Efforts Towards Sustainable Mineral Development In Malaysia By En, Shahar Etfendi bin Abdullah Azizi, Deputy Director (Mines & Quarry Services) Technical Services Division, Department of Minerals and Geoscience Malaysia In this paper, the author outlines briefly the efforts taken by Malaysia since the early 19" century, when tin was first mined, to address environmental problems. He states that although minerals can be a potential source of wealth in most developing countries, minerals can also be a major source of degradation to the physical and social environment unless properly managed. As such, the Malaysian Government through the Mineral Development Policy and Planning (MDPP) Project in 1991, came up with the formulation of the National Mineral Policy which inter alia, includes measures to be taken to sustain mineral development in the country. This paper includes a brief description of the regulatory and institutional framework to achieve those measures which also address environmental protection, conservation and rehabilitation. Also mentioned in this paper is the concept of rezoning of ex-mining land towards best use. inerals are non-renewable resources essential (@ the needs of national development and mankind, For most products, there is no substitute for minerals. Mineral development projects, are high risk, capital and technology intensive ventures with long, gestation periods. Minerals can only be developed after they have been located by exploration and also after rights to mine them have been obtained. Minerals won front the ground can be a potential source of wealth Pt in most developing countries and this is (rue in the case of Malaysia where for more than a century, tin was one of the commodities that constituted the pillars of the Malaysian economy until it collapsed in the anid 1980s, However, in addition to generating wealth, mining can also be a major source of degradation 1o the physical and social environment unless it is properly managed. Today, however, technologies and management tools are available 10 minimise as well as to counter the THE INGEMIEUR 7 negative impact of mining, and society expects the mineral resource industry to apply high standards of owironmental management to all projects. Minimising the damage brought upon by mining operations depends quite a Jot-on sound environmental practices. in a framework of balanced mineral and environmental legislation Thus, in the late 1980s when the Malaysian Government was embarking on the Mineral Development Policy and Planning,u u | fy a S u 5 5 fy (MDPP} Project which aims to attract Inore investment anid to revitalise the mineral sector, one of the subject matter included in the package was the provision of suitable mechanisms for the adoption of a appropriate approach towards environmental protection. conservation and rehabilitation. The Project was completed in 1991 culminating in the formulation of the National Mineral Policy. Early Initiatives Environmental awareness related to mining in Malaysia has been realized since the 19" century whe the earliest mining legislations we introduced tw the then two tin-rieh states of Perak and Selangor in 187 and 1891 respectively. Mn those early days, the major concer regarding environmental protection was based mainly on the conflict that arose between the interest of mining and the interest of agriculture and forestry. The first Mining Enaerment of the Federated Malay State (E.M.S.} ‘was passed in 1911 and followed by many amendments were macle. All other State Enactments are sai 10 be similar with or modelled after the Mining Enacimient Cap. 147. ‘The earlier State Mineral Enactments were more concerned with the contro} of the discharge of suspended solids into streams and watercourses, and the discharge of chemicals deleterious to animal and plant life, However, these enactments do not have any specific sections dealing with the rehabilitation of mining land, What was practiced thea in as far as rehabilitation was concemed was the concept of “filling and ferelling agreement" or “stablisarion agecement™ . To some extent, these measures have not been cesstul duc to lack of proper planning and the absence of any policy making body to decide or plan for the end use after mining is completed. In many cases in the past land that was worked on was again re-mined so that any compliance with previous filling and leveling requirements would be meaningless. This has led to many Inne holes Fefi unfilled, As a result of historical and on~ going minting, there has been 10 some extent, some environmental degradation in many areas in Malaysia especially around the tin-rieh areas in Ahe states of Perak and Selangor. ft cannot be denied that, mining effect chaniges in the natural environment 10 varying degrees depending on the location of the mine, the scale of the inning, operation, method of mining, operation and the — mineral characterisation. Even so, the awareness about mining and its impact on the environment has aniy evolved considerably over the Tast few decades, Until the 1970s, while mineral deposits were being developed, environmental issues were not a major consideration for cither the industry, Goverment or community at late. Environment degradation was accepted a price that had 1 be paid for the THE INGENIEUS 8 production of essential mineral commodities. This worldwide phenomenon of environmental degradation was not restricted only lo the mining industry but also common to other industries as well. Notwithstanding the above, many of Malaysia's lange mining companie such as Malaysia Mining Corporation, (MMC], Mamut Copper Mining Sdn. Bhd, and Johore Mining and Stevedoring Sdn, Bhd., have successlully undertaken activities and programmes in the protection and conservation of the environment. The National Mineral Policy The Malaysian mining industry is principally guided by the National Mineral Policy which provides the founskation 10 develop an effectiv efficient and compesisive minerals industry in Malaysia, an attractive Investment climate and an appropriate regulatory environment for the mineral sector. The thrust of the Policy is to expand and diversify the mineral secior through © Optimum beneficial exploration and development of mineral ¢ The maximisation of the use of research and development (R&D); and 4 Shifiing the emphasis from mining of alluvial tin to that of other minerals I is noteworthy ty mention here that the Poliey places strong emphasis on the need for the protection of the eavirowment and support for sustainable development af mineral resources. Essentially. there are eight regulatory objectives laid down in the Policy, namely: {To contribute to National and Slate development by promoting diversification and expansion of the mineral industry: (ii) To provide an attractive, efficient and stable mineral sector regulatory framework: (iii) To encourage exploration and a heneficial expansion of the mineral industry’{iv) To provide a stable and conducive fiscal system; (¥) To accord the mineral industry a high land use priority in areas open for exploration; (vi) To enhaace the development of domestic expertise in mineral resource development through research, education and training activities (vil) To provide environmental protection and management of social impact; and (viii) To provide timely and accurate regulatory. scientific and technical information. Regulatory Framework Malaysia follows @ Federal system of Government with divided respoasibilities between Federal and State Governments in accordance with the Federal Constitution. With regard to the mineral sector, the Federal List in the Constitution states the Following Federal areas of responsibility: # development of — mineral @ mines, mining, minerals and mineral ores: purchase, sale, import and export ‘of minerals and mineral ores; and ‘¢ regulation of labour and safety in Under the Federal Constitution, land ners are a State responsibility as stipulated under the Stare List through which the States are vested with the authority to grant licences for prospecting and exploration, mining leases and certificates. AS for matters tinder joint~ responsibility stipulated under the Concurrent List, these include matters pertaining to environmental protection as well as rehabilitation oof mining land Ir is to be noted here that at the Federal level, environmental control comes under the jurisdiction of the Department of Environment as stipulated in the Environmental Quality Act, 1974. However, for the States of Sabah and Sarawak, both in the istand of Borneo, have their ‘own environmental laves which is the Conservation of Environment Enactment 1996 and Natural Resource and — Environment Ordinance 1958 (Cap 84] respectively. In the above environmental laws, mining and quarrying are listed as preseribed activities which require them to be subjected to an EIA (Environmental Impact Assessment] approval. While the Environmental Quality Act acts as the umbrella act relared 10 environmental matters at the macro level, the respective mining laws and their related guidelines are the actual legal instruments which spell out the details of the operations that have to be observed in relation to mining, AL the Federal level. the law which provides for the inspection and regulation of the exploration and mining of minerals and mineral ores, and for other matters connected THE INGERIEUR 9 therewith is the — Mineral Development Act 1994. This Act covers the stautory and legal requirements that have 10 be observed by the mining operators before, during and after the ‘commencement of mining operations in accordance with good and sale practices as may be preseribed under the Act and any other written law relating to environment. Under the Act, an operational mining scheme has 10 be approved before mining operation can commence and operation hay to be carried out in accordance with the scheme, The Act also stipulates that abandoned mines and waste retention areas shall be made safe as may be prescribed. The Act falls under the ambit of the Department of Minerals and Geoscience which is the enforcement agency. At the State level, the law pertaining to the issuance of exploration and prospecting licences and mining leases is the respective State Mineral Enactment which has been harmonised to bring some semiblanice of uniformity between all the States. The Enactment is enforced by the respective State Director of Lands and Mines or Director of Lands and Survey (as in the case of Sabah and Sarawak). One of the significant facets of the Enactment is the rehabilitation requirement whereby land subjected to a_mineral title shall be rehabilitated to a state which will allow future economic use or timely reversion to a salt and, whenever realistically and economically possible, aesthetically natural-like condition. This mechanism is made possible through the establishment of rehabilitation funds for the purpose of rehabilitation of mining lands under two catagories depending on the scale of the mining operation, namely:- (i) Mine Rehabilitation Fund Int this ease, the lessee of the land which authorises large seale operation would firsi submit a mine rehabilitation plan which indicates amongst others, an estimated total cost bf rehabilitation for the approval by the State Mineral reidES PI a r . q 8 g Resources Committee (SMR) Once approved a Mine Rehabilitation Fund would be established specifically for that particular sine whereby the said fessee would then be required to pay annual payments 10 the Fund based on the estimaied total cost of rehabilitation over a stipulated period of the lease tenure. This Fund is administered by the SMC. (ii) Common Rehabilitation Fund This Fund is established collectively for those mines that falling under the category of small scale operations whereby each respective lessee contriiutes an annual fee at the 16 OF 14 of tie gross sales value of all minerals won during a calendar year from the mining land that is subject to the lease, or a preseribed annual whichever is greater, As in the Mine Rehabilitation Fund, this Fund is also administered by the SMRC Another main feature of the State Mineral Enactment is the zoniag of areas into four main categories, namely: «Areas closed for mining This category would include areas gazetted as National Park, conservation areas aid permanent Jiorest reserves, Also included are geological heritage sites, examples Of which had been zoned are the Cambrian Park in Perak, Klang Gate in Selangor and Hot Springs inn Kelaman, ‘¢ Areas for competitive bid © Areas reserved for minerals = Areas under this category would include those idensfied as having — mineral — deposits underneath which might have potensiat in future, Once reserved as such, oily certain specified activities are allowed on the lad whieh would not sterilise the minerals if is open up for msining in future. © Areas open up for individual mining licence. Institutional Framework For the suecessfal implementation of the National Mineral Policy, whi include the co-priination oF policy decisions and streamlining of activities, mew institutional Framework ix also established, namely: (i) National Mineral Couneit The National Mineral Policy provides for the setting up of a National Mineral Couneil whieh is chaired by the Deputy Prime Minister. The membership of HE MOEN FUR 10 i) this august Council is made up of all the Menteri Besar and Chicf Ministers ofthe respective States and some Federal Ministers from the related ministries and the Federal Attorney General. This Counc deliberates on issues affecting the interest of the Federal and State Governments in respect ol mutual benefits 10 be detived from the development of the mineral sector. This Council also periodically reviews the current Policy so that it is updated to keep in consonance with current and new developments taking place in ‘ihe regional and international scenario. With this periodical review, the National Mineral Policy would be in a better position to cater to the needs of the Government and vestors, State Mineral Committee ‘The State Mineral Enaciments (or Ordinances as the ease may be} provide forthe establishment of a State Mineral Resources Committee which is chaired by a Chairman appointed by the respective State Authority. The composition of the Commins varies from State to State but generally, include the Legal Advisor, Lands and Mines Director, Stare Economic Planning Unit Director, Forestry Director and representatives of the Director-General of Minerals and Geoscience and Director-General of the Department of Environment. Under the said enactment, this Commitice is given certain responsibilities which, inter alia, include vetting and recommending applications for Resources prospecting licences, exploration licences, proprietary mining licences and mining leases to the State Authority administering the Common Rehabilitation Fue! and Mine Rehabilitation Fund; and appraving the mine feasibility study and rehabilitation plan,Rezoning Of Ex-mining Land Towards Best Use In the mid 1980s the world tin industry collapsed and consequently many tin mining operators had to lose their operations leaving behind ubaridoned mines and disused ponds. The effects of tin mining include widespread degradation of the environment from its legacy of retention ponds, mine spoils and sand piles, and created eyesores 10 the public, This is inevicable in Peniasufar Malaysia where the adverse effeets of mining tend 10 be Visible as the main din mining areas ane located within the vicinity of urban centers ~ indeed the cities and towns were Founded! on prosperity of tin mining Despite the notion that rehabilitation of ex-mining lan has several constraints for development, the potential of this land to be developed is enormous. Within the context of sustainable development, the alternative usage of ex-mining lands through rehabilitation exemplifies the benefits of adding ecological, economic and social value to the land, Theowgh the effort and commitment shown by the States in their land-use planning, many of the Tormer ex-mining lands have been put into proper economic and social tse such as: ‘Housing and settlement programmes ‘@ Industria? estate development @ Agriculture, aquaculture and animal husbandry Tourism and recreation Higher learning institutions, Overall, it is estimated thar the total area of former mining land in the whole of Malaysia is aboue 127,550 hectares where around 60% (84,950 hectares} has been rehabilitated, Research has also been carried out by several Government agencies such as Malaysian Agricultural Research and Development Institute (Mardi), Forest Research Institue of Malaysia {Frim) and Minerals Research Centre {of the Department or Minerals and Geoscience} on the rehabilitation of ex-mining lands. Some of the findings include the following: ‘# Former mining land may be used for agricultural purpose whereby ‘a mixture of palm oil mill extract and empty fruit branch act as organic matter on the land @ Certain species of forest plants such as acacia mangium and acacia auriculiformis can be grown on former mining tands ¢ Old aining ponds may be used to grow vegetables fit for human consumption Conclusion In developing the mineral sector, the Malaysian Government ty mindful of the need 10 protect the environment and 10 ensure continuous quality of life for future generations, The mineral industry will vital continue to become a contributor to Malaysia's development. With specific reference to the upstream end of the industry, optimal aranagement of its, activities can be effected through the adgption and implementation of the principles of the National Mineral Policy in agreement with the attendant regulatory instruments, namely the Mineral Development Act 1994 and the respective State Mineral Enactments, together with other related Laws. In keeping with the principles of sustainable development, the requirement for the restoration and) TRE INGENIEUR 11 or rehabilitation of land disturbed hy mizing, as spelt out in the State Mineral Enactment, will feacure prominently where economic, social and ecological values can be added to such areas, > REFERENCES (1) Shahar Effendi Abdullah Azizi (1993) A Revie of the Environmental Recovery of Mining Impacts in Molaysia ~ Paper presented during the International ‘Symposium on Environmental Recovery of Mining Impact, Pocos de Caldas, Minas Gerais, Brazil, November 1993, (2) Shahar Effendi. AA. and Chin LB, (1985) Advances in the Quality of the Malaysian — Environment: Mining Industry - paper presented at the Seminar on ‘Advances in the Quality of the Malaysian Environment, KL. (1985) (3) Shahar Effendi AA. and Wan Mazlan W.Nt (1992) The Proposed Mineral Investment Condition in ‘Malaysia ~ paper presented during the Expert Group Meeting on Organization of Mining Codes and Legisiation in the ESCAP Region, Bangkok , March 1992 (4). Cho, LH. , Mustapha M. L, and ‘Mohd Zaim A. W (2005) Rehabilitation of Ex-Micing Lands: Mowing Towards Sustainobitity - paper presented at the Intemational Conference on Achieving Innovation and Best Practices in Urban Management, Ipoh, March 2005 (5) Chu, LLH(2005) Sustainable Development of Mineral Resources ~ Relevance to the National Minerat Potiey, 2005 cover feature