Malaysia

Shafie tells Sabah govt to come clean on S’pore mining firm concessions

If no companies in state capable of the work, why not award to M’sian outfit, asks opposition leader

Updated 3 years ago · Published on 24 May 2023 1:15PM

Shafie tells Sabah govt to come clean on S’pore mining firm concessions
Datuk Seri Mohd Shafie Apdal says the state government needs to learn lessons from countries like Sri Lanka and some African nations that have fallen into financial crisis after failing to settle foreign debts. – AZIM RAHMAN/The Vibes file pic, May 24, 2023

by Jason Santos

KOTA KINABALU – A Singapore-based mining company came into the spotlight in the Sabah assembly when opposition leader Datuk Seri Mohd Shafie Apdal claimed it was among 20 unknown mining licences awarded by the state government.

The Senallang assemblyman cited a report by The Edge Singapore revealing that Singaporean firm Fortress Minerals had received two new prospecting licences in Sabah.

Shafie said that under the terms of the licences, the Lands and Survey Department has given Fortress Minerals until December 2024 to undertake the prospecting activities.

The first concession area, Telupid, Sabah, covers 40 sq km and is known to contain copper. The second concession area, Tongod, Sabah, covers 400 sq km and is known to contain nickel, copper and cobalt.

“I was made to understand that the state has issued over 20 mining licences. Is this true or not?

“Have we not learnt lessons from the Mamut Copper Mine? What has the (Japanese) mining company taken from us? Copper? Not just copper, but also other minerals like gold.

“I need to ask the government whether this is true. What is the basis (of the Sabah government) to issue such concessionaires to the Singaporean company. If there are no Sabah companies capable of undertaking such work, why not award it to any Malaysian companies?” asked Shafie during his policy debate speech.

Shafie said the state government needs to learn lessons from countries like Sri Lanka and some African nations that have fallen into financial crisis after failing to settle foreign debts.

He recalled facing a similar situation during his tenure as Sabah chief minister in the Warisan-led state government when a company approached to invest in the state to mine silica.

“I told them I can give (the licence) to you. But they want to have control of a bridge in Sepanggar. I asked them how much this bridge will cost, and they said around RM100 million.

“It’s okay, I will give you the money. But they said the Malaysian contractors are slow. I told them, you do it, but let the state have control over this bridge,” said Shafie, pointing out this was the term imposed by his government on the firm.

Shafie did not name the company but was clearly referring to the China company Kibing Kudat, which is in the midst of setting up its mining operations in Kudat, the northern part of the state.

He also cited the corruption case where five men and a woman allegedly made false declarations on the sale of gold that was mined by two firms through operations in Bukit Mantri in Tawau.

Shafie said the state must reveal what were the terms of their investments and make sure the companies declared all their mining exploits. – The Vibes, May 24, 2023

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