SITUATED on the island of Borneo, Sarawak is one of Malaysia’s largest and most resource-rich states. It is renowned for its vast rainforests, rich biodiversity, and abundant mineral wealth, including gold.
The state is working to develop a sustainable and comprehensive mining industry that will enhance the economy and deliver substantial benefits to local communities, particularly by creating jobs and advancing technology.
HISTORICAL BACKGROUND OF GOLD MINING IN SARAWAK
Gold mining in Sarawak has a storied history, dating back to the early 17th century when Liu Shan Bang, a Chinese miner from Guangdong, migrated to Sambas, Kalimantan but following mistreatment by the Dutch, he relocated to Bau with a group of miners, initiating a rich tradition of gold mining in the region.
In the Old Bau area, Liu established the first gold mine and organised the 12 Kongsi Company, which operated the Mau San gold mine. This venture laid the foundation for the Old Bau settlement becoming one of the oldest and wealthiest in Sarawak. It facilitated active trade between Chinese miners and local communities, including the Bidayuhs and Malays.
By 1821, gold mining thrived until Rajah James Brooke imposed restrictions on direct trade, which led to the establishment of the Borneo Company in 1856. This company sought to control mining activities through taxation. In a show of resistance, Liu Shan Bang led 600 miners in a revolt against these high taxes, culminating in the tragic Chinese miners’ massacre. Despite these challenges, gold mining continued under the Borneo Company until 1921.
Significant mines were established during this period, such as the Tai Parit Gold Mine, one of the largest in Sarawak, until it ceased operations in 1921. Similarly, the Bidi Goldfields, operational from 1900 to 1911, showcased the area’s initial mining prosperity. However, by the 20th century, declining gold prices and outdated methods led to a downturn in the industry.
HARNESSING GOLD POTENTIALS
Today, gold mining has evolved significantly worldwide and in Malaysia thanks to the introduction of advanced technologies. This together with collaborations of responsible companies having proven success tracking records, such as Monument Mining Limited (“Monument”) will bring new opportunities to a sustainable future in developing this sector.
Monument Mining Limited (“Monument”), a TSX Venture (as “MMY”), a listed gold producer, has expressed its support for mining education and its intention to expand its potential operations in eastern Malaysia. The company is targeting new opportunities in Sarawak that may provide technologies, job opportunities, a knowledgeable workforce, and management experience to the Sarawak people. The company, which already fully owns the Selinsing gold operations in Malaysia, is eyeing growth in the region’s gold mining sector.
Monument has begun discussions with Centexs to support mining education programmes as part of its Environmental, Social, and Governance (ESG) commitment. With a strong track record as a responsible mining company in Canada, Monument has successfully operated the Selinsing gold mine for the past 17 years, contributing to local economic growth and providing substantial royalties to the state government.
Selinsing, a group of subsidiary companies of Monument Mining Limited, began operations in 2007 in Kuala Lipis, Pahang, and has generated substantial revenue, boasting approximately USD 550 million in gross earnings to date.
Cathy Zhai, Chief Executive Officer (CEO) of Monument Mining Limited, highlighted that the company’s innovative mining techniques have allowed it to produce gold at competitive costs —initially around USD 260 per ounce with an average of around USD 500 per ounce in past 12 years, now approximately USD 880, even as global gold prices soar up to USD 2,600 per ounce.
“Our success here reflects our ability to extract gold efficiently and ensures a sustainable cash flow for the company,” Cathy said.
The success of the Selinsing operation enabled Monument Mining to expand its assets to Western Australia in 2014, focusing on gold mining as well.
One of Selinsing’s success stories started with a five-year projected mine life, but it has now been extended to 12 years, with another five years to come.
Gold production far exceeded the initial estimates.
“At the beginning, we expected to generate around USD 60 million in gross revenue, but to date, we have generated USD 550 million, with a net cash flow of more than USD 280 million.
“This shows how successful our operations have been here, producing gold and generating a sustainable cash flow for the company.
“Even the cost of gold production at Selinsing is among the lowest in the world.
“Initially, the mine’s production was operated at an average cost of around USD 500 per ounce of gold, and even though gold prices have now increased, the company’s costs remain low at USD 880 per ounce.
“With global gold prices now reaching USD 2,600 per ounce, we can maintain healthy profit margins,” added Cathy.
The company continues to grow and is listed on the venture exchange stock market. It boasts a board of five directors from various countries, including Malaysia, Canada, Australia, and Europe.
GOLD MINING POTENTIALS IN SARAWAK
Cathy said that Sarawak, with its untapped potential gold resources, presents immense potential for redevelopment.
“Sarawak is a region with significant potential for redevelopment through more effective and environmentally friendly modern mining approaches.
“This potential is increasingly bright with the advent of advanced technology and the latest mining methods, which offer new opportunities to exploit the gold potential in the area.
“With the right technology and strategic partnerships, we can unlock the true value of our gold resources while benefiting local communities,” she said in an exclusive interview with the New Sarawak Tribune.
She added that although mining activities have decreased in past years in Sarawak, geological studies indicate significant potential for the development of modern mining in the region.
“Sarawak is viewed as a promising destination for modern gold mining. Even though traditional mining has long been abandoned, geological studies show that the area still harbours substantial and largely unexplored gold resources.
“Another factor supporting this potential is the rising gold prices in the global market, which increases the attractiveness of investing in gold mining operations there.
“With the global gold market becoming increasingly stable, especially in recent years, Sarawak has the opportunity to become a key player in the Southeast Asian gold market through investment in modern technology and strategic partnerships with international mining companies,” she emphasised.
Cathy expressed confidence that Monument will transform the mining industry through advanced technologies, experienced management, and skilled workforce training.
“We are confident that Monument will make a difference in the mining industry by introducing new technologies, gaining management experience, and training skilled workers.
“Mining is not only a backbone of the economy which would build new, modern infrastructure in the country such as advanced communications, newer power supplies, roads and harbours. It is also a foundation enabling new technology to be created, developed, tested, and succeeded through processes that motivate technical innovations and skill upgrades.”
“We work closely with local communities and the government to ensure prosperity in the areas where we operate.
“We have had preliminary discussions with several government officials and relevant agencies, including the Sarawak Technology Excellence Centre (Centexs), to explore potential partnerships, especially in developing local talent.
“We would like to convey our message to all that our ultimate goal is not only to generate returns on investment but also return economic benefits to the people of Sarawak,” she said.
