By CHOONG EN HAN
November 5, 2012
PETALING JAYA: While gold mining is not a new business activity in Malaysia, it does not seem to have any significant domestic capital market participation.
But the striking fact remains that at least five of the country’s gold mines are part of the assets of many listed companies abroad.
The company is under the control of Datuk Seri Andrew Kam Tai Yeow with a 29.5% stake, who is also its chairman and chief executive.
Peninsular Gold is the only listed gold company with assets in Malaysia that is managed by locals, while the others seem to have foreign ownership (partly) and management.
But although profitable, Peninsular Gold’s earnings are paltry for now.
For its six-months ended December 2011, the company recorded a net profit of £86,049 (RM421,734) on revenue of £6.805mil (RM33.35mil). The year before, it reported a profit of £657,283 (RM3.22mil) on revenue of £14.19mil (RM69.54mil). Its market capitalisation stands at around £18mil (RM88mil).
Peninsular Gold’s plans have been to use better technology in the extraction of gold at its Raub plant, which has a proven reserve of 202,000 ounces of gold.
Industry experts say there are three major mines in Malaysia located in Raub, Penjom and Selinsing, in Pahang.
Since June 2011, the Penjom mine has changed ownership. Norwegian Avocet Mining PLC divested its interest in the mine, which is now under the wings of privately held PT Bukit Makmur Mandiri Utama, Indonesia’s second-largest mining contractor.
Details of the mine has been off the radar but according to last known data, the mine had produced 39,150 ounces of gold for the nine-months ended Sept, 2010.
The Selinsing mine, operated by Canada’s Monument Mining Ltd, is another well-established gold mine, with a production of 44,585 ounces of gold recorded for its year ended June 2012. The mine lays claim to having one of the lowest production costs at US$306 (RM930) per ounce.
Monument Mining is also exploring other mining projects in the country, including the Mengapur polymetalic project near Sri Jaya, Pahang. The mine is said to have deposits of copper, sulphur, iron, gold and silver.
Another interesting miner is Singapore-listed CNMC Goldmine Holdings Ltd which has the rights to the 2,370 acres Sokor gold field. CNMC reckons that this gold field is the most prospective but undeveloped hard rock gold mining area in Malaysia.
In June, CNMC announced its gold reserves rose by 20% to 82,000 ounces.
CNMC is founded by one Lin Xiang Xiong, a Chinese national who is the chief advisor for China International Trade to the Kelantan state government.
For its six months ended June, the company recorded a net profit of US$482,646 (RM1.46mil) on a revenue of US$5.178mil (RM15.74mil).
Over in East Malaysia, a new kid on the block has emerged in the form of Canadian firm Olympus Pacific Minerals Inc. Olympus acquired the 1,400-sq-km Bau gold project as a result of the merger with Zedex Minerals Ltd in 2009, and now has a 83.25% interest in the project.
The project has 560,000 ounces of indicated gold and another 1.89 million ounces of inferred gold.
The Bau region is a historic gold field with many geological similarities to the Carlin District of Northern Nevada, which is one of the world’s largest gold fields.
Largely focused in South-East Asia, Olympus is the largest gold producer in Vietnam and operates several underground narrow vein gold mines and an open-pit gold mine at its two production sites in Vietnam. It also has a gold field in the Philippines.
Government controlled Petronas Oil and Gas
“PETRONAS, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company that was founded on August 17, 1974. Wholly owned by the Government of Malaysia, the corporation is vested with the entire oil and gas resources in Malaysia and is entrusted with the responsibility of developing and adding value to these resources. PETRONAS is ranked among Fortune Global 500‘s largest corporations in the world.”
“PETRONAS was not the first company to extract oil or gas in Malaysia. It was Royal Dutch Shell that began the oil exploration in Sarawak, then under the White Rajahs, at the end of the 19th century. In 1910, the first oil well was drilled in Miri, Sarawak. This became the first oil producing well known as the Grand Old Lady. Shell was still the only oil company in the area in 1963, when the Federation of Malaya, having achieved independence from Britain six years before, united with Sarawak and Sabah, both on the island of Borneo, and became Malaysia. The authorities in the two new states retained their links with Royal Dutch Shell, which brought Malaysia’s first offshore oil field onstream in 1968.
Meanwhile, the federal government turned to Esso, Continental Oil, and Mobil, licensing exploration off the state of Terengganu, in the Malay Peninsula, the most populous region and the focus of federal power. By 1974, however, only Esso was still in the area.”
“Further, an agreement between Malaysia and Indonesia, signed in 1969, had settled doubts and disputes about each country’s claims over territorial waters and offshore resources at a time when both were heavily indebted to Organization for Economic Co-operation and Development (OECD) governments and banks as well as to the International Monetary Fund (IMF) and the World Bank.” contin: http://en.wikipedia.org/wiki/Petronas
- Send foreign mercenaries into the victim state to foment ‘revolt’ (MC-> infiltrate peaceful protests).
- Provoke the victim state into using its armed forces to oppose the foreign invaders.
- Have the media present this lawful defensive action by the victim state as the cruel oppression of a dictatorship.
- Send your armed forces to complete the job of regime change.
- Establish a new puppet regime with a banking system consisting of a privately held central bank that issues currency on a debt basis, thus enslaving the population.
It would appear that Malaysia have a history with the IMF and World Bank, which will be in their favor – know thy enemy), unless they vote the Muslim Brotherhood (Freedom and Justice Party) into power…