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Selangor Quarries Affected By Licence Delays, Says Industry Body

[ 24-06-2014 ]
Selangor Quarries Affected By Licence Delays, Says Industry Body
KUALA LUMPUR, June 12 (Bernama) -- Quarries in Selangor are affected by the state government's delay in issuing renewals of licences for aggregate production, says the Malaysia Quarry Association (MQA).

This delay has reduced aggregate production in the state by 30 per cent, affecting the smooth implementation of national infrastructure projects, MQA president Teh Quen Chang told a media briefing here today.

He said this licence is required to extract, sell and transport aggregates.

"There has been a significant increase in the delays associated with the licence issuance and the duration validity of these licences has been shortened significantly.

"Eight quarries operating in state forest reserve land in Bukit Lagong, Gombak and Hulu Langat have not been issued their minor licences since Jan 1, 2014 and remained closed until Jan 20, 2014," Teh said.

He said the reissuance of the licences and their administation lies within the state's jurisdiction.

"Historically the minor licence was issued for a six-month period, but when this licence was reissued on Jan 20, it was only for a one-month period expiring on Jan 31.

"This continued for the next three months, but on March 31 the April-May minor licences were granted for a period of only two months," Teh said.

He said the state government has also been discussing with the quarry industry regarding a Production Sharing Contract (PSC), which he said could take significant portions of MQA members' profit without compensation.

"If this PSC concept is implemented, it could significantly erode the profit margins of existing quarry operators and their ability to invest in new technology to meet the needs of the construction industry in Selangor," he said.

He urged the state government to prolong the validity period of the minor licence and increase the royalties payable rather than implement a PSC.

The MQA represents more than 80 per cent of the country's quarry operators.

-- BERNAMA