PUTRAJAYA: State governments should strive to generate new economic resources from the mineral sector by opening more areas for mining activities, Deputy Prime Minister Datuk Seri Najib Tun Razak said here Monday.He said that this sector has huge potential as it was yet to be fully exploited.
"The state governments should strive to generate additional economic resources for the states and the country by developing the mineral sector," he said after chairing the fourth National Mineral Council meeting here Monday.
Najib said that to increase the sector's contribution, a proposal was made for state governments to offer a more suitable period for mining lease to those keen to mine minerals.
According to world standards, the suitable period is 21 years.
"As such state governments are urged to look at the possibility of extending the period," Najib said.
They should also ensure that the areas were suitable for commercial mining activities apart from making appropriate consideration for areas which have been identified but had been declared as forest reserve, national park, recreational park among others.
"It is appropriate that the state governments make such a consideration," (whether or not to amend the status to mining activities areas)," he said.
He said that seven state governments, which have yet to enforce the State Mineral Enactment, had assured the council that they would do so.
To date, only six states have enforced the new enactment, which was formulated to replace the previous one used since 1930s, Najib said.
He said that the enforcement of the enactment was important so that the responsibility of the Federal and State Government in the administration of the country's mineral industry could be effectively streamlined.
He said that Malaysia has billions of ringgit worth of minerals, with a large amount still not exploited.
The main area for huge mineral deposits is in Batu Arang, Sarawak where the various types of minerals were estimated to be worth some RM22.0 billion, he said.
Minerals which could be mined there include silica sand, bronze, gold, tin and aluminium.
Najib said that state governments should also take steps to identify areas which are suitable for mining activities in view of the high demand for minerals which could fetch good prices.
Extensive demand for tin regarded as the green metal, from China and India, the new world economic powers, and the jump in price which touched more than RM30,000 per tonne, could encourage the reopening of tin mines in the country, he said.-Bernama
