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|18 February, 2019

Malaysia lifts bauxite mining moratorium after 3-year ban

Malaysia was once the biggest supplier of bauxite to top buyer China

Image used for illustrative purpose only. Wildcat gold miner, or garimpeiro, works at a wildcat mine, also known as garimpo, at a deforested area of Amazon rainforest near Crepurizao, in the municipality of Itaituba, Para State, Brazil, August 6, 2017.

Image used for illustrative purpose only. Wildcat gold miner, or garimpeiro, works at a wildcat mine, also known as garimpo, at a deforested area of Amazon rainforest near Crepurizao, in the municipality of Itaituba, Para State, Brazil, August 6, 2017.

REUTERS/Nacho Doce

KUALA LUMPUR- The Malaysian government said it would not extend its moratorium on bauxite mining which ends on March 31 due to strong demand for the industry, state news agency Bernama reported on Monday, quoting the water, land and natural resources minister.

Malaysia was once the biggest supplier of bauxite to top buyer China, with shipments peaking at nearly 3.5 million tonnes a month at the end of 2015. Bauxite is mainly used as an ingredient in the production of aluminium.

But unregulated mining and run-offs from unsecured stockpiles in the eastern state of Pahang contaminated water sources, turning roads, rivers and coastal waters red.

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This led to a ban on all bauxite mining activity since early 2016. 

"The moratorium will not be extended after March 31 ... I see that there is a strong demand for the bauxite industry in Pahang and the profit derived by the state is also enormous," Xavier Jayakumar said.

Jayakumar also added that while bauxite mining and export activities could be resumed, it would be done with new standard operating procedures and tighter law enforcements.

(Reporting by Emily Chow. Editing by Jane Merriman) ((emily.chow@thomsonreuters.com; +603-2333 8035; Reuters Messaging: emily.chow.thomsonreuters.com@reuters.net))

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