Old Copper Mine poses a Threat


by Gursharan Singh

The Mamut Copper Mine was leased to a company for thirty years to mine copper. The mining operations ceased in 1999 and later in 2003 it was returned back to the Sabah State Government. The reason for ceasing operations prior to the expiry of the concession period may be due to the exhaustion of copper or continued mining may not have been economically profitable. The company had then provided profits in millions that benefited the company owners.

I remember that environmentalists and other experts had regularly voiced their concerns in the past on the damage caused to the environment and its ill effects on the health of the people. I personally seen the pollution during my visit to KK and Mount Kinabalu in the mid eighties when I visited the State on audit of construction projects duties.

It is apparent that the State and Federal Government Authorities were aware of the damage being caused. However it is not possible to ascertain whether the relevant authorities monitored the operations to ensure that necessary measures were undertaken by the mining company to rectify the damage or taken any other remedial measures to prevent future environmental damage.

The possible millions in profits arising from the mining operations were enjoyed by the owners of the mine. In the process the ‘mining operations left behind a trail of pollutants that are unfriendly to nature and the health of people living at the foothills of Mount Kinabalu in Sabah’.

The company has long left Sabah to enjoy their millions. It has left the cost of remedial and cleanup measures to be borne by the taxpayers. The Federal Government has allocated RM13.0m but this is probably the tip of the iceberg as the total cost may ultimately exceed the benefits derived by the State in the form of taxes and employment opportunities.

It would be appropriate for the State/Federal authorities to study the whole case to ascertain the costs to cleanup the damage including indirect losses from missed opportunities such as from tourism and match them with the benefits. It would be interesting to know the overall position as it is my perception that the country will end up with substantially higher losses.

The Federal/State Attorney Generals should look into the terms of the lease and see whether the costs of clean up can be claimed back from the company. IF such a provision is not there it may be appropriate to include such a provision in future leases. Lessons can be learnt from the US where Government has imposed substantial fines on the responsible mining companies in addition to requiring these companies to bear the costs of cleanup operations.

This is another case where the profits are enjoyed by the selected few and the losses are to be borne by the many.

  1. #1 by moong cha cha II on Saturday, 7 July 2007 - 3:08 pm

    it OK.
    it consistent with the pattern of 40 years or so, under BN

    we voted the gomen.
    they are our boss, we just obey.

    taxpayers (aka rakyat) always bear the burden.

    example : toll companies can raise toll, it is their right, says the gomen. Ordinary rakyat want to raise prices cannot, it is not our right says the gomen.

  2. #2 by shortie kiasu on Saturday, 7 July 2007 - 4:09 pm

    The mine owner, Mega First Bhd, owned by Lim Keng Kay (KK Lim) & family, should owned up to their legal & societal responsibilities, to make good and safe the abandoned mines, and tailings areas; to rehabilitate the areas to prevent further leaching of heavy metals into the ground water system and to prevent slope collapse and landslides on steep slopes.

    Mr. YB Lim Keng Yaik was the Honourable Minster (Primary Industries) in charge at the time of abandonment of the mines. He should show exemplary leadership by ensuring Mega First Bhd, owned by his elder brother and Lim family, carry out the rehabilitation works immediately and continuously, until the area is considered safe and sound.

    They, the mine owner, had made millions from the mine, from the sales of ores of copper, gold, sliver & zinc extracted therefrom, when the metal prices were at their peaks. They, the mine owner, took over the mine cheaply from the Japanese concerns, which first started the mine there.

    In addition, Department of Mineral & Geoscience (formerly Department of Mines & Department of Geological Survey, which merged under the Minister Lim Keng Yaik) should wake up from the slumber and act, act they should and fast; before a disaster strike and take away dear lives, and costs dearly the taxpayers money to make good later.

  3. #3 by undergrad2 on Saturday, 7 July 2007 - 7:14 pm

    “They, the mine owner, had made millions from the mine, from the sales of ores of copper, gold, sliver & zinc extracted therefrom, when the metal prices were at their peaks. They, the mine owner, took over the mine cheaply from the Japanese concerns, which first started the mine there.” Shortie Kiasu

    The Japanese were mining there for many years for copper it seemed. The truth is they were mining for gold which they say is negligible. If it was negligible why were they shipped to Japan for further processing? Was it because the Japanese did not want us to know?

    The damage mining has caused to the environment is massive. This major Japanese company should be made to compensate the state government for the clean-up.

  4. #4 by wtf2 on Saturday, 7 July 2007 - 7:59 pm

    Who is the minister in charge of the NEA? Hammer away at his office !

  5. #5 by Winston on Saturday, 7 July 2007 - 8:56 pm

    Well, the BN will definitely not be bothered by such things.
    You, as the voter, put them in power.
    So, you, as the voter, must put them out of power.
    In the next General Election.

  6. #6 by Jonny on Saturday, 7 July 2007 - 10:08 pm

    Winston:
    “So, you, as the voter, must put them out of power.
    In the next General Election.”

    No way. The people we have voted consistently into power have found ways to buy cheaper votes and also create ‘cheaper’ voters/new Malaysians.

    Dream on, to bring them out.

    It is a numbers game end of the day with all the delineation of constituencies, created population in a new development area, etc.

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