No mining deals between Putrajaya and states

 

PARLIAMENT | There are no specific deals between the federal government, state governments and private companies involving the mining and minerals industry.

Putrajaya's role was limited to regulating three areas - mining activities, processing and export, said Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad.

"However, the ministry is always prepared to cooperate and advise state governments in developing the mining industry," said Nik Nazmi.

Nik Nazmi (above) said this in his written reply to Fathul Huzir Ayob (PN-Gerik) who asked whether Putrajaya had agreements with state governments to cooperate on mineral extraction, similar to contracts involving Petronas.

Specifically, Fathul Huzir referred to materials such as tin, gold, kaolin and lanthanide (rare earth).

Petronas was obliged to pay states and Putrajaya five percent "royalty" respectively on revenue.

According to Nik Nazmi, the collection of royalties and mineral tenement licence was within the authority of state governments only.

"According to the Department of Minerals and Geoscience, the amount of royalties collected from minerals, including tin, gold and kaolin, was RM421 million in 2021," he said.

Putrajaya does not impose any duties for the exports of minerals, except for tin, where a cess charge of 40 sen per kilo was levied.

In 2021, RM1.7 million was collected from tin exports, said Nik Nazmi.

Fathul Huzir's constituency hosts a tin mine in Pengkalan Hulu and a rare-earth mine in Kenering. - Mkini