Report highlights weaknesses in Terengganu’s mining sector

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Source: The Star Online

Room for change: The 2014 Auditor-General’s Report (Third Series) has several recommendations to improve Terengganu’s mining industry.

Room for change: The 2014 Auditor-General’s Report (Third Series) has several recommendations to improve Terengganu’s mining industry.

KUALA TERENGGANU: Tereng­ganu’s mining sector has weak monitoring and ineffective enforcement, leading to procedures and regulations being violated.

This was stated in the 2014 Auditor-General’s Report (Third Series), which was released on Monday.

It pointed out several weaknesses in the state’s booming mining sector.

Despite showing growth with an increase in new mines and mineral extraction, the report noted that the issuance for mining licences was slow.

Furthermore, the application process was too time-consuming.

Permanent forest reserves approved for mining leases were not gazetted out of the permanent forest reserve area.

The report also identified weaknesses and a decline in royalty revenue at the Hulu Terengganu Land Office.

Royalty revenue for rock material was under-collected as the collection was done based on old rates.

The Auditor-General’s Office recommended that the Land and Mines Office ensure the mining licence application process be completed within eight months.

It also recommended that it review the policies and regulations of bauxite mining and the volume of lorries used in transferring the rock minerals while monitoring and enforcement activities be carried out on a regular basis.