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Malaysia

Legislation

  • State Mineral Enactments
  • State Mineral Regulations
  • Mineral Development Act 1994
  • Environmental Quality Act 1974

Regulatory Risk Rating

Substantial
Regulatory Risk

Regulatory Corruption Risk

Moderate
Regulatory Corruption Risk

Corruption Exposure Risk

Low
Corruption Exposure Risk
Regulatory Risk Rating Factors Risk Level
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Mineral Coverage Subscribe
Right to Mine Subscribe
Criteria for Mining Rights Subscribe
Tenure Subscribe
Surface Rights Subscribe
Government Take Subscribe
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The model State Mineral Enactment which the majority of Malaysian States have adopted for the purposes of regulating their mining industry is a well drafted and reasonable encouraging piece of legislation. It provides clear terms and processes on licensing and does not create a particularly onerous regime for companies to operate within. It avoids many of the common pitfalls of modern mining legislation and creates a relatively good balance between the competing priorities of environmental protection, industry growth and the needs of landowners – providing tenement holders with unlimited opportunities to get the required plans and programmes approved without the potential consequence of loss of rights. Were it not for the fact that it reserves unto the State Authorities total discretion over the granting of tenements, the legal risk would be far lower and Malaysia would have, by some way, one of the better regimes in South East Asia.

Contents

Legislation

  • State Mineral Enactments
  • State Mineral Regulations
  • Mineral Development Act 1994
  • Environmental Quality Act 1974

Regulatory Risk Rating

Substantial
Regulatory Risk

Regulatory Corruption Risk

Moderate
Regulatory Corruption Risk

Corruption Exposure Risk

Low
Corruption Exposure Risk
Regulatory Risk Rating Factors Risk Level
Note to Reader Subscribe
First Come / First Serve Subscribe
Application Criteria Subscribe
Duration Subscribe
Right to Renew Subscribe
Competing Licences Subscribe
Mineral Coverage Subscribe
Right to Mine Subscribe
Criteria for Mining Rights Subscribe
Tenure Subscribe
Surface Rights Subscribe
Government Take Subscribe
Transfer Rights Subscribe
Change of Control Subscribe
EIA Process Subscribe
Power to Revoke Subscribe
Age of Legislation Subscribe
Other Factors Subscribe

Overview

Malaysia was once the world’s largest tin producer and its mining industry suffered considerably after the price of tin crashed in the mid 1980s, forcing the closure of many of the country’s tin mines. That said, Malaysia does have significant mineral resources beyond tin, though the industry today remains relatively small comparative to its supposed potential. A variety of metallic, non-metallic and energy minerals may be found in the country, including copper, gold, bauxite, ilmenite, iron, feldspar, limestone, kaolin, tin, mica, zircon and silica sand. It is also the second-largest oil and natural gas producer in South East Asia. According to Malaysia’s National Mining Policy, the government is focused on ensuring that the mining industry is globally competitive and a strong contributor to the country’s economic development. In this regard, Malaysia has set out various objectives, including the sustainable development and optimum utilisation of its mineral resources, the promotion of environmental stewardship and the enhancement and advancement of the sector on a global scale.

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