Wednesday, 20 January 2016

Shippers: One month not enough to clear bauxite piles

By Jonathan Edward
KUANTAN, Jan 18 — The bauxite stockpile at Kuantan port will take more than a month to clear, according to shipping industry sources. They hope the moratorium brings positive results so there will not be further disruption to their business.

A manager in a shipping company that exports the ore to China said the stockpile at Kuantan was over two million tonnes, and shipping it out in time was proving to be a headache.


“The one-week timetable allocated to us is unrealistic. At its peak, Kuantan port is capable of loading and shipping out over three million tonnes per month but that is with an all-out effort,” he said.

In addition to the tight deadline, no new Approved Permits (APs) had been issued to export ore and this was causing the stockpile to build up rather than cleared.

“We have been told a special AP will be issued by the Natural Resources and Environment Ministry but that it may take some time, possibly a few weeks,” he said.

The manager said some shippers were facing delays because of ongoing negotiations on the ore price.

“But the stockpile is not solely our responsibility. The authorities at Kuantan Port need to do their part to ensure everything goes like clockwork,” he said.

He said finger-pointing between the shippers and port authorities had also built up tension.

“They are accusing us of delaying the operations but they must remember the APs have not been issued and that we have logistical constraints,” he said.

It was reported Kuantan Port Consortium chief executive officer Datuk Khasbullah A. Kadir had told the public not to have high hopes over the clearing of the stockpile.

He said the port had been given until February 15 to clear the stockpile.

The ministry had said the port would have one week from the start of the moratorium to clear its central stockpile and that failure to do so would result in punitive action.

Another shipping operator said he welcomed the moratorium and hoped all the guidelines outlined would be fully implemented.

“As a businessman, constant interruptions to business are not a good thing. But I am willing to accept the rationale behind the stop-work order,” he said.

“What remains to be seen is whether the authorities will do like they said and bring in sweeping changes to regulate the industry.”

He suggested the industry be consolidated and have fewer miners involved to better regulate the industry.

Bernama reports two more officers of the Pahang Land and Mines Department will be charged in the Sessions Court here today with corruption in connection with the bauxite mining activities.

A spokesman for the Malaysian Anti-Corruption Commission said they would be charged under Section 17(a) of the MACC Act 2009, which carries an imprisonment for up to 20 years and fine of RM10,000 or five times the value of the gratification, whichever is higher, if found guilty.

On Wednesday, two officers of the department, Assistant Land Officer Fadly Ab Malek, 35, and Administrative and Diplomatic Officer Syed Umar Khalil Syed Khalid, 34, were charged with accepting RM30,000 in gratification from an unlicensed bauxite miner.  Both pleaded not guilty and were allowed bail of RM10,000 each pending mention on February 5.

The MACC has detained and recorded statements from 10 Pahang Land and Mines Department officers and four civilians to date.

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