Moratorium cost bauxite miners RM800m; stockpiles clearing gains momentum

The bauxite mining moratorium that started in Pahang near Kuantan Port area on January 15 has had a rather serious effect on the operators' balancesheets. The Pahang Mineral Operators Association (PPMNP) claims, they have have suffered a loss of RM800 million since the government imposed the moratorium.

The impact of the bauxite moratorium has been expanisve enough to cover sectors beyond mining. PPMNP vice-president Yap Soon Huat claimed that the moratorium had caused the industry players including the services sector, transportation operators, restaurants and workshops missing on the economic spillover of about RM2 billion per month.

“PPMNP wants to emphasise that this moratorium has not only led to the drop in state revenue and corporate taxes from mining companies to the federal government, but also affecting the state’s business and the economy, especially in Kuantan.

“They have to reduce staff to ensure the stability of the company which led to unemployment and many people have to find jobs elsewhere during the current economic uncertainty,” he said at a recent press meet.

Yap urged Pahang government to immediately revoke the moratorium to allow the economic activities to resume. He also claimed that the pollution in the mining area was caused by illegal miners as the PPMNP members had always abided by the mining rules.

He added that the association had submitted a proposed SOP to the Natural Resources and Environment Ministry, Pahang government and Mentri Besar Datuk Seri Adnan Yaakob on February 19.

Asked on the government’s proposal to only allow the use of covered lorries to transport the bauxite, Yap said it would only increase the operating costs that must be borne by the mining operators.

KPC: Bauxite stockpiles to be cleared soon

Meanwhile, a source from Kuantan Port Consortium Sdn Bhd (KPC) admitted that there were still heaps of bauxite there, as the port was bound by several protocols such as the permit and transportation process.

“We can only make a booking for barges, which will also take time to sail here, after getting the permit from the authority,” he said.

However, he remained optimistic the clearing of the remaining bauxite stockpiles at the port could be done before the three-month moratorium period ended on April 15.