By Khairie Hisyam
As controversy rages on over the effects of bauxite mining in Pahang, the state crown princess’ apparent support for the anti-bauxite lobby may cast an awkward situation as her husband has indirect interest in bauxite mining activities.
On Jan 4, 2016, Tuanku Azizah Aminah Maimunah Iskandar reportedly shared on her Instagram account multiple newspaper clippings on the issue while urging the public to continue the “fight”. “I have been frothing in the mouth speaking about this. I too have a home in Pantai Balok and the beach in front of our home is now red.”
Third daughter of the late Sultan Iskandar of Johor, Tuanku Azizah Aminah is the first wife of Pahang crown prince Tengku Abdullah ibni Sultan Ahmad Shah. They wed in 1986 and have six biological children, although one has passed away.
In turn Tengku Abdullah holds direct and indirect interest totalling 36% in Bursa Malaysia-listed Tanah Makmur Bhd, according to a regulatory filing on Dec 11, 2015. Tanah Makmur is a plantation-based company that also derives some income from bauxite-related business activities that commenced in April 2014.
For the third quarter ended Sept 30, 2015 (3Q15), Tanah Makmur posted RM99.9 million in quarterly revenue and RM25 million in pre-tax profit. Of these, RM20.9 million in turnover and RM8.2 million in pre-tax profit came from bauxite mining operations on land held by its property development division.
For the 2014 financial year (FY14), Tanah Makmur saw a 60% revenue increase year-on-year to RM386 million, of which RM86 million came from bauxite mining.
According to Tanah Makmur’s 2014 annual report, total tonnage of bauxite deposits on its land is estimated at 1.4 million tonnes. Since April 2014 it has exported 684,389 metric tonnes of washed bauxite up to Dec 31, 2014.
Local media reports that Malaysia is a major supplier of bauxite to China, sending more than 20 million tonnes in 2015 compared to just under a million tonne in 2014. This amounts to 40% of China’s bauxite imports for its aluminium manufacturing industry last year, New Straits Times reported.
S Subramaniam
On Jan 7, 2016, Federal Health Minister S Subramaniam suggested that bauxite mining in Pahang be stopped completely if there is risk to public health, local media reported.
Pollution controversy
Environmental issues related to bauxite mining activities have been reported by Malaysian media since last year but have gripped national attention over the past weeks as rivers and lakes turned murky red, allegedly due to bauxite-related pollution.
In turn much criticism had been directed towards the state government for a perceived inaction over the matter. Bauxite mining commenced in the state in mid-2013, local media reported.
The Associated Press quoted Pahang Menteri Besar Adnan Yaakob as saying on Jan 6, 2016 that the state government earned RM46.7 million in royalty income from bauxite mining in 2015, up from RM2.4 million in 2014.
On the same day, Adnan dismissed claims that his state government had acted to resolve the issue. “We are not suffering from denial syndrome and we are not playing the blame game,” he told reporters. “The people’s welfare remains our top priority.”
Three-month freeze
Adnan was speaking at the same press conference where federal Natural Resource and Environment Minister Wan Junaidi Tuanku Jaafar announced a three-month freeze on bauxite mining operations in Pahang beginning Jan 15, 2016.
The freeze follows a halt on issuance of approved permits (APs) for bauxite mining since last week. At present there are 22 AP holders for bauxite mining and exports, local media reported.
According to Wan Junaidi, the three-month freeze has three main stages, the first of which will entail the Kuantan Port clearing all of its bauxite stockpile within the first month via exports.
“In the second month, the bauxite mining operators need to start clearing the 11 stockpiles outside the port,” Wan Junaidi was quoted by Sun Daily as saying. “And in the third month, they will need to have the stockpile areas fixed with all the necessary mitigating systems, including a proper drainage system, filtration and washing bays for lorries.”
The three-month moratorium may be extended further if industry players fail to comply with the requirements set out by the federal government before the freeze is lifted, Wan Junaidi said further.
Elements of corruption
Meanwhile the Malaysian Anti-Corruption Commission (MACC) said on Jan 6, 2016 that it has found elements of corruption in bauxite mining activities in Pahang following investigations sparked by numerous complaints over the matter.
“Based on these complaints, MACC found elements of corruption by certain quarters that are involved in the production of bauxite,” said MACC, adding it “views this matter seriously and will not hesitate to take action under the MACC Act 2009 against those who are involved in corruption and abuse of power”.
The New Straits Times further quoted an MACC sources as saying that the Commission is currently investigating all parties involved in the matter “from the lorry driver up to the top”.
On Jan 6, 2016, New Straits Times also ran a cover story reporting that the Pahang state government had only earned RM8 million from bauxite mining-related income instead of RM40 million that it should have, with the remaining sum apparently unaccounted for.
Illegal bauxite mining sites have also come into the federal government’s radar as part of the three-month freeze, which is slated to see a crackdown on such sites, said the federal government on Jan 6.
Enforcement is also set for reinforcements via a proposed increase in personnel at the state’s Minerals and Geosciences Department while the existing regulations and terms and conditions relating to bauxite mining and export will also be improved.
On Jan 7, 2016, the MACC arrested four Pahang Land and Mines Department officers for allegedly accepting bribes relating to bauxite mining, the Malay Mail Online reported. State wire agency Bernama tweeted that the alleged bribe amount was RM100,000.
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