SMALL-SCALE MINING

SMALL-SCALE MINING IN
IN
MALAYSIA &
MALAYSIA & SOME
SOME
TECHNOLOGICAL ISSUES
TECHNOLOGICAL ISSUES

27 November 2006
CASM-Asia
BANDUNG, INDONESIA
 MAP OF MALAYSIA

KOTA
BHARU

ALOR SETAR KUALA

TERENGGANU
KOTA
KINABALU
IPOH ( MRC, T.SERVICES)
PERAK

KUANTAN

KUALA LUMPUR-
(Head Quarters)
SELANGOR SEREMBAN

JOHOR BAHRU
KUCHING
 STATISTICS
• Malaysia was the world largest
producer of tin until 1985
• Mining was one of the pillars of the
country’s economy
• Most of the small-mines were gravel
pump and open pit mines
• Apart from tin, other minerals such
as gold, iron ore, bauxite, coal and
kaolin are also mined
 STATISTICS
N U M B E R O F T IN M IN E S B Y M IN IN G M E T H O D

1000
900
800
700
600
N u m b e r o f M in e s

500
400
300
200
100
0
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
Year

G r a v e l P u m p & O p e n P it D r e d g in g O th e r s
¾Numerous laws enacted even before the independence.
- Mining Enactment (regulate safety & operation)
- Mineral Ores and Gold buyers ( to curb unlawful
dealings)
- Tin Control Ordinance ( to curb smuggling during
the tin control period)
¾Able to provide a stable environment to operate.
¾Prevent illegal activities
 DEFINITION OF SMALL SCALE MINING UNDER
MALAYSIAN MINERAL LAWS

Small scale mining operation means:

‰ Annual throughput of less than 3.5 million m3 per year of

minerals extraction from primary alluvial deposits.
‰ Annual combined run-of-mine ore, waste & overburden of
less than 100,000 tonnes per year for underground mining
‰ Annual combined run-of-mine ore, waste & overburden of
less than 300,000 tonnes per year for primary non-alluvial
deposits
‰ capital & infrastructure investment less than RM150
million.
‰ employed less than 250 employees
 MINERAL TENEMENT
MINERAL TENEMENT (SMALL)

™ FOSSICKING LICENCE
- NO UTILISATION FOR COMMERCIAL OR INDUSTRIAL PURPOSE
- NO USE OF POWER OPERATED EQUIPMENT TO WIN MINERALS
- NOT TRANSFERABLE
™ DULANG LICENCE
- PERSONAL TO HOLDER
- SHALL PAY ROYALTIES
- NO USE OF POWER OPERATED EQUIPMENT TO WIN MINERALS
™ INDIVIDUAL MINING LICENCE
- SHALL PAY ROYALTIES
- PERSONAL TO HOLDER
- WITHIN DESIGNATED AREA
CONTROL OF MINING OPERATION

¾ Issuance of mining leases by authority

¾ Licence or letter of authority
¾ Licence for the use of water
¾ Authority to dump
¾ Approval of mining scheme
- area to be mined
- dumping area
- effluent discharge
- dry dumping
 Standard Conditions
1. That mining operations shall be carried out by a
closed circuit water system whereby the
discharge of mine effluent into the drainage
system is strictly prohibited; the tailings and
effluent derived from mining operations shall be
wholly confined within the dumping areas.
2. That no mining shall be carried out within …..
metres from the centre of the ….. Road without
a written approval from the Inspector of Mines.
3. That no mining or dumping shall be carried out
within …. metres from all the adjacent land, lots
no. …… without the written permission from the
Inspector of Mines
TYPICAL MINING SCHEME (not to scale) N

Dry dumping

Working area MC 0001

LOT 002

Kongsi Water hole

GP
W.P
Stockpile
Palong

Tailing area

W.P W.P
Tailing area

Spillway

Sungai Burung
 Gravel Pump
Gravel Pump Mining
Mining

Advantages:
• Low capital cost
• Effective in alluvial deposit
• Equipments manufactured locally
• Able to mine irregular bedrocks
 Issues Affecting Miners
• short mining leases
• mining on worked out area (@ much
greater depth) – stability problems
• lack of dumping areas
• higher cost if use monitor to mine (also
safety problem)
• higher fuel cost
• higher cost of spare parts e.g. pumps,
liners, pipes etc.
 Issues Affecting Miners
• water shortage during dry season
• recovery of tin ore ~ 70% Sn
• discharge of waste water into main
streams
• stability of mine face esp. when work
upto the boundary
• high cost of dewatering minehole if
heavy rain
• poor ore recovery – tin ore end up in
the tailings
 Panning
‰ licences only issued to women
‰ target poors from rural
‰ supplement income
‰ renewed annually
‰ renewal fee of RM5.00
‰ sale of ore not more than 15kg/month
‰ panning at specified area in the licence
 Issues
™ pollution of stream & river water
™ panning outside specified area
™ encroachment of private properties
™ abuses of licences
™ illegal involvement of men in activities
™ shortage of new areas
™ shortchanged by tin ore dealers
21-Nov-06 Mendulang 8
21-Nov-06 Palong 6
21-Nov-06 Mencuci palong 7
RUSILA, TERENGGANU
THANK YOU