While the world’s major production of gold is controlled by large mining companies, it is common to see thousands of common men working independently, some work illegally, to find their fortune in gold. Mining of gold can occur on any level, from massive machinery to the simplest and most basic prospecting equipment. Production of gold is increasing with the exploration of new mines and advent of new technological advances in the industry.
One notable country producing gold is Malaysia. Tracing the history of mining in Malaysia, tin mining which was occupying the top slot in the list of mining is no longer a big business after the collapse of the global market in 1985.
Small-scale artisanal miners have gotten involved in the mining of minerals. What started out as small gold prospecting, the extraction of gold is now a major industry in Malaysia.
Current Mining areas in Malaysia
Gold mining is carried out in the five states of Terengganu, Kelantan and Pahang. Pahang mining carries a distinction of producing 99 % of raw gold produced in Malaysia, employing around 900 workers to carry out the job.
The production of gold during the early years of mining was around 3000 kilograms of raw gold, which has increased to an estimated 4625 kilograms of raw gold production in 2012. This throws a clear indication as to where this industry is leading in the future.
New discoveries of gold in Malaysia has opened huge opportunity for mining companies around the world. Opportunity in gold mining is available in Malaysia as the belt stretching from Kelantan, Terengganu, and Pahang and up to Johor and Sabah, known as the Golden Belt, is blessed with huge deposit of gold, waiting to be mined.
Gold is having a huge demand with the increased price over the past decade. Even with recent drops in the precious metal from its high a few years ago, mining is still lucrative if rich enough deposits can be identified.
As the gold mining industry has become attractive over the past few years, governments the world over are in the process of rethinking to issue more licenses to lease gold mines. If you look at the opportunities for gold mining in Malaysia, apart from Pahang, the highest producer of gold (95% of gold produced in Malaysia) from their Pejom and Kuala Lipis mines, five more mines in Jeli, Kelantan, six gold mines in Raub and Kuala Lipis also are in the business of commercial excavation of gold.
New opportunities for gold mining are found in Lubuk Mandi in Terengganu, Johor and Mersing. The Eastern belt with its hard rock formation is rich with gold deposit and it requires substantial capital investment to prospect, explore and mine the area. Apart from this the high tribute payment between the owner of the mining lease and the operator, royalty and payment of corporate tax calls for major mining groups around the world who are capable of investing huge amount.
As Malaysia certainly looks promising and lucrative, strong involvement by foreign investors collaborating a joint venture with domestic players or by their direct investment is sure to bring in rich dividend by Gold to the investor.