Government confident of double-digit growth for mining sector

by **hlk** Fri 13 Jul 2012, 20:48

KUALA LUMPUR: The Government is confident that the mining sector
will see a double-digit growth following the incentives given to
investors.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the incentives included tax benefits and the issuance of more mining licences and concessions.
Speaking
at the opening of the Asian Mining and Energy Investment (AMEI) Forum,
he said that while much of the mining activities had been in oil and
gas, there were also opportunities in other areas like gold, iron ore,
tin and coal.
“More than a year ago, we decided to provide
generous incentives to enable restorations and explorations for mining
in the oil and gas field and it is working,” he said.
Mustapa said that due to the focus on oil and gas, there were not many activities in iron ore, gold and manganese.
But the high gold prices, around US$1,600 per troy ounce, would motivate investors to explore gold mining once again.
“It
is a sector that has not been fashionable for many years. With good
prices, people will invest in this sector and there will be an increase
in export,” he added.
Mustapa said that with the technology available, there were now more possibilities including re-exploring old mining sites.
According to him, the country produced an average of 3,000 to 3,500 kg of gold in the past three years.
Mustapa
also said that when mining activities were carried out, the Government
would ensure regulations were enforced to preserve the environment.
Mineral and Geosciences Department director-general Datuk Yunus Abdul Razak said the mineral sector might emerge as one of the National Key Economics Areas in the future.
Currently, three licenses were issued for gold mining activities in Raub, Kuala Lipis and Selinsing.
Raub and Kuala Lipis now contribute 90% of gold mined in Malaysia.
As
for tin, Yunus said: “We produce about 2,000 tonnes per year. We import
them from Indonesia, Myanmar and African countries for smelting
processes so that it can fetch a higher value.”
He said the country's mineral exports stood at RM800mil in 2010.