Malaysia gold mine mining

Malaysia gold mine mining

Minerals contribution to the overall economy continues to be significant in terms of foreign exchange earnings, government revenue and investment

MALAYSIA’S real gross domestic product (GDP) grew by 5.9% in 2006, which represented the fourth successive year when economic growth exceeded 5%. Despite the overall growth, Malaysia’s mineral sector, including oil and gas, registered a mild contraction (0.2%) in 2006, due to lower production of crude oil, with a number of oil operations shut down for maintenance.

Export earnings from minerals have risen slowly but steadily, the share of total gross exports increasing gradually from 7.2% in 2000 to 9.7% in 2006.

The mineral sector in Malaysia is fairly labour-intensive, with some 43,000 workers directly employed in the sector in 2006. In addition, there are a large number of workers employed by contractors engaged in mining activities.

Malaysia’s non-oil and gas minerals industry is broadly categorised into three sub-sectors; metallic, non-metallic and energy minerals. The non-metallic sector continues to be the mainstay of the country’s minerals industry, providing the dominant share in overall production (registering a production value of RM1.71 billion in 2006). The production value for the metallic and energy minerals sectors was RM0.41 billion and RM0.08 billion, respectively.


Tin continues to be mined in Malaysia. It was the country’s major mineral mined prior to the 1980s, but is now mined on a much reduced scale due to the non-availability of mining land and exhaustion of reserves. Tin production in 2006 decreased 16% to 2,398t.

Imports of tin-in-concentrates in 2006 totalled 15,979t, a substantial decrease from 31,087t in 2005.

These imports were for smelting at the country’s sole tin smelter located in Butterworth, Penang. Exports of refined tin metal in 2006 totalled 19,267t.

A major by-product of alluvial tin mining in Malaysia is ilmenite. Production of ilmenite in 2006 rose to 45,649t and imports rose to 137,666t. Iron-ore output in 2006 decreased to 667,082t. Iron ore is mined at nine locations throughout Peninsular Malaysia, although most of the material is of low grade and reserves are limited. The ores were consumed mainly by the local cement, and iron and steel plants. Malaysia’s steel industry also imports iron-ore in the form of lumps and pellets for its manufacturing requirements. Imports in 2006 totalled 2.35Mt and the country exported 137,625t of iron-ore.

Gold production decreased by 18% in 2006 to 3,489kg. The metal is produced at seven locations in Peninsular Malaysia.

Bauxite production in 2006 increased substantially to 91,806t in response to strong demand and high prices. Production is from two small mines in Peninsular Malaysia but reserves at these operations are limited. However, there are potential resources of bauxite in east Malaysia. Approval to build an aluminium smelter in East Malaysia is still under consideration by the government. Malaysia imported 5,641t of bauxite in 2006 and exports amounted to 22,000t.

Exploration and prospecting for non-oil and gas minerals in Malaysia continue to be minimal and most of the limited activity is in Peninsular Malaysia, mainly for gold, tin, iron ore and kaolin.

According to Bank Negara, Malaysia’s minerals sector was expected to have expanded by 2.8% in 2007, supported mainly by higher output of crude oil and natural gas. However, Malaysia’s non-oil and gas minerals sector has not improved markedly during the past year owing to the lack of exploration and mine development activity. Meanwhile, the Department of Mineral and Geoscience has completed several mineral exploration projects both in Peninsular and east Malaysia to study the potential for various mineral resources such as gold, coal, limestone, and silica. The results are awaited.


Coal is produced at locations in east Malaysia, and Malaysia’s coal resources are estimated at some 1,724Mt, of which 274Mt are measured, 347Mt indicated and 1,102Mt inferred. Output in 2006 reached to 901,801t.

Malaysia’s demand for coal has been increasing, and may rise to 19 Mt/y by 2010. Most of the country’s requirements are met by imports from Indonesia, Australia and China. Malaysia imported 10.34 Mt in 2006, with the main consumers being the power stations and cement plants and, to a lesser extent, iron and steel plants.

The country aims to boost coal’s share of the overall energy mix from the present 18% to 30% by 2010. Malaysia’s current domestic energy mix, under its Five-Fuel Policy, comprises oil, gas, hydro power, coal and renewable energy.


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One Response to “ Malaysia gold mine mining ”

  1. Demand:Mining project Equipment | Materials: Iron ore | Customer from Zimbabwe Says:

    I have a greenfield Iron ore claims measuring 525 hectares. We would like to start mining soon. We would like to know the list and Prices of basic equipment needed to start up this Iron Ore Mining project.

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