Malaysia’s bauxite exports to China down 93% YoY in February; total exports to rise in H1 2018

Malaysia, one of the world’s top bauxite producers, has started exporting bauxite to China since November, though the volume has shrunk considerably in February 2018. As per export-import data shared by China’s General Administration of Customs, bauxite export by Malaysia to China in February totalled 29,486 tonnes, down 93.47 per cent year on year (YoY).

Malaysia has prolonged the period of moratorium on bauxite mining in Pahang till June 30 2018 to give the government time to finalise a regulatory framework to prevent a repeat of the environmental damage.  Malaysian companies remain positive about lifting of the ban in due time that would help revive mining segment.

As per global export-import data, Malaysia is estimated to export 9 million tonnes of bauxite in the half of 2018, up from 2.6 million tonnes of bauxite in the same period previous year. In the second half of the year, the volume is projected to increase further. In H2 2018, the country is estimated to export 10 million tonnes of bauxite, up from 5.6 million tonnes in the corresponding period previous year.

Malaysia is estimated to generate revenue of US$ 1.2 million from the export of bauxite in H1 2018, from US$ 1.6 million in H1 2017.  In H2 2018, the revenue is estimated to stand at US$ 0.23 million, from US$ 1.8 million in the corresponding period previous year.

Natural Resources and Environment Minister Datuk Seri Wan Junaidi Tuanku Jaafar said that the Standard Operating Procedure (SOP) for bauxite mining activities in Pahang is expected to be completed by June 2018. He added that the SOP was prepared after considering the environmental impact assessments submitted by several third party agencies and input from the Malaysian Anti-Corruption Commission (MACC).

“The SOP will ensure that bauxite mining and export comply with the set regulations and not cause pollution,” he said.