Malaysian Chamber of Mines Wants Mineral Sector Included in ETP

By Mohd Khairi Idham Amran KUALA LUMPUR, June 4 (Bernama) -- The Malaysian Chamber of Mines is hoping the government will include the mineral sector as an entry point project (EPP) in the Economic Transformation Plan (ETP). President Mohd Ajib Anuar said there would be a huge demand for minerals and metals for the construction of mega projects under the ETP such as the MyRapid Transit which emphasised the sector's importance to the transformation plan. "There are many projects under ETP which run into billion of ringgit. So there has to be a national strategy for the procurement of these metals and minerals either from domestic sources or import," he told Bernama. He said there has to be a strategy, going forward, to ensure the security of supply and ensure that the country could lock-in the cost and therefore manage the cost. "If this is from domestic sources then there has to be an appropriate policy like tax incentives to encourage the private sector to invest in exploration, as well as, in mining to boost production in many of the metals and minerals that the country needs," he said. Mohd Ajib said that missing out on such strategy would expose the country to price volatility and it would result in Malaysia paying a high price for procurement. The chamber has also called for the improvement in the designation of mineral-rich areas which were currently outdated. Mohd Ajib said while the economic study would be done by the private sector, the government has to designate certain zones as having minerals' potential either gold, copper or any other base metals. "Before the private sector applies for the mining or exploration licence, we must know the designated areas that have potential for mineral exploration. "There has to be a comprehensive information system formulated by the government to designate areas with minerals' potential to allow the private sector to apply," he said. Last year, major minerals produced in Malaysia rose 26 per cent to RM5.45 billion (US$1.70 billion), from RM4.32 billion (US$1.35 billion) in 2010, mainly contributed by the increase in the production of iron ore, coal, gold and tin. -- BERNAMA