Bukit Besi rep claims no mining deal in constituency

(Malay Mail Online) – Bukit Besi assemblyman Roslee Daud has denied reports of any mining activity in his constituency, whether by China-based CAA Resources or any other company.

According to the Umno state lawmaker, smaller firms did previously carry out covert mining operations at “Iron Hill”, which was once home to the world’s largest mine, but they have since halted operations due to the drop in global prices for the commodity.

“For me who is staying in Bukit Besi, for now, there is nothing happening like what was reported … I am refuting those reports of a large-scale iron ore mining here,” Roslee told Malay Mail Online over phone.

On Monday, Terengganu Mentri Besar Datuk Ahmad Razif Abd Rahman denied that a Chinese firm was awarded a lucrative deal to reopen the Bukit Besi mines through dubious means, saying instead that no such company even approached the state government for such an arrangement.

In a strongly worded statement, Razif said the claims, made by CAA Resources’ chairman and chief executive Li Yang in a New York Times (NYT) article last week, were “blatant lies”.

Last week, Yang, a Chinese national, was reported telling the NYT in an article that his iron ore company CAA Resources was awarded a deal to reopen the Bukit Besi mines earlier this year.

He was also quoted telling the US-based daily that with the support of national leaders and the royalty, “you can do anything you want” in Malaysia.

With licence in hand, the report said that CAA Resources is now clearing Bukit Besi, famously known as “Iron Hill”, which was once the site of the world’s largest iron ore mine.

In 1971, however, the mine was closed, reportedly due to depleting iron ore, bureaucracy and union troubles, and had remained somewhat idle for the next four decades.

But CAA Resources, having sidestepped local curbs, now sees potential in its “Iron Hill” investment, despite the plummeting global prices of iron ore.

Iron ore prices are down by nearly half since the start of the year to US$70 (RM265) a metric tonne, which is a five-year low.

After the article was picked up by the local press, the Malaysian Anti-Corruption Commission said it will investigate the allegations made by Yang and will seek to meet with the company chairman.