ASEAN Mining Sector - Potential catalyst of the economic growth

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Global tin and mineral resource mining veteran Datuk Seri Dr Mohd Ajib Anuar expects 2015 to be an exciting year for the Asean mining and mineral resources sector.This is due to the launch of the Asean Economic Community (AEC), a powerful economic and trading block serving the South-East Asian (SEA) market, in January next year. “The SEA market, with about 600 million consumers, has a large industry base that can offer good investment opportunities for the global mining players to tap into the region, which is rich in mineral resources such as gold, tin, iron ore and copper,” he told StarBiz recently.

Ajib, the former Malaysia Smelting Corp Bhd group chief executive officer said, “We believe 2015 will be a landmark year where the integration of AEC will kickstart and AFMA can be the prime mover in such an integration process, particularly within Asean’s mining and mineral resource sector.” Asean Federation of Mining Associations (AFMA), which will celebrate its 30th year of official establishment next year, comprises of four founding members: the Malaysian Chamber of Mines (MCOM), the Indonesian Mining Association (IMA), the Chamber of Mines of the Philippines and the Mining Industry Council of Thailand, as well as the Lao Mining Association, the Cambodian Association of Mining and Exploration Companies, and the Myanmar Federation of Mining Association.

The implementation of the cooperation activities reflected in the ASEAN Minerals Cooperation Action Plan (AMCAP) 2011-2015 aimed on the measures carried out under the strategic priorities, namely a) Facilitating and Enhancing Trade and Investment in Minerals, b) Promoting Environmentally and Socially Sustainable Mineral Development, and c) Strengthening Institutional and Human Capacities in the ASEAN Minerals Sector. The launch of the ASEAN Mineral Database Information Systems (AMDIS). AMDIS contains data and information concerning mineral resources, minerals trade, research and development in minerals, capacity building, regulation, as well as minerals company profile.

The primary objectives of AFMA are fostering cooperation and mutual assistance among the members, promoting the dissemination and exchange of information on the mineral policies, laws and regulations of member countries and fostering research and studies of subjects relevant to the mineral industry, adopting measures to protect the mineral industry in SEA. Its other objectives include providing updates on new or advanced mining techniques and technologies, establishing and maintaining relations with other international mining bodies, and representing the region’s mineral industry at international conferences.

Malaysia’s economy is expected to grow between 5% and 6% in 2015, compared with 5.5% to 6% in 2014, driven by improving external demand and resilient domestic economic activity. Growth in gross domestic product (GDP) will be private-sector led, supported by stronger investment and sustained consumption spending according to the Malaysian Economic Report 2-14-2015. Other sectors which are expected to drive the economy next year will be the construction sector, which is projected to grow by 10.7% (2014: 12.7%) on on-going and new major infrastructure projects under the Economic Transformation Programme (ETP) and in preparation for additional projects under the 11th Malaysian Plan. The mining sector is expected to make a comeback on projects undertaken to enhance oil recovery from existing fields, and exploration and discovery of new fields. Mining sector is expected to grow 2.8% in 2015 from 0.7% in 2014 due to higher production of crude oil and natural gas;