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 signs of slowing,” he in an interview.
China, the world’s second largest economy by nominal gross domestic product 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.
Yunus believes that the country’s mineral industry has entered a new stage with most of the minerals produced experiencing a rise, 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 kilogrammes in 2009 to 4,215 kilogrammes last year,” he added.
Meanwhile, tin production in the country rose slightly to 3,346 tonnes last year from 2,668 tonnes previously.
Yunus said the country’s estimated mineral deposits have been valued at about RM614 billion.
“Our gold resources were 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, Yunus 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,” he said.
Source: Business Times Dated: 25/08/2012
