Nik Nazmi: No mining deals between Putrajaya and states

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

Gerik-PN MP Fathul Huzir Ayob had raised the question in Parliament on whether Putrajaya had agreements with state governments to collaborate on mineral extraction, akin to Petronas contracts.

Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad said in a written parliamentary reply that Putrajaya’s role was limited to regulating three areas, namely mining activities, processing and export.

His ministry is, however, always prepared to cooperate and advise state governments in developing the mining industry, according to Nik Nazmi.

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

For the record, Petronas was required to pay states and Putrajaya 5% “royalty” respectively on revenue.

“The collection of royalties and mineral tenement licence was within the authority of state governments only,” Malaysiakini reported the Setiawangsa MP as saying.

He also pointed out that the amount of royalties collected from minerals, including tin, gold and kaolin was RM421 mil in 2021, according to the Department of Minerals and Geoscience.

Moreover, except for tin which has a cess charge of 40 sen per kilo, Putrajaya imposes no tariffs on mineral exports.

In 2021, RM1.7 mil 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. – June 9, 2023


Main photo credit: Malaysiakini

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