Sabah Has Not Issued Any Gold Mining Licences Says Hajiji

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Sabah chief minister Hajiji Noor told the state legislative assembly that a prospecting licence is not a lease for mining and does not entitle the holder to extract any mineral. (Facebook pic)
PETALING JAYA: The Sabah government has yet to reach the stage of issuing mining licences, particularly for gold, says chief minister Hajiji Noor.
He told the Sabah legislative assembly that the state only issued prospecting licences which allow firms to conduct exploration work for minerals within designated areas.
He was responding to state opposition leader Shafie Apdal (Warisan-Senallang), who asked about a plot of land measuring about 400ha in Nagos, Semporna, allegedly granted to certain parties for gold exploration.
Hajiji also emphasised that a prospecting licence is not a lease for mining and does not entitle the holder to extract any mineral.
As for mining leases, Hajiji said matters such as government equity, royalties, mining lease fees, and other interests would be discussed and decided by the state Cabinet when the time comes.
“We haven’t reached that stage yet – we haven’t even issued any mining licences,” he said.
Commenting on the area in Nagos, Hajiji explained that mineral exploration in the area was technically complex due to the geological conditions, the type of minerals involved, infrastructure limitations, and the need for high capital investment – all of which carry significant risk.
“Exploration requires substantial upfront investment without any guarantee of returns. Therefore, allowing private companies to carry out exploration work protects the state from financial liabilities and risks.
“All exploration costs are fully borne by the private companies holding the prospecting licences.
“By transferring the risk to private entities, the state government is freed from the need to invest capital, manage operations, or handle marketing and sales,” he said.
On whether prospecting companies will eventually be granted mining licences, Hajiji said the government did have a responsibility to consider such opportunities for the companies involved.
“But questions such as whether the state will take a 20%, 30%, or even 50% stake – we haven’t got to that stage yet. Right now, it’s still just exploration,” he said. - FMT

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