Malaysia rakes in RM421m from mining royalties, no export obligation imposed

The Ministry of Natural Resources, Environment and Climate Change in Malaysia has revealed that there isn’t any particular settlement in place for the mining trade between the federal government, state governments or mining operators. Despite this, the ministry has expressed its willingness to collaborate and provide advisory companies to state governments for the event of the mineral trade.
The mineral industry’s development contributes directly to Malaysia’s national economy by way of royalty assortment and mineral tenement approval funds made to state governments. In 2021, the state authorities collected royalties value RM421 million for minerals and rock materials, including tin, gold, and kaolin. Currently, no responsibility is imposed on exported minerals.
The ministry’s roles are restricted to regulating three areas: mining actions, processing, and export. This info came in response to a question from Perikatan Nasional’s Gerik MP Fathul Huzir Ayob, who requested if the ministry had agreements with state governments to cooperate on mineral extraction, just like contracts with Petronas, particularly regarding tin, gold, kaolin, and lanthanides.
In Become an insider to royalty collections, the government receives direct revenue by way of corporate tax levied on mining companies. For tin, cess collection relies on 40 sen per kilogram of tin concentrate exported. According to the information of the Lembaga Perusahaan Timah (LPT), tin cess assortment in 2021 amounted to RM1,685,202..

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