Managing mining sector sustainably and responsibly

Published on: Sunday, May 28, 2023

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Globally, mining is considered an upstream activity within the mineral industry. Hence, having a regulated mining sector will widen the door for a complete up-to-down stream of sustainable mineral development in Malaysia. - pix by Freepik

I COMMEND the Federal Government’s commitment to implementing comprehensive enforcement on illegal mining activities in the country. By establishing a well-defined policy framework, the government is demonstrating its dedication to managing the mining sector in a sustainable and responsible manner.

Globally, mining is considered an upstream activity within the mineral industry. Hence, having a regulated mining sector will widen the door for a complete up-to-down stream of sustainable mineral development in Malaysia, especially within the Northern Corridor Economic Region (NCER) where the highly sought-after metallic minerals (such as gold, tin and iron) and non radioactive Rare Earth Elements (nREEs) can be potentially explored and mined.

The report mentions that the policy has undergone extensive consultations with relevant stakeholders, including industry experts, environmental organisations and the local communities.

This inclusive approach is crucial for ensuring that the policy reflects diverse perspectives and incorporates best practices from both local and international contexts.

While the report provides a positive outlook on the proposed policy, it lacks details pertaining to its key components and objectives. It would be beneficial to provide the public and investors with more insights into its core principles, regulatory measures and overall vision.

Considering the following, do we really need to launch a new policy to declare war on illegal miners and wait for another three months to roll it out?

In April 2021, Malaysia launched its latest strategic framework towards a sustainable mineral development strategy. Called “Pelan Transformasi Industri Mineral Negara 2021-2030” (TIM 2021-2030), it is aligned with the National Mineral Policy 2 (NMP2), which was rolled out in 2009.

One of the eight strategic goals identified in TIM 2021-2030 is governance, where existing acts and regulations need to be coordinated between the Federal and state governments to drive the development of the country’s mineral industry (i.e. enforcement against illegal mining activity).

What happened to TIM 2021-2030? It is crucial for the government to prioritise transparency and accountability when drafting and implementing any mining policy.

The public in general, and investors in particular, should have access to information about the policy’s development, its current implementation and mid-term reviews, intended outcomes, and the mechanisms in place for monitoring and enforcement.

Regular progress updates and opportunities for private and public participation will foster trust and ensure that the policy effectively addresses the concerns of all stakeholders.

In his comments, Deputy Prime Minister Datuk Seri Fadillah Yusof did not state clearly whether the new policy would replace TIM 2021-2030 or NMP2.

Whatever the direction will be, given the environmental impacts associated with mining activities, it is essential that the policy prioritises environmental conservation and adoption of sustainable practices.

Measures such as strict environmental impact assessments, reclamation plans, and the promotion of responsible mining techniques, should be integral to the policy.

Additionally, the policy should encourage the exploration and utilisation of less environmentally damaging sources of energy and minerals. Moreover, inclusivity and equitable distribution of benefits should be at the core of the national mining policy.

Local communities affected by mining operations should be actively engaged in decision- making processes, and be adequately compensated for any adverse impacts.

The policy should also emphasise the development of local skills, employment opportunities, and infrastructure, to ensure that mining activities contribute to the socioeconomic well-being of the communities involved.

I believe there is no need for a new policy or strategic framework. Instead, the government should leverage the current policy (TIM 2021-2030 under NMP2) and review its implementation before proposing any improvements or updates.

Nevertheless, admitting that there is a problem with illegal miners is undoubtedly a positive step towards addressing the challenges posed by mining activities in Malaysia. It reflects the government’s commitment to sustainable development and responsible resource extraction.

However, to fully appreciate the significance of any policy, it is crucial for the government to be transparent and accountable in providing more details on its objectives, strategies and mechanisms for implementation, as well as actively engaging with stakeholders throughout the process.

By doing so, the government can build trust, promote transparency, and ensure that the policy leads to a more environmentally sustainable and socially inclusive mining sector in Malaysia.

Khaliq Abdul