Masidi explains Tawau gold mining op
Published on: Saturday, April 27, 2024
By: Larry Ralon
“With the steps that have been and are being taken above, the State Government will still have absolute authority over licensing and mining activities in Sabah,” said Masidi.
Kota Kinabalu: Masidi also touched on the gold mining operation which is said to be illegal.
He said the company was granted approval to extend the Mining Operations Certificate (SKSPM) in Bukit Mantri, Tawau on April 8, 2024, from the Minerals and Geosciences Department.
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“The previous certificate expired on Oct 31, 2023, and had not been renewed at that time because the Environment Impact Assessment (EIA) report had not been submitted.
“However, no order to stop mining operations was issued by the Director of the Land and Survey Department (JTU) who is also the Chief Inspector of Mines based on the Mining Ordinance 1960.
“This is because Sabah is not subject to the Mineral Mining Act 1994 which requires companies to obtain the approval of the Mining Management Scheme (SKSPM) as stated in Section 10 of the Act. The mining system in Sabah is regulated by the Sabah Land Ordinance Cap 68 and the Mining Ordinance 1960.”
“There is no record of gold sales or any invoice received from the operator company, so the State Government has not collected gold royalties on the 254.51kg of gold bars produced.
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“The last time the Minerals and Geosciences Department issued a Letter of Determination of Sales and Percentage of Gold Content was on Feb 21, 2022.
“After that date, JTU has implemented a 5pc gold royalty rate calculated based on a copy of the invoice from the operator company to the buyer’s company which has been verified by the appointed licensed Assayer.
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“The State Government’s position is that gold mining operations in Tawau are legal under the Sabah Mining Ordinance 1960.
“The State Government has made a decision not to recognise the application of the Mineral Development Act 1994 (MDA) in Sabah and has initiated actions to strengthen the Sabah Mining Ordinance 1960 through the empowerment of the regulatory framework in line with Section 28 of the Sabah Mining Ordinance 1960.
“The State Government has also taken steps to update the SOP for collecting royalties and blasting license applications as well as introducing new rules for the approval of the Mining Operations Scheme (OMS) by the Chief Inspector of Mines.
“Next, the State Government has also taken steps to empower Sabah Mineral Management Sdn Bhd (SMM) to take over the duties of technical advisory services in mineral management in Sabah replacing the role of the Minerals and Geosciences Department.
“With the steps that have been and are being taken above, the State Government will still have absolute authority over licensing and mining activities in Sabah,” said Masidi.
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