Kota Kinabalu: Sabah must strengthen environmental, social and governance (ESG) standards to ensure responsible mining as the State’s mineral industry grows, said Chief Minister’s Department Natural Resources Office Secretary Datuk Sernam Singh (pic).
Speaking at the “ESG for Mining in Sabah” plenary session at 9th Sabah International Surveyors Congress in here, on Tuesday, he said the State’s long mining history, from coal and gold operations under the British North Borneo Government in the 1800s to the Mamut Copper Mine (1975–1999) and the ongoing Bukit Mantri gold mine.
“Our mining history shows both the opportunities and the risks of mineral development.
“If we are to move forward, we must ensure that the mistakes of the past, such as the long-term impact at the former Mamut Copper Mine are never repeated,” he said.
Sernam said Sabah is currently exploring minerals including gold, silver, copper, nickel, cobalt, bauxite and coal under Prospecting Licences, while gold and silver mining continues at Bukit Mantri and Tundong, Tawau under Mining Leases.
He warned that mining can have serious impacts, including land degradation, water and air pollution, deforestation, biodiversity loss, greenhouse gas emissions and social disruption.
“ESG is not just a policy trend, it is a fundamental requirement for modern mining.
“It strengthens trust, safeguards communities and ensures that development benefits everyone,” he said.
Environmental protection under ESG includes conducting Environmental Impact Assessments (EIAs), which evaluate how projects affect air, water, soil and biodiversity, and Environmental and Social Impact Assessments (Esias), which also consider impacts on communities and livelihoods.
These assessments guide mining companies in planning, mitigation and responsible closure of mines.
On social responsibility, he said mining operators must put communities at the centre of decision-making.
“FPIC, fair compensation, community engagement and human rights protections must be standard practice,” he said.
Local employment, skills development and social investment are also key priorities.
He underlined that governance must be reinforced through full regulatory compliance, anti-corruption policies, fiscal transparency and monitoring mechanisms.
“If we expect investors and communities to trust the system, we must uphold the highest standards of integrity,” he said.
The government is taking concrete steps to embed ESG principles in licences, require ESIAs for prospecting, introduce rehabilitation bonds, enforce labour standards and mandate global reporting standards.
Sabah will also adopt the JORC Code for prospecting, amend mining laws to include ESG principles and establish a State-level ESG Committee.
“Our goal is a mining sector that contributes to the economy without compromising the environment, indigenous rights or community wellbeing.
“With strong ESG governance, Sabah can build a mining industry that is transparent, sustainable and resilient for generations to come,” he said.
Several initiatives are already underway, including amendments to the Sabah Mining Ordinance 1960, the Sabah Mineral Development Blueprint 2026–2030, integration of social requirements into Prospecting Licences and Mining Leases, and the formation of an ESG Committee to oversee implementation.
