KUALA TERENGGANU: The mining sector in Terengganu showed positive growth with an increase in the number of new mines and mineral extraction, according to the Third Series of the Auditor General’s Report for 2014.
Revenue collection by the state Land and Mines Office was also received positively. However, the report stated that the application process was too ‘time-consuming’, compounded by weak monitoring and ineffective enforcement activities.
The report on Terengganu also identified weaknesses and a decline in royalty revenue at the Hulu Terengganu Land Office while mineral royalties showed arrears at the Land and Mine Offices.
Royalty revenue for rock material was under-collected as collection was based on old rate instead of the new rate.
It also pointed out that the issuance for mining licences was slow and that permanent forest reserves approved for mining leases were not gazetted out of the permanent forest reserve area.
The report added that ineffective monitoring resulted in violations of procedures and regulations.
In view of the weaknesses, the Auditor General’s office recommended that the Land and Mines Office ensures that the mining license application process be completed within eight months.
It also recommended that the Land and Mines Office review the policies and regulations of bauxite mining and the volume of lorries used in transferring the rock minerals.
Monitoring and enforcement activities and transfer of rock material be carried out on regular basis to avoid non-compliance with the stipulated conditions.-NST
