate tax for the rehabilitation fund and the corporate
responsibility (CR) work.
Therefore, it
is suffice to say that only major mining groups are capable of
undertaking such high risks. On the other hand, mid and small-scale
miners might have to take a back seat even though gold mining prospects
in Malaysia certainly look promising and lucrative.
Excerpt from The Star 2011
Excerpt from The Star 2011
http://www.thestar.com.my/business/business-news/2011/04/26/mining-of-huge-msian-gold-deposits-affected-by-rocky-issues/
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