BEM Jun06-Aug06 (Mineral)
Transcription
BEM Jun06-Aug06 (Mineral)
A AG RU RA LE TE MB JU LEMBAGA JURUTERA MALAYSIA BOARD OF ENGINEERS MALAYSIA M A L AY S I A KDN PP11720/1/2006 ISSN 0128-4347 VOL.30 JUN - AUG 2006 RM10.00 MINERALS RA LE TE Volume 30 June - August 2006 M A L AY S I A contents AG RU MB JU A 4 President’s Message Editor’s Note 6 Announcement Publication Calendar Event Calendar 7 Cover Feature Efforts Towards Sustainable Mineral Development In Malaysia 12 Minerals Security – How Vulnerable Is The Construction Industry? 18 Minerals: Economic Benefits, Research Excellence And Sustainable Development Engineering & Law 24 Amending Standard Forms Of Construction Contracts – Curing Or Causing Problems? 18 Feature 30 Internationalisation Of Malaysia’s Mineral Industry Via Effective Occupational Safety And Health 30 36 National Minerals Policy: Catalyst For Malaysia’s Economic Development 42 Quarry Blasting And The Neighbour, Fear & Reality: A Malaysian Perspective 53 46 Legislation For Quarrying And Mining Environment 50 Coastal Protection Against Wave Energy – Part 2 56 Engineering Nostalgia 56 The Changing Face Of Kuala Lumpur Cover picture: Penjom goldmine Source: www.jmg.gov.my THE INGENIEUR 2 President’s Message KDN PP11720/1/2007 ISSN 0128-4347 VOL. 30 JUNE-AUGUST 2006 Members of the Board of Engineers Malaysia (BEM) 2005/2006 President YBhg. Dato’ Prof. Ir. Dr. Wahid bin Omar Registrar Ir. Dr. Mohd Johari Md. Arif Secretary Ir. Dr. Judin Abdul Karim Members of BEM YBhg. Tan Sri Dato’ Ir. Md Radzi Mansor YBhg. Datuk Ir. Hj. Keizrul Abdullah YBhg. Mej. Jen. Dato’ Ir. Ismail Samion YBhg. Dato’ Ir. Shanthakumar Sivasubramaniam YBhg. Datu Ir. Hubert Thian Chong Hui YBhg. Dato’ Ir. Prof. Chuah Hean Teik Ar. Dr. Amer Hamzah Mohd Yunus Ir. Henry E Chelvanayagam Ir. Dr. Shamsuddin Ab Latif Ir. Prof. Dr. Ruslan Hassan Ir. Mohd. Rousdin Hassan Ir. Prof. Dr. Hassan Basri Tn Hj. Basar bin Juraimi Ir. Ishak Abdul Rahman Ir. Anjin Hj. Ajik Ir. P E Chong Editorial Board Advisor YBhg. Dato’ Prof. Ir. Dr. Wahid bin Omar Chairman YBhg Datuk Ir. Shanthakumar Sivasubramaniam Editor Ir. Fong Tian Yong Members Ir. Mustaza Salim Ir. Chan Boon Teik Ir. Ishak Abdul Rahman Ir. Prof. Dr. K. S. Kannan Ir. Prof. Dr. Ruslan Hassan Ir. Prof. Madya Dr. Eric K H Goh Ir. Nitchiananthan Balasubramaniam Ir. Prof. Madya Megat Johari Megat Mohd Noor Ir. Prem Kumar Executive Director Ir. Ashari Mohd Yakub Publication Officer Pn. Nik Kamaliah Nik Abdul Rahman The recent Economic Report 2004/2005, presented during Budget 2005, indicates that economic remuneration based on contributions of the minerals industry towards the Gross Domestic Products (GDP) has gradually increased from RM6.7 billion in 2003 to RM17.5 billion in 2004; and is expected to further increase to over RM18.5 billion in the near future. This encouraging economic outlook is a financial bonus to the Government and society for further national development. In this New Economic Era of Globalisation, Malaysia’s minerals sector needs to upgrade to cutting-edge knowledge by its workforce to stay competitive in this knowledge-based economy. The industry with the advantage is one that has the expertise, personnel and knowledge on novel techniques for further industrial development. The minerals industry has always been viewed as the fundamental foundation towards the further enhancement of any nation worldwide striving for further national development and industrialised national status. Owing to the Malaysian Government’s rapid industrial development programme, ‘Vision 2020’, the increase in demand for high-quality minerals for the construction, manufacturing, agriculture, environmental and petroleum industries has greatly assisted the rapid growth of Malaysia’s minerals sector. This sector is vital to the nation’s industrialisation programme since it plays a major role in sustaining all the major industries towards further industrial development. A mineral development venture is capital intensive and the end returns are very slow; normally in the region of 10 years. Acknowledging this economic scenario worldwide, it is most beneficial to the Government and the nation to draw up long-term plans with the principal aim of safeguarding the minerals industry towards sustainable development for effective national and industrial development. Policies thus need to be enhanced for systematic mineral development taking into account the importance of the environment, and occupational safety and health for the well-being of society today and the continuous economic progress of future generations. Dato’ Prof. Ir. Dr. Wahid bin Omar President BOARD OF ENGINEERS MALAYSIA Assistant Publication Officer Pn. Che Asiah Mohamad Ali Design and Production Inforeach Communications Sdn Bhd The Ingenieur is published by the Board of Engineers Malaysia (Lembaga Jurutera Malaysia) and is distributed free of charge to registered Professional Engineers. The statements and opinions expressed in this publication are those of the writers. BEM invites all registered engineers to contribute articles or send their views and comments to the following address: Publication Committee Lembaga Jurutera Malaysia, Tingkat 17, Ibu Pejabat JKR, Jalan Sultan Salahuddin, 50580 Kuala Lumpur. Tel: 03-2698 0590 Fax: 03-2692 5017 E-mail: [email protected] [email protected] Web site: http://www.bem.org.my Advertising/Subscriptions Subscription Form is on page 40 Advertisement Form is on page 41 Editor’s Note The feature articles in this issue on ‘minerals’ focus on national policies and strategies in the mineral sector. As highlighted in the Ninth Malaysian Plan, the adoption of environment-friendly practices will be emphasised through the adoption of the Minerals Enactment and Quarry Rules by all States. The Publication Committee is pleased to acknowledge an increase in the sale of The Ingenieur, particularly to graduate engineers and private organisations – thanks to our contributors for their support and quality articles. Ir. Fong Tian Yong Editor THE INGENIEUR 4 Announcement Publication Calendar The following list is the Publication Calendar for the year 2006. While we normally seek contributions from experts for each special theme, we are also pleased to accept articles relevant to themes listed. Please contact the Editor or the Publication Officer in advance if you would like to make such contributions or to discuss details and deadlines. September 2006: BUILDING December 2006: ENVIRONMENT March 2007: AGRICULTURE UNITI CONSULTANTS SDN. BHD. ( 399605 – P ) Engineering And Project Management Consultant ● ● ● ● EVENT CALENDAR ● ● Course Title: Elements of Applied Process Engineering Date: Sept 2006 (5 Days – date TBD) CPD: 30 Hours CPD Points. Time: 9am – 5pm Fee: RM 5,850/pax Contact: EDS Asia SDN. BHD Tel: 03-2287 2977 (Ms. Low) Civil and Structural Engineering Road and Bridges Stormwater Management Environmental Engineering Waste Management Project Management KUALA LUMPUR : No. 37-1C, Jalan 5/76B, 55100 Desa Pandan, Kuala Lumpur. Tel : 03-9200 5062 Fax : 03-9283 6035 JOHOR : No. 8-01, Jalan Seri Perkasa 2/1, Taman Tampoi Utama, 81200 Johor Bahru. Tel : 07-241 7381 Fax : 07-241 7533 NEGERI SEMBILAN : No.25, Jalan Bunga Raya 8, Senawang Business Centre, Taman Tasik Jaya, 70450 Seremban, Negeri Sembilan. Tel : 06-678 0203/06-679 2037 Fax : 06-679 2308 Email: [email protected] / [email protected] Website: www.uniti-consult.com.my By En. Shahar Effendi bin Abdullah Azizi, Deputy Director (Mines & Quarry Services) Technical Services Division, Department of Minerals and Geoscience Malaysia In this paper, the author outlines briefly the efforts taken by Malaysia since the early 19th century, when tin was first mined, to address environmental problems. He states that although minerals can be a potential source of wealth in most developing countries, minerals can also be a major source of degradation to the physical and social environment unless properly managed. As such, the Malaysian Government through the Mineral Development Policy and Planning (MDPP) Project in 1991, came up with the formulation of the National Mineral Policy which inter alia, includes measures to be taken to sustain mineral development in the country. This paper includes a brief description of the regulatory and institutional framework to achieve those measures which also address environmental protection, conservation and rehabilitation. Also mentioned in this paper is the concept of rezoning of ex-mining land towards best use. M inerals are non-renewable resources essential to the needs of national development and mankind. For most products, there is no substitute for minerals. Mineral development projects are high risk, capital and technology intensive ventures with long gestation periods. Minerals can only be developed after they have been located by exploration and also after rights to mine them have been obtained. Minerals won from the ground can be a potential source of wealth in most developing countries and this is true in the case of Malaysia where for more than a century , tin was one of the commodities that constituted the pillars of the Malaysian economy until it collapsed in the mid 1980s. However, in addition to generating wealth, mining can also be a major source of degradation to the physical and social environment unless it is properly managed. Today, however, technologies and management tools are available to minimise as well as to counter the TT HH EE II NN GG EE NN II EE UU RR 7 negative impact of mining, and society expects the mineral resource industry to apply high standards of environmental management to all projects. Minimising the damage brought upon by mining operations depends quite a lot on sound environmental practices in a framework of balanced mineral and environmental legislation. Thus, in the late 1980s when the Malaysian Government was embarking on the Mineral Development Policy and Planning cover feature Efforts Towards Sustainable Mineral Development In Malaysia cover feature production of essential mineral commodities. This worldwide phenomenon of environmental degradation was not restricted only to the mining industry but also common to other industries as well. Notwithstanding the above, many of Malaysia’s large mining companies such as Malaysia Mining Corporation (MMC), Mamut Copper Mining Sdn. Bhd, and Johore Mining and Stevedoring Sdn. Bhd., have successfully undertaken activities and programmes in the protection and conservation of the environment. The National Mineral Policy (MDPP) Project which aims to attract more investment and to revitalise the mineral sector, one of the subject matter included in the package was the provision of suitable mechanisms for the adoption of a more appropriate approach towards environmental protection, conservation and rehabilitation. The Project was completed in 1991, culminating in the formulation of the National Mineral Policy. Early Initiatives Environmental awareness related to mining in Malaysia has been realized since the 19th century when the earliest mining legislations were introduced to the then two tin-rich states of Perak and Selangor in 1877 and 1891 respectively. In those early days, the major concern regarding environmental protection was based mainly on the conflict that arose between the interest of mining and the interest of agriculture and forestry. The first Mining Enactment of the Federated Malay State (F.M.S.) was passed in 1911 and followed by many amendments were made. All other State Enactments are said to be similar with or modelled after the Mining Enactment Cap. 147. The earlier State Mineral Enactments were more concerned with the control of the discharge of suspended solids into streams and watercourses, and the discharge of chemicals deleterious to animal and plant life. However, these enactments do not have any specific sections dealing with the rehabilitation of mining land. What was practiced then in as far as rehabilitation was concerned was the concept of “filling and levelling agreement” or “stablisation agreement” . To some extent, these measures have not been successful due to lack of proper planning and the absence of any policy making body to decide or plan for the end use after mining is completed. In many cases in the past, land that was worked on was again re-mined so that any compliance with previous filling and leveling requirements would be meaningless. This has led to many mine holes left unfilled. As a result of historical and ongoing mining, there has been to some extent, some environmental degradation in many areas in Malaysia especially around the tin-rich areas in the states of Perak and Selangor. It cannot be denied that, mining effect changes in the natural environment to varying degrees depending on the location of the mine, the scale of the mining operation, method of mining operation and the mineral characterisation. Even so, the awareness about mining and its impact on the environment has only evolved considerably over the last few decades. Until the 1970s, while mineral deposits were being developed, environmental issues were not a major consideration for either the industry, Government or community at large. Environment degradation was accepted as the price that had to be paid for the THE INGENIEUR 8 The Malaysian mining industry is principally guided by the National Mineral Policy which provides the foundation to develop an effective, efficient and competitive minerals industry in Malaysia, an attractive investment climate and an appropriate regulatory environment for the mineral sector. The thrust of the Policy is to expand and diversify the mineral sector through:● ● ● Optimum beneficial exploration and development of mineral resources; The maximisation of the use of research and development (R&D); and Shifting the emphasis from mining of alluvial tin to that of other minerals It is noteworthy to mention here that the Policy places strong emphasis on the need for the protection of the environment and support for sustainable development of mineral resources. Essentially, there are eight regulatory objectives laid down in the Policy, namely:(i) To contribute to National and State development by promoting diversification and expansion of the mineral industry; (ii) To provide an attractive, efficient and stable mineral sector regulatory framework; (iii) To encourage exploration and a beneficial expansion of the mineral industry; Regulatory Framework Malaysia follows a Federal system of Government with divided responsibilities between Federal and State Governments in accordance with the Federal Constitution. With regard to the mineral sector, the Federal List in the Constitution states the following Federal areas of responsibility; ● ● ● ● development of mineral resources; mines, mining, minerals and mineral ores; purchase, sale, import and export of minerals and mineral ores; and regulation of labour and safety in mines. Under the Federal Constitution, land matters are a State responsibility as stipulated under the State List through which the States are vested with the authority to grant licences for prospecting and exploration, and mining leases and certificates As for matters under jointresponsibility stipulated under the Concurrent List, these include matters pertaining to environmental protection as well as rehabilitation of mining land. It is to be noted here that at the Federal level, environmental control comes under the jurisdiction of the Department of Environment as stipulated in the Environmental Quality Act, 1974. However, for the States of Sabah and Sarawak, both in the island of Borneo, have their own environmental laws which is the Conservation of Environment Enactment 1996 and Natural Resource and Environment Ordinance 1958 (Cap 84) respectively. In the above environmental laws, mining and quarrying are listed as prescribed activities which require them to be subjected to an EIA (Environmental Impact Assessment) approval. While the Environmental Quality Act acts as the umbrella act related to environmental matters at the macro level, the respective mining laws and their related guidelines are the actual legal instruments which spell out the details of the operations that have to be observed in relation to mining. At the Federal level, the law which provides for the inspection and regulation of the exploration and mining of minerals and mineral ores, and for other matters connected therewith is the Mineral Development Act 1994. This Act covers the statutory and legal requirements that have to be observed by the mining operators before, during and after the commencement of mining operations in accordance with good and safe practices as may be prescribed under the Act and any other written law relating to environment. Under the Act, an operational mining scheme has to be approved before mining operation can commence and operation has to be carried out in accordance with the scheme. The Act also stipulates that abandoned mines and waste retention areas shall be made safe as may be prescribed. The Act falls under the ambit of the Department of Minerals and Geoscience which is the enforcement agency. At the State level, the law pertaining to the issuance of exploration and prospecting licences and mining leases is the respective State Mineral Enactment which has been harmonised to bring some semblance of uniformity between all the States. The Enactment is enforced by the respective State Director of Lands and Mines or Director of Lands and Survey (as in the case of Sabah and Sarawak). One of the significant facets of the Enactment is the rehabilitation requirement whereby land subjected to a mineral title shall be rehabilitated to a state which will allow future economic use or timely reversion to a safe and, whenever realistically and economically possible, aesthetically natural-like condition. This mechanism is made possible through the establishment of rehabilitation funds for the purpose of rehabilitation of mining lands under two catagories depending on the scale of the mining operation, namely:(i) THE INGENIEUR 9 Mine Rehabilitation Fund In this case, the lessee of the land which authorises large scale operation would first submit a mine rehabilitation plan which indicates amongst others, an estimated total cost of rehabilitation for the approval by the State Mineral cover feature (iv) To provide a stable and conducive fiscal system; (v) To accord the mineral industry a high land use priority in areas open for exploration; (vi) To enhance the development of domestic expertise in mineral resource development through research, education and training activities; (vii) To provide environmental protection and management of social impact; and (viii) To provide timely and accurate regulatory, scientific and technical information. cover feature Resources Committee (SMRC). Once approved a Mine Rehabilitation Fund would be established specifically for that particular mine whereby the said lessee would then be required to pay annual payments to the Fund based on the estimated total cost of rehabilitation over a stipulated period of the lease tenure. This Fund is administered by the SMRC. (ii) Common Rehabilitation Fund This Fund is established collectively for those mines that falling under the category of small scale operations whereby each respective lessee contributes an annual fee at the rate of 1% of the gross sales value of all minerals won during a calendar year from the mining land that is subject to the lease, or a prescribed annual fee, whichever is greater. As in the Mine Rehabilitation Fund, this Fund is also administered by the SMRC. Another main feature of the State Mineral Enactment is the zoning of areas into four main categories, namely:● Areas closed for mining - This category would include areas gazetted as National Park, conservation areas and permanent forest reserves. Also included are geological heritage sites, examples of which had been zoned are the Cambrian Park in Perak, Klang Gate in Selangor and Hot Springs in Kelantan. ● Areas for competitive bid ● Areas reserved for minerals - Areas under this category would include those identified as having mineral deposits underneath which might have potential in future. Once reserved as such, only certain specified activities are allowed on the land which would not sterilise the minerals if it is open up for mining in future. ● Areas open up for individual mining licence. Institutional Framework For the successful implementation of the National Mineral Policy, which include the co-ordination of policy decisions and streamlining of activities, new institutional framework is also established, namely:(i) National Mineral Council The National Mineral Policy provides for the setting up of a National Mineral Council which is chaired by the Deputy Prime Minister. The membership of T H E I N G E N I E U R 10 this august Council is made up of all the Menteri Besar and Chief Ministers of the respective States and some Federal Ministers from the related ministries and the Federal Attorney General. This Council deliberates on issues affecting the interest of the Federal and State Governments in respect of mutual benefits to be derived from the development of the mineral sector. This Council also periodically reviews the current Policy so that it is updated to keep in consonance with current and new developments taking place in the regional and international scenario. With this periodical review, the National Mineral Policy would be in a better position to cater to the needs of the Government and investors. (ii) State Mineral Resources Committee The State Mineral Enactments (or Ordinances as the case may be) provide for the establishment of a State Mineral Resources Committee which is chaired by a Chairman appointed by the respective State Authority. The composition of the Committee varies from State to State but generally, include the Legal Advisor, Lands and Mines Director, State Economic Planning Unit Director, Forestry Director and representatives of the Director-General of Minerals and Geoscience and Director-General of the Department of Environment. Under the said enactment, this Committee is given certain responsibilities which, inter alia, include vetting and recommending applications for prospecting licences, exploration licences, proprietary mining licences and mining leases to the State Authority; administering the Common Rehabilitation Fund and Mine Rehabilitation Fund; and approving the mine feasibility study and rehabilitation plan. ex-mining lands. Some of the findings include the following:- In the mid 1980s the world tin industry collapsed and consequently many tin mining operators had to close their operations leaving behind abandoned mines and disused ponds. The effects of tin mining include widespread degradation of the environment from its legacy of retention ponds, mine spoils and sand piles, and created eyesores to the public. This is inevitable in Peninsular Malaysia where the adverse effects of mining tend to be visible as the main tin mining areas are located within the vicinity of urban centers – indeed the cities and towns were founded on prosperity of tin mining. Despite the notion that rehabilitation of ex-mining land has several constraints for development, the potential of this land to be developed is enormous. Within the context of sustainable development, the alternative usage of ex-mining lands through rehabilitation exemplifies the benefits of adding ecological, economic and social value to the land. Through the effort and commitment shown by the States in their land-use planning, many of the former ex-mining lands have been put into proper economic and social use such as: ● ● ● ● ● ● Housing and settlement programmes Industrial estate development Agriculture, aquaculture and animal husbandry Tourism and recreation Higher learning institutions Overall, it is estimated that the total area of former mining land in the whole of Malaysia is about 127,550 hectares where around 60% (84,950 hectares) has been rehabilitated. Research has also been carried out by several Government agencies such as Malaysian Agricultural Research and Development Institute (Mardi), Forest Research Institute of Malaysia (Frim) and Minerals Research Centre (of the Department of Minerals and Geoscience) on the rehabilitation of ● ● Former mining land may be used for agricultural purpose whereby a mixture of palm oil mill extract and empty fruit branch act as organic matter on the land Certain species of forest plants such as acacia mangium and acacia auriculiformis can be grown on former mining lands Old mining ponds may be used to grow vegetables fit for human consumption or rehabilitation of land disturbed by mining, as spelt out in the State Mineral Enactment, will feature prominently where economic, social and ecological values can be added to such areas. BEM REFERENCES (1) Shahar Effendi Abdullah Azizi (1993) A Review of the Environmental Recovery of Mining Impacts in Malaysia – Paper presented during the International Symposium on Environmental Recovery of Mining Impact, Pocos de Caldas, Minas Gerais, Brazil, November 1993 (2) Shahar Effendi. A.A. and Chin L.B, (1985) Advances in the Quality of the Malaysian Environment: Mining Industry – paper presented at the Seminar on Advances in the Quality of the Malaysian Environment, KL (1985) Conclusion In developing the mineral sector, the Malaysian Government is mindful of the need to protect the environment and to ensure continuous quality of life for future generations. The mineral industry will continue to become a vital contributor to Malaysia’s development. With specific reference to the upstream end of the industry, optimal management of its activities can be effected through the adoption and implementation of the principles of the National Mineral Policy in agreement with the attendant regulatory instruments, namely the Mineral Development Act 1994 and the respective State Mineral Enactments together with other related laws. In keeping with the principles of sustainable development, the requirement for the restoration and/ T H E I N G E N I E U R 11 (3) Shahar Effendi A.A. and Wan Mazlan W.M (1992) The Proposed Mineral Investment Condition in Malaysia – paper presented during the Expert Group Meeting on Organization of Mining Codes and Legislation in the ESCAP Region, Bangkok , March 1992 (4) Chu, L.H. , Mustapha M. L, and Mohd Zaim A. W (2005) Rehabilitation of Ex-Mining Lands: Moving Towards Sustainability – paper presented at the International Conference on Achieving Innovation and Best Practices in Urban Management, Ipoh, March 2005 (5) Chu, L.H.(2005) Sustainable Development of Mineral Resources – Relevance to the National Mineral Policy, 2005 cover feature Rezoning Of Ex-mining Land Towards Best Use cover feature Minerals Security – How Vulnerable Is The Construction Industry? By Zuhairi Abd Hamid, Executive Director, Construction Research Institute of Malaysia (CREAM), Construction Industry Development Board of Malaysia (CIDB), Joy Jacqueline Pereira, Senior Research Fellow, Institute for Environment and Development (LESTARI), Universiti Kebangsaan Malaysia, Suhaili Ismail, Principal Assistant Director for Industrial Relations, Minerals and Geoscience Department of Malaysia The construction industry plays an important role in helping the Malaysian Government achieve the status of a developed nation by the year 2020. The industry not only supplies the basic infrastructure that underpins all economic activity in the country, but also provides shelter for the population that would make Vision 2020 a reality. With the projected increase in population, the demand for housing is anticipated to be about 1,790,820 units between 1995 and 2020. This demand is expected to rise beyond 2020 (Chen 2000). The construction industry is the main consumer of non-renewable resources such as rock materials, minerals and metals (collectively termed construction minerals in this paper). Examples of construction minerals include rock materials (aggregates), sand and cement, which are used to make concrete structures; clay minerals and various lightweight aggregates that are used with concrete to make masonry and tile products; and metals such as iron (Fe), aluminium (Al) and copper (Cu) for steel and brass products as well as for plating purposes. Given the importance of construction minerals to the development of the country, any shortage in the supply of such minerals gives rise to serious concerns, not only among industry players but also the Government sector. Shortages inevitably result in increased costs to the industry, which then translates to the consumer, the Government who outsource infrastructure projects and house buyers. It is not surprising that such shortages are viewed as “a crisis”, which require (and rightly so) some form of Government intervention to immediately alleviate the situation. The construction industry has experienced such crises in the past. The most recent crisis relates to the shortage of sand in the State of Selangor (The Star May 23, 2006). Prior to this, in 2004, the crisis constituted nation-wide shortage of steel, which was estimated to cause the housing industry to a lost of RM 7.4 million a day in liquidated ascertained damages in the form of compensation for late delivery, had it not been addressed (NST July 24, 2004). Why is the construction industry vulnerable to such crises? What is the next crisis to be anticipated? Can such crisis be anticipated and mitigating measures taken to avert them altogether? In other words, can we reduce the vulnerability of the industry to such crises? The Construction Industry Development Board of Malaysia (CIDB) has sought to answer these fundamental questions through an on-going research project funded by CIDB’s research arm, the Construction Research Institute of Malaysia (CREAM). This paper articulates the need to ensure the security of supply of construction minerals in the context of sustainable development. This entails broadening the traditional definition of minerals security to encompass not only economic, but also social and environmental considerations. The national scenario is briefly outlined in terms of three issues, i.e. the current sand supply shortage, the possible future emergence of rock aggregate supply shortage and the challenges that these pose to the agenda on Industrialised Building Systems (IBS) spearheaded by CIDB. This is followed by a brief description of the Minerals Security Initiative, funded by CREAM and coordinated by the Institute for Environment and Development (LESTARI) of Universiti Kebangsaan Malaysia, in conjunction with the Minerals and Geoscience Department of Malaysia (JMG), which aims to address these issues. T H E I N G E N I E U R 12 economic security, to take into account social and environmental elements that affect security. Thus, minerals security relates to the supply of minerals with respect to its availability and production, which are influenced by economic, social and environmental elements as well as political stability. This is particularly true with respect to the majority of construction minerals, which are intricately associated with economic, social and environmental elements throughout their lifecycle, from extraction, production, and utilisation to final disposal. For example, construction aggregate resources may be sterilised due to urban expansion, resulting in a shortage of such materials. This situation could be further compounded by closure of quarries in urban areas due to health, safety and environmental considerations. Similarly, banning of sand dredging along coastal areas due to environmental considerations could threaten the continuous availability of sand if such areas are the primary resource for sand. Clearly, in such situations, trade-offs have to be made taking into account, economic, social and environmental considerations. Therefore, in ensuring the security of construction minerals, all these considerations have to be factored in. THE NATIONAL SCENARIO There are many issues that can emerge as a result of ad hoc policy making, which is partly due to lack of long-term planning, gaps in information and inadequate emphasis on minerals security. In many cases, T H E I N G E N I E U R 13 the issues remain unresolved and keep recurring periodically. Three issues are highlighted below to illustrate the need for long-term planning to ensure minerals security. The first pertains to the current crisis on sand shortage, the second regarding an emerging issue related to rock aggregates and the third on the long-term vulnerability of the construction industry, in particular for (Industrialsed Building System), due to lack of security in the supply of minerals, particularly with respect to construction minerals of bulk commodity. Sand Shortage – A Periodic Crisis In 2004, it was reported that problems related to illegal sand mining were increasingly common due to shortage of legal sand sources, resulting in water pollution and damage to ecosystem. The State authorities responded over time with strict enforcement and issuance of a single permit for extraction. Banning of sand dredging along coastal areas was also reported to be prevalent (NST Sept 22, 2004; NST Jun 14, 2004; NST Jun 7, 2004; NST March 3, 2004). Clearly, the continuous supply of sand and accessibility to sand resources were already under threat. However, the issue seemed to be resolved until recently, where it loomed to crisis proportions, when the price of sand escalated to RM 40 per tonne, from its usual RM15 - RM18 per tonne, putting to risk implementation of infrastructure projects under the Ninth Malaysia Plan (The Star May 23, 2006; Leong 2006). The current crisis is creating a negative impact on the construction sector and related manufacturing companies. Some analysts believe that the shortage is artificial, as “how could Kuala Lumpur and Selangor run out of sand?” The shortage is attributed to the monopoly of supply and the increasing cost of transportation due to the recent diesel hike. Others are of the opinion that sand is indeed a depleting resource in Selangor because of its sterilisation due to the rapid expansion of built-up areas. The State has responded by invoking inter-State cover feature M inerals security traditionally relates to the supply of minerals with respect to its availability and production, which are intricately associated with economic elements and political stability. Much work has been done on the security of mineral supplies covering aspects such as the development of mineral security indices, security of access to markets, analyses of lifetime of reserves, impacts of strategic stockpile disposal programmes, and total material flows, among others (Ray 1984; Anderson 1988; Wilburn and Goonan 1998; Harker and Lutz 1990; Calaway and van Rensburg 2002; Pereira 2000). During the Cold War, minerals security was of great concern and strategic minerals were stockpiled to mitigate the threat of disruption to imported supplies. Government intervention in the minerals sector gradually ceased with the ending of the Cold War in the 1990s. The onset of market globalisation saw countries such as the United States, United Kingdom and Japan embarking on policies to reduce their stockpiles (Humphreys 1995). Mineral production is now considered a private sector activity and the market largely dictates matters related to minerals supply. Thus, the issue of minerals security is assumed to be of lesser importance. However, this assumption has been questioned by some quarters in developed countries particularly as the service sector of post-industrial economies still require construction minerals for their infrastructure. This is especially true for construction minerals of bulk commodity, where importing is not an option because of transport costs (Humphreys, 1995). Furthermore, the increasing importance given to sustainable development in international, regional and national agendas requires mineral policies that take into account social and environmental elements, in addition to supply and economic considerations. In this context, the definition of minerals security needs to be broadened from the narrow perspective of simple supply and cover feature sand transfer and encouraging private landowners to conduct sand mining on their plots. This is to counter the lack of State-owned land that could be used as sand mines. These measures may serve to address the current crisis but may prove to be unsustainable in the long-term as many questions remain unanswered. Will potential sand mine operators be required to practice strict environmental guidelines and will they be regulated by either the Department of Environment or JMG? What of the cumulative downstream environmental impact of having many sand mines on private land in the state? Who bears the costs – the mine operators though environmental management plans or the public when clean-up is required? What of postclosure rehabilitation? What about alternative sources of sand? In many countries, the supply of sand is derived from both primary sources and secondary recycled materials. In Netherlands, sand recycling commenced in the early 1990s in response to the growing volume of waste and scarcity of landfills to received the waste. A strategic master plan was developed to initiate a network for sand recycling and create new value-added industrial clusters (Barros et al. 1998). Such effort requires investment into research and development (R&D), to ensure that the recycled product meets industry specifications. To a great extent, such R&D activities are funded by the private sector, given the fact that the market dictates mineral security matters. Is the market in Malaysia mature enough to take on this responsibility? R&D on recycled construction material is already on-going in some local universities. Perhaps, what is needed is synergy between regulators of the construction industry, mineral research institutions, universities and the private sector to enhance ongoing research work and create the appropriate climate for introducing nation-wide use of substitute materials for sand, from secondary recycled sources. Aggregate Shortage – An Emerging Issue The Malay Peninsula is perceived to be rich in aggregate resources because of the tracts of granitic rocks that form the Main Range, the central backbone of the country (Figure 1). A great proportion of the Main Range comprises protected forest reserves, rendering the resources inaccessible for exploitation. At the state level, Selangor is also perceived to be rich in potential for aggregate resources, having access to the south western section of the Main Range (Figure 2). However, the reality is that only 6% of the total land area in the state has been identified as high potential areas for aggregate resources (GoS 1999). A large proportion of this high potential area is already inaccessible due to development of built-up areas to support the increasing population and economic activities. Such development activities have also encroached into existing quarry sites, forcing their closure. At the basinal level, a study was conducted at the Langat Basin, which is the principle source of aggregates consumed in the Klang Valley (Pereira 2004; Pereira and Komoo 2003). The study reveals that that landuse change in the Langat Basin has changed dramatically between 1974 and 1998 (Table 1). The most Figure 2: Distribution of granitic rocks that represent the southwestern section of the Main Range and quarry locations in Selangor. Modified after GoS 1999. Figure 1: Distribution of granitic rocks in Peninsular Malaysia. Source: Minerals and Geosciences Department of Malaysia. T H E I N G E N I E U R 14 Landuse Built-up area Forest Water Body Agriculture-based TOTAL 1974 3 53 4 40 100 dramatic change has been in the increase of built-up areas, from 3% to 15% of the total land area, from 1981 to 1998. Unfortunately, the expansion of built-up areas has been focused on the high potential area for rock aggregates within the Basin. Only 31% of the high potential area in the Basin is now available for future exploration and exploitation. All the other areas with high potential are either sterilised or unavailable for exploration and exploitation. Should the annual rate of aggregate resource sterilisation remain at about 10%, as it was between 1981 and 1998, it is estimated that total sterilisation of aggregate resources within the Langat Basin would occur within the next 15 years, unless mitigating measures are taken immediately. The increasing calls for closure of quarries in the Basin due to health, safety and environmental considerations is further compounding the situation on long-term security for supply of rock aggregates. One security issue that relates to construction minerals in the context of rock aggregates would relate to the need to provide infrastructure to support activity in the Klang Valley and the Multimedia Supercorridor. Another issue relates to the goals of the Selangor State Government to maintain a squatter free state, which necessitates affordable housing for its increasing population. Rock aggregates are bulk commodities where transport costs are a major factor. Generally, transportation of rock aggregates is considered to be not economically feasible beyond a radius of 50 km. It is more practical in future if IBS components such as beams, columns and walls are manufactured near the source and transported to construction sites as a 1981 3 52 4 41 100 1995 13 50 4 33 100 1998 15 50 4 31 100 finished product ready for assembly. This will reduce the transportation costs and double handling of aggregates i.e. transportation and batching for construction purposes. The supply of rock aggregates in Selangor is under threat because of land-use practices that makes the resource unavailable, particularly in urban areas. Measures should be taken now to ensure that the construction industry does not become vulnerable to supply shortage problems in the future. This is particularly pertinent in view of the national agenda on IBS, which would require careful rationalisation on the location of aggregate sources, production plants and the intended consumers. One measure would be to identify and protect areas that serve as important rock aggregate resources as mineral landbanks. Mineral landbanks refers to sites with substantial reserves of specific minerals or rock materials that can be extracted for future use. The landbanks should be maintained for mineral development to sustain future physical development in Selangor. In addition, buffer zones should also be identified around existing quarries. This is to prevent the encroachment of development that would limit the expansion of existing quarries. Quarrying activities in such areas would require stringent environmental guidelines and control, as they would be located in sensitive hilly terrain. The delineation of mineral landbanks is possible under the Selangor State Policy on Environmentally Sensitive Areas (ESAs) that was officially launched on June 5, 1999 (GoS 1999, 2003). The Policy takes into account the importance of an area from the perspective of the implementing T H E I N G E N I E U R 15 Government agencies and the perspective of its major function in terms of providing life support systems, heritage value as well as risk associated with hazards. The management of ESAs incorporates the concept of conservation, optimisation of resource use and controlled development. Each agency in the State is now required to identify ESAs that are relevant to their sector, which could then be gazetted or managed based on the degree of sensitivity. In the case of construction minerals, the JMG now needs to identify and prioritise mineral landbanks to be recognised by the state as an ESA. A complete inventory of ESAs at the local level will be very useful for making decisions on applications for land use conversion or applications for planning permission, which are submitted routinely to state and local authorities. Another measure would be to introduce alternative sources of aggregate to substitute natural sources. This is a common response to reduce the amount of waste generated from the construction industry to improve environmental management. It also reduces the total tonnage of construction waste channelled to landfills as many landfills are closing due to scarcity of land, particularly in urban areas. Recycled construction aggregates are being widely used for low technology applications in many countries. Much research is on-going in assessing the technical viability of recycled concrete aggregates (RCA) obtained from construction and demolition projects, waste from natural stone industries (quarries) and other sources (Poon and Chan 2006; Tam et al. 2005; Almeida et al. 2005; Coleman et al. 2005; Nagataki et al. 2004; Topcu and Guncan 1995). Such work is also ongoing in many local universities. Industry wide application of RCA in Malaysia would require the involvement all players from Government, the private sector and academia to synergise and conduct complementary work encompassing R&D for testing technical viability, assessment of economical feasibility, and development of appropriate construction industry standards and cover feature Table 1: Landuse percentage of the high potential area for aggregates, which represents 35% of the Langat Basin, with an area of 2938 km2. Source: Pereira and Komoo 2003. cover feature establishment of an aggregate network, among others. Challenges for Industrialised Building Systems Industrialised Building Systems (IBS) has been touted as an efficient solution to meet this projected demand for housing. IBS refers to construction work where structural components are manufactured in a factory either on or off-site, to be transported and assembled into the desired building or infrastructure with minimal additional site works. The conventional method currently employed is labour intensive, utilises relatively more construction materials and props, takes a longer time to complete, and generates more waste. Notwithstanding this, it is not known how much waste reduction actually occurs, and how the waste from current conventional methods can be reused and recycled to form a new resource base for IBS, given a scenario where transformation to IBS in the country will take a period of time. There are many delays associated with the conventional system. Delays are one of the most significant sources of cost overruns. A study of factors contributing to cost control problems for IBS conducted in Malaysia revealed that the highest ranked external factor that influenced cost related to materials i.e. its price, availability and supply (Yoke et al. 2003). Among the primary factors that contribute to this include demand and supply imbalance, shortage of resources and poor waste management. Materials are also a major cost element for IBS as it contributes more than 50% of its overall cost. Developing countries are more vulnerable to fluctuations in material costs because they depend on imported material manufactured in other countries (Assaf et al. 1995, Yoke et al. 2003). Given this scenario, it is imperative that the availability and waste generated from materials based on construction mineral resources be given adequate emphasis. This is to ensure that successful transformation from conventional methods to IBS actually generates less waste that is channelled into landfills, whilst extending the supply chain based on optimum usage of local construction mineral resources. There is considerable need for improving the material supply situation; particularly to increase locally produced IBS, in line with the Government’s efforts to develop dynamic industrial clusters (GoM 2001). New value added activities using local construction minerals as well as enhancement of competence in IBS related areas should be identified by extending the supply chain in the construction sector. By strengthening capabilities to utilise new IBS technology based on locally available minerals, the construction sector will be more resilient and less vulnerable to unexpected fluctuations in materials costs. Thus, it is important to develop an inventory of construction minerals suitable for IBS and estimate its availability for the long term, well beyond 2020, to ensure sustainability of IBS clusters. In this regard, it is also critical to identify waste generated by both IBS and conventional methods, and conduct assessments on how to channel the waste from conventional methods to IBS systems (during the transition period from conventional methods to IBS). This is to ensure more recycling, and reduction of construction waste being disposed of in landfills and dumpsites. There is a great opportunity now to apply the “design for environment” (DFE) approach with a view to optimise mineral consumption and aim for zero waste in the future. At the moment, Sweden is considered the best in the world for IBS (Thanoon et al. 2003). The DFE approach in Sweden commenced with clear classification of all materials, to ensure its correct usage for construction. As a result there is practically no waste generated and the economic efficiency is very high. LOOKING AHEAD – AN INITIATIVE ON MINERALS SECURITY In January 2006, LESTARI embarked on the project entitled “Materials Security and Waste Management for IBS” funded by CREAM under the auspices of CIDB. The Project has three main objectives. The first is to identify and evaluate waste stream characteristics of IBS as compared to conventional methods. T H E I N G E N I E U R 16 The second objective is to assess the long-term availability of construction minerals for IBS and its relationship to supply and costs i.e. to determine minerals security for the industry. The third objective is to develop “design for environment’ (DFE) approaches in the construction industry as a tool to optimise construction mineral consumption and reduce wastage. The geographic focus of the project is the Klang Valley in particular, and Selangor in general. The principal partners for the Minerals Security Initiative of the Project are the JMG and its state office, JMG Selangor. In embarking on the Initiative, effort will be made to collaborate closely with the State Government of Selangor and all stakeholders involved in construction minerals, from its extraction, production and utilisation to final disposal. The Project will support the Construction Industry Master Plan (CIDB 2005) that emphasises integrating the construction industry and its value chain to enhance efficiency and improve productivity, and striving for environment friendly and sustainable construction processes and resource management. The focus will be on capacity building and policy advocacy through meetings and dialogues with Government agencies, at national, state and local levels as well as all relevant stakeholders. A one-stop source for information on construction minerals critical for IBS will be developed, which can be regularly updated. Under the custodianship of CIDB and JMG, this will support efforts to ensure minerals security in the construction industry. CONCLUDING REMARKS Minerals security in its broad definition has not been comprehensively studied in the country. Information of the availability of minerals is available at the JMG, which also regulates the extractive industries in part. The issuance of permission to extract minerals remains with the State. However, work is pending on prioritising construction mineral resources to meet the demands of development, and identifying these as mineral land banks for supporting development in and around urban and Pb2+ ions with crushed concrete fines. Journal of Hazardous Materials. B121 (2005), 203-213. REFERENCES Government of Selangor (GoS) 2003. Agenda 21 Selangor-Selangor’s Commitment to Sustainable Development. Town and Country Planning Department of Selangor, Shah Alam. Almeida, N., Branco, F. and Santos, J. R. 2005. Recycling of stone slurry in industrial activities: Application to concrete mixtures. Building and Environment Anderson, D.L. 1988. Implications of the Canada-USA free trade agreement for the Canadian minerals industry. Resource Policy. Vol. 14. No. 2, 121-134. Assaf, S.A., Al-Khalil M. and Al-Hazmi, M. 1995. Causes of Delay in Large Building Construction Projects. Journal of Management in Engineering, 11 (2), 45-50. Barros, A.I., Dekker, R. and Scholten, V. 1998. A two-level network for recycling sand: A case Study. European Journal of Operational Research, 110 (1998), 199214. Calaway, L. and van Rensburg, W.C.J. 2002. US strategic minerals: Policy options. Resources Policy. Vol. 8. No. 2, 97-108. Chen, E.L.L. 2000. An Overview of the Malaysian Property Market. Paper presented at the UPM Workshop on “Environment Friendly Township for Developing Countries”, Serdang, Malaysia. Coleman, N.J., Lee, E.W. and Slipper, I.J. 2005. Interaction of aqueous Cu2+, Zn2+ CIDB 2005. Final Release of Construction Industry Master Plan for Malaysia (2006-2015), Construction Industry Development Board of Malaysia (CIDB), Kuala Lumpur. Government of Malaysia (GoM) 2001. The Third Outline Perspective Plan 20012010. Economic Planning Unit, Kuala Lumpur. Government of Selangor (GoS) 1999. Strategi Pembangunan Mampan dan Agenda 21 Selangor: Kawasan Sensitif Alam Sekitar, Institut Alam Sekitar dan Pembangunan (LESTARI), Bangi. Harker, R.I and Lutz, T.M. 1990. Securities of mineral supplies. Resources Policy. Vol. 16. No. 2, 115-127. Humphreys, D. 1995. Whatever happened to security of supply? Minerals policy in the post-Cold War world. Resources Policy. Vol. 21. No. 2, 91-97. Leong, N. 2006. A sandy situation. Biz Week, The Star, May 27: 8. Nagataki, S., Gokce, A., Saeki, T. and Hisada, M. 2004. Assessment of recycling process induced damage sensitivity of recycled concrete aggregates. Cement and Concrete Research, 34 (2004), 965971. Pereira J.J. 2004. Ecosystem Health Indicators for Mineral Resource Management. In: A. Latiff, J.J. Pereira, A. Hezri Adnan and A.A. Aldrie (Editors) Indicators of Sustainable Development: Assessing Changes in Environmental Conditions, LESTARI Publishers, Kuala Lumpur. 183-198. Pereira, J.J. 2000. Mineral Resource Flows in the Langat Basin. In: Mohd Nordin Hj. Hasan (Ed.) Kesihatan Ekosistem Lembangan Langat - Prosiding T H E I N G E N I E U R 17 Simposium Penyelidikan Lembangan Langat [Langat Basin Ecosystem Health – Proceedings of the Research Symposium on Langat Basin]. Institute for Environment and Development (LESTARI), Bangi, 115-125. Pereira, J.J. and Ibrahim Komoo, 2003, Addressing Gaps in Ecosystem Health Assessment: The Case of Mineral Resources. In: D.J. Rapport, W.L. Lasley, D.E. Rolston, N.O. Nielsen, C.O. Qualset, and A.B. Damania (eds.) Managing for Healthy Ecosystems, Lewis Publishers, Boca Raton, Florida, 905-916. ** Poon, C.H. and Chan, D. 2006. Paving blocks made with recycled concrete aggregate and crushed clay brick. Construction and Building Materials, 20 (2006), 569-577. Ray, G.F. 1984. Mineral reserves: Projected lifetimes and security of supply. Resources Policy. Vol. 10, No. 2, 75-80. Tam, V.W.T., Gao, X.F. and Tam, C.M. 2005. Carbonation around near aggregate regions of old hardened concrete cement paste. Cement and Concrete Research, 35 (2005), 1180-1186. Thanoon, W.A.M., Lee, W.P., Mohd Razali A.K., Mohd Saleh Jaafar and Mohd S.S. 2003. The Experiences of Malaysia and Other Countries in IBS. In: Mohd Saleh Jaafar et al. (Editors) Proceedings of the International Conference on IBS, CIDB, Kuala Lumpur. 255-262. Topcu, I.B. and Guncan, N.F 1995. Using waste concrete as aggregate. Cement Concrete Research, Vol. 25. No. 7, 13851390. Wilburn, D.R. and Goonan, T.G. 1998. Aggregates from natural and recycled sources – economic assessments for construction applications. U.S. Geological Survey Circular 1176. U.S. Department of the Interior and U.S. Geological Survey. Yoke, L.L., Hassim S. and Kadir M.R.A. 2003. Factors Contributing to Cost Control Problems in Malaysian IBS Construction. In: Mohd Saleh Jaafar et al. (Editors) Proceedings of the International Conference on IBS, CIDB, Kuala Lumpur. 237-253. cover feature areas. A comprehensive master plan incorporating economic, social and environmental issues, which takes into account the needs of the producer (the extractive industry), consumer (construction industry and its customers) and custodian (State Governments) of construction minerals is required for long-tem management of construction minerals. This is because the issues involved are complex and multi-dimensional, requiring multi-stakeholder consultation and negotiation. In this context, the Minerals Security Initiative seeks to reduce the vulnerability of the construction industry with respect to construction minerals, to ensure that the IBS agenda in Malaysia is not compromised. BEM cover feature Minerals: Economic Benefits, Research Excellence And Sustainable Development By Prof. Madya Ir. Dr. Eric Goh, Head-AMQUEST RESEARCH, USM Engineering Campus, Universiti Sains Malaysia Minerals are acknowledged worldwide as the fundamental foundation towards the enhancement of any nation striving for developed and industrialised nation status. Malaysia is fortunate to be endowed with the existence of various mineral types in the country, which can definitely enrich the national economy and society. The Malaysian minerals industry has evolved from a primarily tin-producing nation to a diversified minerals resource industry, which can be classified broadly into three sub-sectors namely, the metallic, the non-metallic and the energy minerals sub-sectors. The metallic minerals predominant in Malaysia include gold, tin, bauxite, iron ore and rare earth minerals. The non-metallic minerals range from abundant resources of limestone, granite, marble, argillaceous (clay) materials, kaolin, silica sand, barites, mica to feldspar. The energy minerals comprise primarily of coal. Minerals are extracted from sites designated as mines or quarries. Owing to the Malaysian Government’s rapid industrial development programme, ‘Vision 2020’, the increasing demand for mineral products has greatly assisted towards the continuous success of various phases in Malaysia’s industrialisation programme namely in manufacturing and construction. Sustainable development in the context of the minerals sector is the aim to optimise the economic contribution derived from the industry to the well being of the present generation; whilst ensuring that the potential benefits of existing mineral reserves are also made available to future generations to meet their own needs for further national development. A great economic benefit thus exists for Malaysia in the sustainable development of the abundant Malaysian minerals industry towards continuous and systematic economic and industrial development of the nation. T H E I N G E N I E U R 18 L atest statistics presented during Budget 2005, from the recent Economic Report 2004/2005, indicate that economic remunerations based on contributions of the minerals resource industry towards the Gross Domestic Product (GDP) has gradually increased from RM16.7 billion in 2003 to RM17.5 billion in 2004; and is expected to increase further to over RM18.5 billion in the near future. This positive economic outlook is a financial bonus to the Government and society for further national development. The economic costs for the manufacturing of high-tech material, chemical, ceramic and other industrial products, complemented by impressive infrastructure development achievements, have been greatly reduced due to the existence of local mineral deposits. According to the Department of Minerals and Geosciences, Ministry of Environment and Natural Resources, 30 types of minerals exist in the country, which can definitely enrich cover feature the economy and society of Malaysia. Economic analysis of Malaysia’s overall mineral production figures, which includes non-metallic, metallic and energy-based minerals, indicates an overall increase in production over the years. It is anticipated that there will be an enormous increase in the demand of minerals by the manufacturing and construction industries, among others, for the eventual realisation of Malaysia towards industrialised nation status. A well-developed and vibrant minerals industry would be most beneficial to society and Malaysia to attain developed nation status by the year 2020. Innovations and Excellence in Minerals Research With globalisation and the implementation of the ASEAN FreeTrade Agreement (AFTA), the Malaysian minerals sector needs to surge forward quickly and sharpen its cutting-edge knowledge to stay competitive. Owing to the evolving trend of trade liberalisation, the urgency for innovative R&D programmes for the minerals industry is useful to keep pace with the challenges worldwide. The importance of a well-structured research and development (R&D) programme on minerals development should continuously be emphasised for further enhancement of the industry. Landmark research techniques and industrial practices are thus a necessity in view of the rapidly changing work environment of the minerals sector worldwide. Some of the major documented innovative minerals R&D concepts and outcomes towards the advancement of knowledge in minerals science and engineering, complemented by highlights of main achievements and their implications to Malaysia for the well being and enhancement of society, include: ● Collaborative Minerals Cluster Research The establishment of a Collaborative Minerals Cluster Research setup is the latest innovation for successful internationalisation of Collaborative Minerals Cluster Research Concept Malaysia’s minerals industry in this new era of globalisation and increased competition worldwide: a Malaysia’s first. Realising these goals require systematic, efficient and latest stateof-the-art techniques that also address the needs for implementation of environment friendly and safe site practices for efficient mineral development. This unique scheme of ‘Collaborative Minerals Cluster Research’ is the key to further sustainable development of the minerals sector. This new research concept, a management landmark T H E I N G E N I E U R 19 leap for research & development (R&D) in Malaysia, is very much different from traditional methods of carrying out research. The traditional means of a single expert carrying out all research projects in the industry in all fields of specialisations is considered to be not only impractical but also disastrous with respect to the economics in project execution. Multi-discipline research is a norm today. Thus a single specialist cannot handle all the research and problem solving to cater to all the needs of the industry. Benefits of cluster cover feature research include the importance of access to the latest in innovation techniques, knowledge, and knowhow. In this new economic era of globalisation, the industry with the edge is one, which looks for new ideas and talent, cutting-edge technology, highly skilled labour staff, effective research and development facilities, and efficient research leaders able to champion the needs of the industry. The aim of cluster research is that it should be ‘service-centred’ and thus should cater specifically to the needs of the industry. The primary benefits of cluster research to the mineral industry are: ● ● ● ● Cost-savings, since cluster research concept is a ‘One-Stop Problem Solving Centre’ for the industry and thus a win-win situation for all interested parties, including consultants, Innovative industrial R&D techniques since projects are multi-discipline in nature, Extensive research results expected for industry since experts are from various specialisations; and Chance to grow together nationally and internationally with further development of this innovative research cluster for national development. Research clusters are a useful way to link the needs of the Government, industry, academia and other research organisations locally and worldwide via smart partnerships with the primary aim of further thriving economic development. The cluster research approach includes forging links between different emerging scientific and engineering disciplines which will eventually lead to the development and submission of multi-disciplinary research proposals exploring various novel research themes within the individual research programme’s lifetime. The Malaysian mineral industry will be the pioneer benefactor from this new unique research and problem-solving concept. Complementary benefits of cluster research include the importance of access to the latest knowledge in various multi-discipline technology and practices. ● Mine Site Rehabilitation Research Environmental issues continue to T H E I N G E N I E U R 20 be an important component of the international political agenda. World leaders acknowledge that accountability is necessary for environmental-friendly industrial development. With increased public awareness on the need for environmental protection, modern industrial practices must ensure that higher standards of environmental assessment and protection are implemented. Establishing a useful environmental management programme in mine site land rehabilitation is a significant contribution to environmental accountability as Malaysia progresses towards greater industrialisation. Efficient engineering design and systematic economic evaluation of mine sites for site rehabilitation are required in maintaining the expected standards of environmental compliance. There is thus a need to increase the base of knowledge for efficient planning in the systematic and progressive rehabilitation of current and future mine sites. Research studies carried out noted that some of the success stories of effective post-rehabilitated mine site projects in Malaysia include that at the Mines Wonderland (Selangor), the sensing and GIS tools in the monitoring and evaluating of temporal change and the modelling of potential sites for the sustainable development of future land use. Studies on the integration of remote sensing and GIS, which can identify and quantify the land cover classes in the area under investigation, is a success since results from cross validation analyses indicate that the model developed is consistent and applicable for future planning and design of potential ex-mineral development sites. levels of safety. The ability to accurately predict the potential for erosion will benefit any Government agency, company and the community when carrying out new development projects. The reliability-based landscape design monographs developed are useful tools for management to decide on the most economic method for an effective and economic landscape design with minimum soil erosion at site. Soil Erosion Reliability-based Engineering Design Owing to Malaysia’s rapid industrial development programme, Vision 2020, there is continuous high demand for minerals from t h e manufacturing, petroleum, construction, ceramic, glass and environmental management industries. With escalating production costs, keen competitiveness of the minerals industry worldwide complemented by the necessity for the Malaysian minerals industry to attain even higher profits there is thus an urgent need to seek an efficient and reliable statistical method for cost optimisation and reliability assessment in the economic evaluation of potential mineral deposits. Geostatistics, an efficient sampling evaluation technique, can assist to increase the reliability and optimise the costs for economic mineral evaluation and thus the eventual success of any mineral production project. Improved confidence levels obtained using geostatistics assists in decreasing the design, planning and development of economic risks of mineral deposit production. Geostatistics is defined as the application of the theory of regionalised variables to the study of spatial phenomena. The essence of this theory is the explicit use of the auto-correlation of the information from the data collected in the field. Ordinary statistics are usually concerned only with the values of the samples. Geostatistical techniques, however, take into account both the values of the samples and the positions from where the samples were collected. The geostatistical ● The applicability of reliabilitybased environmental design in engineered landscape profile management for unstable engineered landscapes is the focus of concern both by the industry, environmental legislative agencies and members of the public. This is due to the need to increase the reliability of erosion prediction and in the minimisation of mitigation and repair costs of topographic profiles against erosion failures. Re-engineered landscape profiles may be stable at the end of construction, but they can deteriorate over time. Engineering design of reshaped landscapes seeks to reduce the potential for such erosion damage through correct selection of an initial stable landform scheme. The design of reshaped landscapes must also conform to the specifications of evolving legislation so as to ensure the long-term stability of designed landscapes or hillside profiles. The ability to assess the potential for erosion at a site will assist in the design of a stable final landscape profile. Inadequate control of erosion could result in soil loss at site and also cause siltation problems beyond the perimeters of the re-engineered site. Erosion prediction models, however, contain uncertainty due to the variability of the model inputs and uncertainty in the models themselves. The main aim of efficient and economic reliability-based environmental design is the quantification of the performance of an engineered structure at specific T H E I N G E N I E U R 21 ● Geostatistical Mineral Economics Research cover feature Sunway Lagoon (Petaling Jaya) and the 300-hectare 27-hole golf resort at Clearwater Sanctuary (Perak). In the past, the land rehabilitation phase was too often a task considered only at the end of mineral development and not during the mine planning and production phase. Rehabilitation plans need to be drawn up in the initial design phases with the rehabilitation process as an integral part of any mining project. The rehabilitation phase could influence the future development and potential use of the mineral development site. The determination of the optimum design variables for systematic environment management of mine sites is essential for efficient mineral development operations which will eventually assist in minimising costs in the long term. The selective placement of disturbed soils will significantly reduce the overall costs in the final phase of the landscape reshaping process and also improve the erosion control and water quality management of the site. This will assist in improving efficiency through competent usage of equipment and reducing earthmoving costs. Evolving environmental legislation requires an improvement of existing land rehabilitation management practices at mineral sites. Existing land use is continuously changing under the influence of human activities and natural catastrophes that leave an impact on the ecosystem of the site. This impact has the potential to significantly affect the conservation balance and sustainability of a safe environment. It is therefore important to know the distribution of land cover and its potential economic use for further planning and national development. Recently, remote sensing and Geographic Information System (GIS) have become important tools for the monitoring, evaluating and modelling of environmental changes. The spatial data from remote sensing can be analysed using sophisticated GIS software systems. These technologies provide faster and more efficient acquisition of the spatial information such as land cover and continuous changes of land usage. Research for ex-mine sites incorporates the integrated application of remote cover feature indicate that a reduction in the number of samples collected during the exploration/sampling phase, while still providing an acceptable accuracy for site analysis of mineral deposits, would definitely bring tremendous saving to any mineral industry worldwide. Sustainable Development of Malaysia’s Minerals Industry – Strategic Directions Some of the significant strategic directions proposed for efficient sustainable development of Malaysia’s minerals sector are that: ● ● information analytical techniques are useful whenever economic grade evaluation needs to be improved due to sample values being affected by their locations and the relationships of the neighbouring samples. The objective of economic evaluation of minerals is to try to obtain estimates as close as possible to the real/actual grade of the site and the creation of models to predict the mineral resource trends at the area under study. Geostatistics is based on good information evaluation techniques with the aim that the estimates produced for the economic assessment of mineral deposits are unbiased and have a minimum estimation error. Geostatistics can also assist in deposit model development through the verification, analysis of data collected and grade modelling in areas where field sampling data could not be collected. An accurate map produced from the deposit model developed for the respective sites could be used for prediction and project planning. Cost savings may be realised because the overall sampling exercise need not be carried out again at the adjacent sites. Optimisation of sampling practices is one of the prime interests of any mineral industry worldwide and is a good example of the practical application of geostatistics. Sampling is critical in the determination of the value of a variable at site. Optimisation of sampling grids would be of benefit to any industry involved in data collection. The results obtained from sampling would subsequently affect the design, planning and outcome of any proposed mineral development project. Benefits in the application of geostatistics for optimisation of sampling practices include; if the sampling intervals are: ● ● Too far apart, serious loss of accuracy in the evaluation of the mineral deposits may occur; Very close, sampling/evaluation costs will increase substantially resulting in unnecessary loss in earnings to the overall mineral development project. The accuracy required for the information analytical phase might have been sufficient with wider-spaced sampling intervals. The aim in this optimisation research is to obtain the number of samples and select the grid pattern for mineral deposit evaluation corresponding to an acceptable confidence limit. Case studies under this research were carried out in Indonesia and Malaysia to test the applicability of geostatistics for optimising the sampling pattern. These case studies T H E I N G E N I E U R 22 ● ● ● The minerals sector should be designated as a ‘Promoted Industry’ under the Promotion of Investments Act to attract more foreign investments; Government should offer topdown priority research grants specifically aimed to strengthen existing established national minerals research institutions in carrying out further innovative R&D programmes towards knowledge enhancement and internationalisation of the Malaysian minerals industry; Mineral-based companies should be given a substantial tax deduction on eligible expenditure incurred in R&D activities to further strengthen their commitment towards reengineering existing minerals production technology, work and marketing practices; For eventual success of Malaysia’s industrialisation programme, the needs of the minerals sector should be pro-actively supported and given top-priority towards further progress by Federal and State Government agencies, corporate industry leaders and society; A world-class R&D industryfriendly testing and certification facilities should be created for the minerals sector to attract all investors and experts to set up base here; with the aim to make Malaysia the regional hub for knowledge and minerals expertise towards successful management of any potential minerals development project. BEM engineering & law Amending Standard Forms Of Construction Contracts – Curing Or Causing Problems?* By Ir. Harbans Singh K.S, B.E (Mech)S’pore, P.E, C.Eng, LLB(Hons)London, CLP, DipICArb I n a typical engineering/construction project, once the contractual arrangement and the contract procurement method have been settled, the next step entails the determination of issues pertaining to the terms of is the preferred legal frame work that is intended to form the basis of the agreement between the parties. This is usually achieved through the employment of forms of contract which may be any of the types listed hereafter; namely standard forms of contract, modified standard forms of contract, or ‘ad hoc’ or ‘bespoke’ forms of contract. Whilst standard forms still form the bulk of all engineering construction contracts let out, 1 there is a growing preference by the larger employers especially in the private sector to utilise ‘modified or ‘ad hoc’ forms. The latter also seem to prevail in the sub-contracting and material supply fields, perhaps due to the unavailability of any standard forms covering these categories of contracts on the local scene. of projects. They are preferable to specially drafted contracts because they are intended to be comprehensive and avoid most of the pitfalls which surround relations in the building industry……3 From the above-mentioned definitions, the following characteristics can be identified vis-à-vis standard forms of contract: ● These are in a printed form and published by an authoritative body of the industry, which body is recognised by the contracting parties; ● The forms set out the terms or conditions on which the contract between the parties are to be carried out; ● The terms or conditions are deemed to be agreed and are not subject to further negotiation and/or amendment; and ● The terms or conditions are generally suitable for a wide range of common projects or works. STANDARD FORMS OF CONTRACT Definition/Meaning Types Two definitions worth considering so as to appreciate the ambit of this phrase are to the following effect: The two major kinds of standard forms of contract employed in the industry were identified as herebelow by Lord Diplock 4 ● Contracts (1) which set out terms on which mercantile transactions of common occurrence are to be carried out………… (2) Type I: * Paper presented at the 8th Surveyors’ Congress, 14 June 2006, at Hotel Istana Kuala Lumpur See Construction Contracts: Towards A New Relationship by Barbara Colledge at P.232 ‘A Dictionary of Law (2nd Edn) by L.B Curzon at P.34 ‘An Engineering Contract Dictionary by Vincent Powell-Smith at P.536 In Schroeder Music Publishing Co. V Macaulay (1974) 1 WLR 1308 which are exemplified by the “ticket cases” of the nineteenth century………………… …… the terms of which were not the subject of negotiations between the parties to them: Schroeder Music Publishing Co. v Macaulay (1974)1WLR1308 …2 ● ● A printed form of contract containing standard conditions which are applicable (or can be made applicable by the use of alternatives) to a wide range 1. 2. 3. 4. T H E I N G E N I E U R 24 Forms where ‘the standard clauses…..have been settled over the years by negotiation by representatives of the commercial interests involved and have been widely not only legalities but also mundane administrative issues to ensure that both parties are able to discharge and can actually discharge their side of the bargain through full performance. Forms where ‘the terms … have not been the subject of negotiation between the parties to it or approved by any organization representing the interests of the weaker party …. To be in a position to adopt this attitude towards a party desirous of entering into a contract to obtain goods or services provides a classic instance of superior bargaining power.’ ● The forms have been arrived at through a process of negotiation between the various sectors of the industry and as a result act as a compromise between the various powerful interest groups; ● They have been widely adopted because experience has shown that they facilitate the conduct of trade 6 and have addressed the common pitfalls and shortcomings; In practice Type II forms are encountered mainly in the public sector e.g. JKR Standard Forms or larger statutory bodies/employers such as Putrajaya Standard Forms. However the prevailing practice is to utilise Type I forms as far as possible, notable examples being the PAM Forms, CIDB Forms, etc. But it dispels the notion that to be tenable, standard forms have to be based on prior negotiation and approval by authorised bodies/organisations. ● The forms satisfy the equitable principle requiring that similar projects demand similar contracts 7; ● The standard forms allocate risks relatively fairly between the parties. Such equitable apportionment of risk obviates contractors from adding risk premiums and allowances and thereby leads to a fairer commercial transaction between the parties 8; Purpose ● Most such forms are time tested and practitioners are aware of their workability, limitations and drawbacks. This familiarity leads to administrative and cost efficiency and minimises possible claims and disputes; ● Over the years these forms have accumulated a body of case law and judicial pronouncements as to the interpretation of the various provisions and stipulations which leads to certainty in their implementation 9; and ● Employment of standard forms avoid the necessity of the parties indulging in a long winded and time wasting process of negotiating the relevant contents of the legal and commercial framework which they intend to put ● Type II: Before delving into issues such as the advantages, drawbacks and the varieties of standard forms in circulation, it is pertinent to look at the very purpose of using these forms. For the sake of brevity, these can be limited to the following main categories: 5 ● To provide the basic legal framework evidencing the legal relationship between the parties i.e. identifying the rights, obligations and duties, etc; ● To furnish a mechanism for regulating the conduct of the commercial relationship between the parties; ● To put in place the administrative procedures necessary to effect the legal and commercial relationship between the parties for achieving the purposes of contract; and ● To establish the ambit of the powers and duties of the contract administrators under the contract between the parties. Hence, as can be noted from the above summary, the purposes of the standard forms are multifold governing Advantages of Standard Forms Although it is not absolutely convincing to allude to the plus points of standard forms, it is nevertheless obvious that there are some apparent positive reasons justifying the use of such forms in preference to the other varieties. These can be summed up as herebelow: 5. 6. 7. 8. 9. See also ‘Construction Law in Singapore and Malaysia’ (2nd Edn.) by Robinson and Lavers at P.22 Per Lord Diplock in Schroeder Music Publishing Co. v Macaulay (1974) 1 WLR 1308 See ‘Construction Contracts Law and Management’(2nd End.) by Murdoch & Hughes at P107 Ibid. See ‘Construction Law in Singapore and Malaysia’(2nd End.) by Robinson and Lavers at P23 T H E I N G E N I E U R 25 engineering & law adopted because experience has shown that they facilitate the conduct of trade. Contracts of these kinds affect not only the actual parties to them but also others who may have a commercial interest in the transactions to which they relate as buyers or sellers….. If fairness or reasonableness were relevant to their enforceability, the fact that they are widely used by parties whose bargaining power is fairly matched would raise a strong presumption that their terms are fair and reasonable.’ engineering & law in place. An ‘off the shelf’/’ready made’ formula is available for the possible adoption by the parties. ● ● ● Drawbacks of Standard Forms ● Opponents of standard forms proffer a host of disadvantages inimical to the adoption of standard forms: the principal ones of which are appended herebelow: ● Standard forms contravene the very cornerstone of the law of contract i.e. the doctrine of freedom to contract. By imposing standard forms on the parties, these parties are prevented from freely deciding on the whatever terms and conditions that they deem fit to govern their legal and commercial relationship; ● Owing to the multitude and the varied nature of the contracts encountered in the engineering/construction industry it is a fallacy to have a standard form covering all eventualities. There is no way in which such a contract is able to cover all the various situations envisaged in the industry. Moreover, such forms rarely record the terms of the agreement between the parties accurately; ● In situations where such contracts have been used, these have been more likely due to possible ‘armtwisting’ or ‘economic’ duress rather than consensus between the parties. This is especially so in times of economic recession or a slowdown in the industry where employers usually have the ‘take it or leave it’ attitude; ● ● The belief that the standard forms fairly apportion risks between the parties is in reality a myth as the parties are rarely bargaining at arm’s length. Such forms are normally drafted by powerful interest groups inherently biased in their allocation of responsibility; and Most of the standard forms are drafted in legalese i.e. complex legal language beyond the comprehension of the parties and the normal contract administrators and requiring the input or the services of legal specialists in interpreting the contracts. Main Types 10 For a small country, Malaysia boasts quite a number of standard forms of contract governing the employercontractor as well as the employer-consultant relationships. This may not auger well for the industry as a whole since standard forms are being supplemented by an increasing number of ‘modified’ or ‘bespoke’ forms. This may also reflect on the extent of fragmentation of the industry. Nevertheless, it is obvious that the existing standard forms can be and have been categorised according to the following classification: Government/Public Sector Contracts 11; Private Sector Contracts; and Contracts of an international nature. In addition to the above, there are other so called ‘standard’ forms involving particular sectors of the industry or being published by specific employers such as Putrajaya Corporation, KLCC, Petronas, Tenaga Nasional Berhad, Telekom Malaysia Berhad and the like. Why The Need To Amend If the industry accepts standard forms per se as they are, then the very idea of undertaking any amendments whatsoever seems irrelevant. But this has not been the case. Not only individual employers have taken the cue in amending existing standard forms but so have institutions, a classic example being PAM which has in 1998 amended the 1969 standard forms but within the short span of seven years undertaken yet another overhaul. There must be compelling reasons for the above as it is obvious that each amendment exercise can have far reaching consequences on the industry itself. Other than justifying the said amendments on the need to address the drawbacks alluded to earlier in this paper, proponents of the said exercise proffer the following additional reasons: ● In view of the Government’s privatisation initiatives, the bulk of the work and consequently the associated risks are transferred to private employers who find the standard forms grossly deficient in the said risk allocation mechanism. Furthermore by the amendment process, such employers indirectly encourage contractors to transfer some of the risk onto their sub-contractors 12; ● Most standard forms are outdated, anachronistic and do not reflect the prevailing state of the industry, a classic example being the JKR/PWD Forms that were last amended in 1983 13; ● Through suitable amendments, the forms of contract reflect the contemporary legal position governing the parties’ rights, duties and obligations. In the process any lacuna is addressed and the courts’ interpretation of the provisions give effect to suitably; 10. Most of the local “standard forms’ are merely standard forms of the particular employer or institution only and not truly ‘standard’ industry forms. 11. Including those used by statutory or quasi-statutory bodies 12. Through the use of ‘Contingent Payment’ clauses 13. A similar label is attached to the IEM CE /89 Form which is an adaptation of the JKR Form 103A T H E I N G E N I E U R 26 ● Amendments may be necessary to reflect the particular objectives and political philosophy of a particular employer 14 or institution at the material time; - - Standard forms may fall out of tandem with contemporary practice on the international arena and may therefore lead to loss of business confidence 15 if retained in the unamended form; - ● ● Amendments may be necessitated by the particular requirements of third parties involved directly or indirectly in the contract 16 e.g. financiers, insurers, etc. who through such amendments attempt to protect their respective positions; and Main Provisions Generally Amended Variation Provisions As variations impact materially on the parties’ cost, time and quality of work obligations, such provisions are also prone to routine amendments; the notable examples entailing the following: Through suitable amendments, parties are able to best reflect their true bargain agreed upon, inter se, and ensure that is capable of being implemented within the ambit of the contemporary law. Some might argue that the reasons proffered as above for justifying the need for amending standard forms of contract are too general and as such may not be applicable to many situations encountered in practice. However, these do reflect the predominant view-point throughout a good cross-section of the industry itself and therefore forms an initial starting point for further discussion. In view of the varied and complexity of the industry itself and therefore the respective contracts involved, it suffices to say that there may exist other compelling reasons not listed above to justify the necessity, in particular cases, for necessary amendments to the prevailing standard forms in specific applications. But the discussion of such contracts is well beyond the ambit of his paper and should therefore be dealt with at a separate forum. - ● Payment Provisions Such provisions are likely to be amended to reflect the commercial agreement between the parties. More often than not this should mirror the agreement negotiated and reached between them. However, it may merely express a regime imposed by one party 17 on the other. The main amendments normally undertaken may encompass: The extent of variations permitted in terms of both scope and value; The powers of the respective parties vis-à-vis the ordering of variations; Procedure of the variation process especially effects of defaults 20; Formulae and/or mechanisms for the valuation of variations; Payment procedure and obligations e.g. use of ‘back-to-back’ provisions for sub-contractors, etc. Delay and Extension of Time Provisions. Another favourite area of contention during the contract implementation stage, various employers attempt to circumvent the seemingly ‘inflexible’ standard provisions by amending or revising the same to cater for: - On a general note, any term of a typical standard form of contract is susceptible to amendments as there is no legal bar to effecting the same. However, an analysis of the bulk of the amended standard forms in practice reveals that such amendments are predominately confined to the following main provisions: ● ● The application for payment procedure i.e. making the contractor’s application as a condition precedent to any payment certified; Provisions pertaining to ‘title’ in goods 18; The right to payment i.e. use of ‘contingent’ payment or ‘back-to-back’ payment formulae; Remedies for default of payment obligations 19; Third party inputs i.e. of the certifier, independent checkers, etc, Alternative payment mechanism e.g. ‘contra payment’, ‘barter’, etc. - Other options to be exercised by the employer 21 in lieu of mere extension of time e.g. power to order the contractor to accelerate works, etc.; Procedural matters e.g. making the contractors’ notification of the delay and application for extension of time, mandatory, etc.; 14. E.g the Government’s New Economic Policy 15. This may hamper the government’s efforts at attracting more foreign direct investments 16. This is especially so in privately funded contracts, turnkey contracts, etc. 17. Usually the dominant one. 18. To circumvent ‘Retention of Title’ or’ Romalpa’ clauses 19. Granting for example, right to interest, suspension of works, etc. 20. Excluding those categorized as ‘Invalid Omissions’. 21. Also includes the Main Contractor in the case of a Sub-Contract. T H E I N G E N I E U R 27 engineering & law ● engineering & law - - - ● The inclusion or exclusion of certain relevant events as grounds for the application e.g. omission of some neutral events from the express provisions, etc; Limiting the right of the contractor to claim extended preliminaries and/or direct loss and expense consequent to delay not attributable to the contractor; Circumventing the decision of Selvakumar v Thiagarajah vis-à-vis the recovery of LAD. and frequently make the situation worse by producing conflicting or contradictory clauses.” A similar sentiment is echoed by Cox & Clamp following effect: A troublesome and often a potentially litigious aspect of contract implementation, this has spawned a series of illustrious judgments which have been addressed in some standard forms but not the others. In the latter case, amendments and/or revisions are normally undertaken to cover; - ● Rights of the parties vis-à-vis suspension of works; Procedural conditions precedents pertaining to suspension and/or determination; Rights of the parties following the determination exercise 22; Rules governing mutual termination of the contract; Procedure and rights pertaining to termination/ determination without cause 23. There is an increasing trend towards non-standard agreements on commercial or larger contracts. Any such drafting should be entrusted to a lawyer with the appropriate specialist knowledge, and he or she should always be engaged directly by the client. Architects 26 without legal training and experience in such matters are strongly advised not to attempt even seemingly minor changes to standard wording or drafting of additional clauses which might make published documents non-standard.” Miscellaneous Provisions These encompass mainly provisions encompassing insurances, bonds, completion of works, defect rectification, conclusiveness of certificates, instructions, obligations of the parties under the contract, status of the retention sum, priority of documents, claims, dispute resolution, extinguishment of rights under the common law, etc.. From the above statements and the pronouncements in a litany of cases that have reached arbitral forums and the corridors of justice, perhaps it may useful to summarise the principal drawbacks and the problems that have ensued for such amendments of standard forms, these being; ● Such amendments rob the standard form of its principal characteristic and very selling point and in the process attract the application of the contra proferantum rule of interpretation. The end result is that the party undertaking the amendment loses the benefit of any doubt; ● More often than not, if improperly undertaken, amendments lead to unclarity, uncertainty and PITFALLS OF THE AMENDMENT PROCESS Much as amendments of standard forms may be desired, these have to carried out professionally and by competent draftspersons, lest they compromise the very purpose of the said amendments and destroy the substratum of the agreement between the parties. Murdoch & Hughes in their authoritative text entitled ‘Construction Contracts Law and Management’ have this to say on the issue in hand 24. “The prospect of drafting a contract from first principles for every project is too daunting to most in the industry. Many are tempted to undertake their own revisions and amendments to the standard forms to the “Bespoke amendments can easily impair the balance of the forms and the precise meaning of the contract conditions could be a matter for endless arguments between lawyers. There is also a practical point that if a contractor is asked to tender knowing that it is proposed to use a special or amended form of contract, his first action will be to pass it to his legal advisors for checking. The cost of this will then be reflected in his tender. It is sound advice to resist alteration and amendments wherever possible. The Latham Report recorded that “All parties in the construction process should be encouraged to use those standard forms without amendments”………… However, there may be instances where no standard form of building contract fits the client’s requirements and a specially drafted agreement is needed.” Suspension, Termination/Determination - 25 22. 23. 24. 25. Especially pertaining to payment, title in goods, etc. Also labeled ‘Termination/Determination By Convenience. (2nd Edn) at P110 See S. Cox & H. Clamp “Which Contract? Choosing The Appropriate Building Contract” (3rd End) at P12 & 13 26. Also Engineers, Quality Surveyors, etc. as applicable. T H E I N G E N I E U R 28 ● ● To sum up the discussion, perhaps Cox’s & Clamp’s advice as contained in the following extract 31 be imbued with the right spirit: Contractors 28 faced with such amendments find difficulty in accommodating them both price and time wise. A way out of this dilemma is to pad-up the pricing much to the detriment of the competitiveness; Bespoke or ad hoc amendments, if improperly carried out, blurs the various roles and obligations of the parties involved. Contract administrators and others involved in the implementation of the contract itself have no specific guidance as the precise meaning of the amended provisions is a matter of mere speculation and conjecture; ● One should take heed of Cox’s & Clamp’s timely reminder in that 29 ‘….. the basic rule is never to make amendments which might have unintended effects on other clauses and so upset the balance of the whole document…..’; and ● Statistics reveal that the end result of improperly amended standard forms is a preponderance of claims and disputes. As each party premises his claim on his own subjective interpretation of the material provision, seldom if ever can a middle ground be found. The ultimate redress for such a impasse is arbitration or litigation. It is not correct to say that all bespoke or ad hoc amendments suffer from the deficiencies as adumbrated here above. More likely than not are those improperly or unprofessionally carried out by any lay instead of legally trained draftspersons. As Murdoch & Hughes say 30: “…..The drafting of non-standard forms demands great skill and knowledge. There is extensive experience of contract drafting generally but little of it seems to filter through the construction industry. Indeed, some of the standard forms have prompted severe judicial criticism: one judge lamenting that such widely used form shall be so deviously drafted with what in parts can only be a calculated lack of forthright clarity, another referring to the farago of obscurities….” 27. Though through some provisions, employers attempt to pass the risk of such matter onto the shoulders of the contractor. 28. Includes where relevant sub-contractors, suppliers, etc. 29. See Cox & H. Clamp “Which Contract? Choosing The Appropriate Building Contract’ (3rd End) at P.50 30. “Construction Contracts: Law & Management” (2nd End) at P.109 31 In “Which Contract? Choosing The Appropriate Building Contract”(3rd End) at P.50 “The Latham Report recommended that all parties in the construction process should be encouraged to use standard forms without amendment. Where there are exceptional reasons for such amendment, the architect should make sure that the client is aware of and accepts the risks. Amendments should be dealt with by his or her legal advisors. Again, there is the practical point that ad hoc alterations often lead to inflated tender figures as the contractor prices the risks” Summary It is obvious that standard forms do not cater for all the needs and all the players in the construction industry as the latter are so varied in terms of scope, content and nature. It is a mere starting point for parties to premise their respective agreements on. What is obvious is that there is a necessity to amend such forms to suit particular needs. But these should be done skillfully by competent professionals and even then in restrictive situations, failing which the consequential forms generated by such a process may indeed give rise to more problems instead of curing any existing ones. There is a plethora of case law testifying to the above assertion and it does not serve the industry to see the results of such amendments being vented out in arbitral forums and the corridors of justice. BEM REFERENCES ● Cox & Clamp ‘Which Contract? Choosing The Appropriate Building Contract’ (3 rd Edn) RIBA Enterprise. ● Curzon, LB ‘A Dictionary of Law’ (2 nd End) M&E Professional. ● Fenn & Gameson ‘Construction Conflict Management & Resolution’ E & FN Span. ● Harbans Singh K.S ‘Engineering & Construction Contract Management: Law & Principles’, Lexis Nexis. ● Murdoch & Hughes ‘Construction Contract Law & Management’, (2nd Edn) E & FN Span. ● Powell-Smith, V ‘An Engineering Contract Dictionary’, Blackwell. ● Robinson, Lavers, Tan & Chan ‘Construction Law in Singapore & Malaysia’ (2nd Edn) Butterworths. T H E I N G E N I E U R 29 engineering & law ambiguity 27. This impacts materially on the pricing and implementation of the ensuing contract; feature Internationalisation Of Malaysia’s Minerals Industry Via Effective Occupational Safety And Health By Prof. Madya Ir. Dr. Eric Goh, Head, AMQUEST RESEARCH, USM Engineering Campus, Universiti Sains Malaysia Chen Nyet Lin, Senior Manager, Kuang Rock Products ( IJM) and Hon. Secretary, Institute of Quarrying (Malaysia) Maimunah Khalid, General Manager, Operations, National Institute of Occupational Safety & Health The mineral development profession, for quarries and mines, has always been viewed as a challenging career worldwide due to the nature of the work, the complexity and the risks involved in getting the job done. Individual Malaysian quarries are generally sized at less than 50 hectares in area. Accidents associated with the minerals industry normally receive national or even international media coverage though there may be more accidents or fatalities reported in other industrial sectors. This prominent industry is acknowledged as having contributed much to the further enhancement of Malaysia’s national development and economy. The need for a wellstructured efficient occupational safety and health (OSH) programme in the minerals sector should thus be emphasised towards internationalisation of Malaysia’s minerals industry. The workforce of the minerals sector should be technically competent and also well conversant in safety and health skills to deal with the public and its international counterparts to progress in this knowledge-based (k-) economy era. Efficient occupational safety and health management practices implemented in Malaysia’s minerals sector have assisted in improving the safety records due to the actual reduction of accident and injury cases at site. Increased awareness of management and that of the site personnel towards safety in the industry, via systematic safety and health awareness courses, would be useful in further reducing the number of accidents in the minerals industry. T H E I N G E N I E U R 30 Causes of Accidents Productivity at a mineral development site will be affected should any accident occur. Mineral development sites should look into safer occupational safety and health practices, as another source of economic savings, since reducing accidents will increase profits. Company profits will increase when there is a decrease in downtime from hospitalisation, optimisation of working hours and also a reduction in compensation costs due to injuries. Inculcating a safety culture at a work site will certainly assist in reducing accidents. A large number of accidents is preventable if proper measures are carried out to disseminate safe working practices via regular educational programmes and practical refresher courses for all levels of management and staff in the minerals sector. Statistical trend of industrial accidents reported in the minerals sector is only 1% when compared to the total number of accident cases reported in the other major industrial sectors. Thus there has been a gradual decrease in accidents in the minerals industry in the past six years. This indicates that the selfregulatory concept of occupational safety and health practices by management in the mineral T H E I N G E N I E U R 31 development sector has greatly assisted in decreasing the accident rate at sites. Benefits of Systematic OSH Training The workforce of the 21st century needs to be educated and trained on the safety and health measures undertaken and the rationale behind the essential rules for the well being of each individual staff. The major benefit of smart partnership in OSH Training in this specialised field of Occupational Safety and Health is the further upgrading of skills to adapt to the ever-changing technology and management emphasis in the minerals industry. The minerals industry, though a key element in infrastructure national development, is a challenging environment to work in. Extra care thus needs to be undertaken by management to implement the appropriate planning, implement safe practices and ongoing monitoring of the quarry site to ensure that all quarry personnel are continuously safe and stay healthy throughout their working life in the industry. At times when management has implemented all safety measures at sites, accidents still do happen. Ignorance of the workforce of safety benefits that have been implemented needs to be feature P rofessionalism in occupational safety and health is defined as the status of competence, quality of work or level of training of any individual in the industry with respect to international safety and health standards. The minerals sector has to project an efficient and effective image locally and globally to achieve favourable acceptance by clients and the public in this new phase of industrialisation. Quality assurance is the ability of the industry in carrying out any task safely and efficiently in a healthy environment based on its expertise and skills. The economic payoff is beneficial since the Malaysian minerals industry can prepare itself early via systematic implementation of OSH awareness and training programmes to meet the global competition head-on in the new millennium. Other potential benefits of globalisation include the phenomenal growth in the industry via enhancing the mobility of investment capital and skilled workforce and professionals worldwide. The ready availability of world class mineral experts and workforce conversant in occupational safety and health matters would be a great advantage to Malaysia in that the human capital is easily mobilised overseas. Since the minerals industry is the backbone of further national industrial development, all professionals in the minerals industry should play a critical and pivotal role in further enhancing the occupational safety and health k-economy concept. The concept of professional development via systematic continuing education and training will assist the industry to be better prepared to meet the challenges of AFTA and the globalisation scenario worldwide in the 21st century. Studies carried out in the industry indicate that mineral professionals and personnel need to be not only technically competent but must also possess excellent occupational safety and health skills to effectively deal with personnel and society to remain competitive in the new era of globalisation. feature reducing accidents and complaints which will translate into benefits for the industry via increased productivity and economic returns. Qualities expected for Successful OSH Site Practices From personal experiences and frequent practical visits to the industry, locally and worldwide, it was observed that the prime qualities to supplement sound technical foundation that are expected of management and frontline operators in the industry include: Professional competency Professional competency is the ability to identify and solve industrial occupational safety and health problems based on sound innovative safe practices, modern engineering design/tools and hands-on experience. Continuing professional development, via education and training, is thus a necessity for enhancing professionalism in industrial occupational safety and health practices at the individual, company and industrial levels. ● addressed to overcome any misunderstanding when certain safety and health regulations are enforced at site. What is more significant is that: ‘The workforce should not only WORK SAFE but more importantly FEEL SAFE’. Systematic training for all levels of the workforce will assist the staff to fully appreciate the safety measures being undertaken at site and the corresponding actions of safe work site etiquette to minimise any avoidable accident or safety and health incidents. The minerals industry should thus be able to cope with new scenarios that include increasing awareness worldwide on the roles and responsibilities for ensuring that potential accidents at work sites are identified, assessed and controlled. The enhanced skills of the workforce, via improved safety and health awareness, will increase productivity, optimise efficiency, which all adds up to increased profits combined with a healthy, confident and appreciative workforce. Corporate interests in continuous professional development (CPD) which aims to further upgrade personnel education and training in the implementation of cutting-edge occupational safety and health practices are among the greatest investment the industry can make. If the minerals industry wish to remain competitive, the sector has to sincerely invest in promoting planned systematic education and training schemes to further enhance professional excellence in occupational safety and health matters, initially within the Asian region, followed by the Asia-Pacific countries; and hopefully assist other world economies within the next decade. Implementation of efficient safe practices would also be a strong public relations (PR) exercise to show the world that the Malaysian minerals industry is a safe and caring industry looking after the concerns of its experienced workforce. Systematic OSH Training will definitely assist in T H E I N G E N I E U R 32 Effective communication skills The prime quality expected by the industry is effective and confident communication capability in confidently imparting systematic industrial occupational safety and ● health practices. Invaluable experiences stored in the brain would not be helpful to the minerals industry unless management can express his/ her ideas clearly to the workforce at site. Senior management thus need to present their ideas clearly so that practical economic executive decisions can be made based on sound OSH principles. The importance of effective technical communications is also evident when instructing staff on safety procedures that could save lives. Effective communication is a two-way process; the front-line operators should also be able to convey any potential unsafe practices to management. All proposals should be looked into in-depth to minimise or eradicate any probable safety and health risks before implementation of any new work schedules. Practically skilled Professionals have to be directly involved with hands-on scenarios for practical problem solving in the industry thus providing the opportunity to interact the existing academic knowledge with real-life occupational safety and health situations. Industrial experience is a necessity for efficient industrial development of the minerals industry taking into consideration OSH factors. Regular OSH training courses for personnel will assist in further reinforcing their practical skills and the confidence of the staff in carrying out their duties. ● Ethics Humanistic skills should provide the industry with balanced ethical and moral standards when carrying out any OSH job so that the outcome is acceptable to society and can enhance the Malaysian work image overseas and to visiting international experts. Site personnel have to be conscious of all the respective safety and health aspects in project planning to minimise any foreseeable negative impact on the workforce. ● T H E I N G E N I E U R 33 OSH Awareness Programmes in the Minerals Sector The most critical factor in improving industrial efficiency is selfregulated quality of industrial safety and health management. One of the major means for further enhancement of occupational safety and health standards in the minerals industry is enhanced education and training. feature Ability to adapt globally With globalisation becoming a reality, the minerals sector workforce needs further re-education and training to enable them to adapt to the borderless world and the rapid expanding knowledge-based society of the k-economy. To meet the challenges of globalisation, industrial personnel have to adapt to various safe occupational safety and health working cultures practised in different countries worldwide. An experienced workforce supplemented with knowledge on good safety and health practices will be in great demand when implementing multi-national projects overseas. Smart partnership is thus the important key to systematic OSH training for the Malaysian minerals industry to be fully prepared to confidently meet the challenges of an industrialised nation via Vision 2020 and the potential prospects of investment projects worldwide. ● feature The content of any proposed OSH training programmes should be tailored specially to the needs of the individual personnel taking into considerations the OSH responsibilities expected according to their respective designation. Some of the proposed topics to be covered in any planned OSH course for the minerals sector which needs to conform to the requirements of OSHA 1994; and designed specially for the benefit of the minerals industry include: ● ● ● Education is the means to provide personnel with the knowledge and skills to handle the unpredictable and the unknown. Training, moreover, equips people for problem solving in a predictable scenario. Training is a must for all levels of the workforce in the quarrying industry. However, the education required for each category increases as they progress higher on the management ladder coupled with added responsibilities. In order to strive for professional excellence the industry has to ensure that all personnel attend the respective OSH courses tailored to the needs of the knowledge expected of the respective personnel. The industry should give priority to improving the well being of its employees in OSH matters comparable to its attention to controlling costs and improving production. Minerals sector staff, of all positions, should initially receive sufficient fundamentals of safe practices expected in the industry as technical foundation upon appointment to ensure that the standards of the overall personnel workforce are maintained. However, the OSH knowledge expected of each personnel can be developed gradually, by learning new skills, to further assist in undertaking more demanding OSH roles with greater management responsibilities. Management personnel in the industry must ensure that all activities carried out daily comply with best practices and complies with existing industrial occupational safety and health requirements of any nation. For safety standards to be further improved the mineral resource industry likewise should be prepared to allow its employees access to the best education and training available to achieve higherquality error-free production supplemented with high safety records. A healthy workforce reduces medical costs, downtime and greatly improves productivity. ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● T H E I N G E N I E U R 34 Occupational Safety and Health Legislation, Occupational Safety and Health Management, Site Occupational Safety and Health Responsibilities, Occupational Safety and Health aspects, Safe Work Procedures (SWP), Accident Reporting and Investigation Procedures, Hazard Identification, Classification, Reporting and Control, Risk Assessment Process, Effective Safety Promotion (ESP) Guidelines, Workplace Audits, Safe Procedures (during drilling, blasting, compressed air, stockpiles), Safety in usage of power supply, cable connections and electrical tools, Transportation and Conveyor Safety, Safe Usage of Machinery (examples: excavators, lorries, plant maintenance), Personal Protective Equipment (PPEs), Fire Management & Control, Accident Investigation and Reporting, Statutory Notification to relevant authorities (DOSH, DOE, Fire Department), Emergency Preparedness and Response Plan, and First Aid Site Requirements and Implementation. The k-economy scenario, which started in 2001, has resulted in many long-term ramifications worldwide. In this new millennium, training and knowledge is the key to further industrial development. The world and Malaysia need more mineral products to further raise the standards of the world community. The remarkable progress in Malaysia shows that there is an expected further escalating demand for mineral products in the near future. With the extractive industry being a key foundation of national infrastructure development, it is therefore imperative that we appreciate the importance of professionalism in occupational safety and health aspects for further industrial development. The reputation of the industry and the value of each mineral personnel can be upgraded via mastering the latest occupational safety and health practices and to unlock its full potential for projecting the industry as a safe and caring industry to society. Client satisfaction, a major criterion for further growth in the minerals industry, can be further enhanced via proven safe working track records. The overall benefit to the minerals industry via effective OSH awareness is improved efficiency and productivity, better workplace rapport and higher cost savings due to the minimisation of accidents, staff injury, hospitalisation and downtime. The ability to achieve ‘Vision 2020 Developed Nation Status’ assisted by a healthy workforce should be of tremendous benefit to the minerals industry and Malaysia in meeting the globalisation challenge of a safe and healthy work environment. BEM lighter moments Golf &Coffee When things in your life seem almost too much to handle when hours in a day are not enough remember the mayonnaise jar… and the coffee A professor stood before his Philosophy class and had some items in front of him When the class began wordlessly he picked up a very large and empty mayonnaise jar and proceeded to fill it with golf balls He then asked the students if the jar was full They agreed that it was The professor then picked up a box of pebbles rolled and poured them into the jar He shook the jar lightly The pebbles rolled into the open areas between the golf balls He then asked the students again if the jar was full They agreed that it was The professor next picked up a box of sand and poured it into the jar Of course the sand filled up everything else He asked once more if the jar was full “Now” said the professor as the laughter subsided “I want you to recognize that this jar represents your life” “The golf balls are the important things – your God family your children your health your friends and your favourite passions – things that if everything else was lost and only they remained your life would still be full” The pebbles are the other things that matter like your job your house and your car The sand is everything else … the small stuff If you put the sand into the jar first” he continued “there is no room for the pebbles or the golf balls” “The same goes for life If you spend all your time and energy on the small stuff you will never have room for the things that are important to you Pay attention to the things that are critical to your happiness” “Play with your children” “Take time to get medical check,ups” “Take your partner out to dinner” “Play another -.” “There will be always be time to clean the house and fix the disposal” “Take care of the golf balls first the things that really matter” “Set your priorities” “The rest is just sand” They students responded with an unanimous “yes” The professor then produced two cups of coffee from under the table and poured the entire contents into the jar effectively filling the empty space between the sand The students laughed One of the students raised her hand and inquired what the coffee represented The professor smiled “I’m glad you asked” “It just goes to show you that no matter how full your life may seem there’s always room for a cup of coffee with a friend” Author: Unknown T H E I N G E N I E U R 35 feature Conclusion feature National Minerals Policy: Catalyst For Malaysia’s Economic Development By Dato’ Ir. Haji Abdul Rahman bin Haji Dahan, Chairman, Osborne & Chappel Sdn Bhd and Immediate Past President, MCM National Minerals Policy Working Group. Tuan Haji Muhamad Nor Muhamad, Executive Director, Malaysian Chamber of Mines Prof. Madya Ir. Dr. Eric Goh, Head - AMQUEST RESEARCH, USM Engineering Campus, Universiti Sains Malaysia The National Mineral Policy was drawn-up by the Government to place Malaysia’s mineral industry on par with that of its neighbouring major mining countries, as well as to respond to development taking place in the mining and mineral industry in and around the region. The purpose of the Policy is to enhance Malaysia’s competitive advantage in a globalised market that will benefit the national economy, to maximise the usage of research and development, and geoscientific information for the socio-economic improvement of the country whilst considering and keeping environmental and sustainable development in balance. One of the Policy’s major objectives is to create a more conducive environment economic climate to attract more local and foreign investment into the minerals sector for further minerals development. R adical changes are taking place all over the world resulting from the phenomena of trade liberalisation and globalisation. The recent shift of formerly controlled and planned economies to free market economies in many mineral rich countries has resulted in keener competition for the limited pool of risk capital available to invest in minerals exploration, mining and minerals development. In Asia alone, China, India, Vietnam, Laos, Cambodia and Mongolia have all started to open their mineral industry to overseas investment and participation. Many countries have implemented new mining codes to compete for the limited pool of mineral investment funds. Hence, Malaysia alongside its mineral rich ASEAN neighbours, such as Indonesia and the Philippines, has introduced new harmonised mining legislations to replace outdated laws and regulations through its new National Mineral Policy (NMP). The NMP also contains fiscal and investment incentives aimed at further attracting investments, both local and international, into developing the country’s mineral resources potential, especially its hard-rock primary and industrial minerals deposits, and minerals-based manufacturing products. Objectives and Policies The NMP aims to provide the foundation for the development of an effective, efficient and competitive regulatory environment and an attractive investment climate for the mineral sector. The thrust of the NMP is to expand and diversify the sector through optimum exploration, and utilisation of resources though modern technology and sustainable development. The Policy includes salient features that cover aspects such as security of tenure, favourable fiscal regimes, high priority land use for mining, a uniform and efficient institutional framework and T H E I N G E N I E U R 36 i) To contribute to national and state development by promoting diversification and expansion of the mineral industry; ii) To provide an attractive, efficient and stable mineral sector regulatory framework; iii) To encourage exploration and a beneficial expansion of the mineral industry; iv) To p r o v i d e a s t a b l e a n d conducive fiscal system; v) To a c c o r d t h e m i n e r a l industry a high land-use priority in areas open for exploration; vi) To enhance the development of domestic expertise for mineral resource development through research, education and training activities; vii) To provide environmental protection and management of social impact; and viii) To p r o v i d e t i m e l y a n d accurate regulatory, scientific and technical information required by the industry, Federal Government and State Governments, including periodic review and publication of the national policy on the mineral sector. Two main legal instruments to help ensure the full and efficient implementation of the NMP have been drawn-up. They are: Mineral Development Act 1994 This is a Federal Act that provides the framework pertaining to powers of the Federal Government with regard to the inspection and regulation of mineral exploration and mining operations and other related issues. The Mineral Development Act came into force in August 1998. The Mineral Development Act, 1994 spells out the do’s and don’ts related to mining activities. These include statutory requirements that have to be observed by the mine operator before, during and after the commencement of mining operations, such as the giving of notice of intention to carry out exploration work, submission of appropriate mining schemes to the relevant authority for approval before commencement of operations; notice of intention to commence mining operations; and carrying out all related activities in accordance with good and safe practices, and such environmental standards as may be prescribed under the Federal Act and any written law relating to environment. (In this case, the other written law that is applicable is the Environmental Quality Act of 1974, under which mining and quarrying are listed as prescribed activities that are subject to Environmental Impact Assessment.) The implementation of the Federal Law is carried out by the Department of Minerals and Geoscience Malaysia, which is the implementing department under the Ministry of Primary Industries. State Mineral Enactment This Enactment delineates the power and rights of State Governments with regard to the issuance of mineral tenements, such as the issuance of prospecting and exploration licences and mining leases, which fall under the purview of the State Governments. The State Mineral Enactment is currently at various stages of being adopted by the respective State Governments. Presently, Sabah, Selangor, Kelantan, Pahang and Perlis have adopted this Enactment. However, only Selangor and Kelantan have so far implemented the Enactment. The State Mineral Regulations, which is the subset under this Enactment, spells out the detailed procedures that have to be followed when carrying out prospecting, exploration and mining operations in the States, and also contains the various forms that need to be filled for the different procedures. The formulation of the new NMP and its attendant laws and regulations is to place the country’s mineral resources industry on par with that of its neighbouring countries, as well as to respond to the rapid developments taking place in and around the region. Overall, the Policy initiative was undertaken by T H E I N G E N I E U R 37 the authorities to create a more conducive environment to attract investments, both local and foreign, into the mineral resources industry and to revitalise and to give it a much-needed boost. National Mineral Council To further help facilitate the implementation of the NMP, the National Mineral Council was formed in 1998 comprising members all the Menteri Besar and Chief Ministers of the various states in Malaysia, Federal Ministers directly or indirectly involved with the mineral industry and related Heads of Federal Government Departments. The Deputy Prime Minister chairs the Council, which is to ensure that sufficient emphasis is given to the deliberations and decisions taken by the Council. The key role of the Council is to bring about greater coordination and cooperation in the drawing up and implementation of policies related to the development of the mineral sector. This Council, therefore, provides the forum for the Federal and State Governments to have dialogues and discussions, from time to time, so that all issues and problems related to policy and implementation and development of the mineral sector could be resolved in a coordinated manner. At the Council’s last meeting in late 2001, it agreed in principal to redefine rock materials in the National Land Code to minerals under the State Mineral Enactment. This will ensure the optimal use of rock materials, as well as increasing their productivity and utilisation efficiency. It will also create better investment interests in that operating permits or licences will be issued for a longer duration with a better security of tenure. Regulatory System The control and authority over land and land use vest in the hands of each of the 13 states that comprise the Malaysian Federation. The existing mining laws and regulations tend to differ from one state to another due to their respective geopolitical needs and circumstances. feature transparent guidelines and regulations. The salient features and objectives of the NMP are: feature Most of these laws have in any case been the legacy of the British colonial administration before Malaysia achieved independence in 1957. In addition, these laws have been designed for the regulation of mining of alluvial deposits, which are not suitable for large-scale exploration and mining of primary hard-rock minerals. The NMP has addressed this problem through formulating a comprehensive set of harmonised model State Mineral Enactment and Regulations that provide uniformity and transparency. A primary feature in the model enactment is the security of tenure granted to successful prospectors seeking mining leases, high priority land use for mining, uniform and efficient legal framework and transparent guidelines and regulations. Some of the other features in the new enactment include matters pertaining to environmental protection and mine rehabilitation, sustainable development and management of social impact, and the creation of one stop agencies at State levels to consider all prospecting and mining applications. The environmental and rehabilitation obligation is a priority objective in the development, operation and closure of mines, within the concept of “designing mines for closure”. It ensures that there is a balance between the cost and benefit associated with the mine’s economic development and environmental management in a sustainable and productive manner. Equity Policy As embodied in the NMP, the Malaysian Government welcomes foreign investment. Malaysia’s equity policy in projects involving the extraction or mining and processing of minerals is such that majority foreign equity participation of up to 100% is permitted. In determining the percentage, three criteria will be considered, namely the level of investments, the technology and risk involved in the projects, the availability of Malaysian expertise in the areas of exploration, mining and processing of the minerals concerned and the degree of integration and level of value-added involved in the projects. In keeping with the objective of ensuring increasing Malaysian participation in mining activities, it is the policy of the Government to also encourage mining projects to be undertaken on a joint-venture basis between Malaysian and foreign partners. All such participation is exclusively on a paid, carried interest basis or other similar arrangements. A private investor that has been approved with a given equity condition will not be requested to restructure his equity at any time, notwithstanding the fact that he may have undergone an expansion or diversification, provided that the he continues to comply with the original conditions of approval and retains the original features of the project. Fiscal System Malaysia maintains a fiscal system, which is consistent, fair, transparent and competitive. Mineral producers are required to pay an income or corporate tax based on the profits of their operations. Malaysia’s corporate tax today is 28%, one of the lowest in the region. Export duties on most minerals have been abolished. Most raw minerals are subject to low or zero level import duty. For those still subject to import duties, the importer may apply to the Government for a waiver. Imported machineries and equipment for use in mining projects are subject to the general schedule of import tariffs but an application can be made on a case- T H E I N G E N I E U R 38 by-case basis. Value-based royalties are assessed by some individual states on some mineral commodities. Certain area-based land premiums and rental fees, processing and application fees for mining lands are imposed by the states. Investment Incentives Companies investing in mining and mineral exploration per se currently do not enjoy much frontend investment incentives. However, those involved in mineral processing and the manufacturing of mineralbased products do enjoy several investment incentives and other facilities. The principal incentives for such investments and facilities are provided for in the Promotion of Investments Act 1986, the Income Tax Act 1967, the Custom Act 1967, the Sales Tax Act 1972 and the Excise Act 1976. These incentives include the pioneer status, which takes the form of partial exemption from corporate tax, and the investment tax allowance, which provides for an allowance amounting to 60% of the qualifying capital expenditure incurred on the project within five years from the date of first incurrence of capital expenditure. There are also incentives for high technology industries that provide full tax exemption of a company’s statutory income for five years, for strategic industries where full corporate tax exemption can be granted for a period of ten years, and for R&D activities carried out in the field of science and technology with Diversification of Malaysia’s Minerals Sector Up to the mid 1980s, the emphasis of the mineral industry had been on the development of the tin industry while there was also mining activities associated with the production of copper, gold, iron ore and some other industrial minerals. However, with the drastic decline in the prices of tin in the 1980s, the Government and the industry were forced to sit up and take notice of the fact that not only had the fundamentals of the tin market changed drastically but also the fact that with declining production, the tin mining industry could not be expected to continue to contribute to national development as it had done in the past. Hence, taking this cue, efforts have been made to diversify away from the production of tin, and slowly the emphasis has shifted from the production of metallic minerals to the production of industrial minerals. Currently, the areas targeted for development are the silica-based industry, clay based industry, and limestone and granite for production of dimension stones. The potential for the development of the country’s coal resources are also being looked into. Under this programme of diversification, emphasis is also given to realise the maximum value of a given mineral and to find the best alternative use for the material. For instance, limestone, which is of high quality, more specifically of marble quality, is encouraged to be cut into dimension stones to be used as facing bricks and decorative wall tiles and in interior furnishings of hotels and other buildings. This is in contrast to the previous practice of blasting the limestone hills to produce aggregates for construction and road building. The same principle is applied to the development of granite resources. In T H E I N G E N I E U R 39 the case of silica sand, efforts are being undertaken to realise the full potential of the material including production of crystal glass and even silicone chips. In this area, foreign technology from those countries that have advanced industries is expected to be imported through the form of joint ventures with local entrepreneurs. Another area that is being looked into earnestly is the development of the ceramic based industries including the production of high quality ceramic products and the future production of composite materials for the electrical, automobile and aerospace industries. It is indeed, the thrust of the National Mineral Policy objectives that will carry this diversification programme through, successful. Conclusion Malaysia’s NMP’s should be an evolving strategy statement that constantly adapts and changes to reflect and suit the needs of the national and global market place. A well-crafted NMP provides the necessary confidence and security assurance required by investors, whether local or foreign, to undertake risky exploration and mining development ventures in the country’s mineral resources potential. From the inherent features and initiatives of Malaysia’s National Mineral Policy, it can be seen that its primary purpose is to act as a catalyst in attracting and enhancing foreign and local investments into the Malaysian minerals industry. With a liberal legal, fiscal and institutional framework in place, coupled with a fairly rich endowment of mineral resources and Malaysia’s positive stand on private sector participation, the Malaysian minerals sector thus provides a conducive and competitive environment and ample investment opportunities for all. Demand for minerals will continue to remain at high levels in Malaysia’s industrialisation programme. Malaysia’s minerals industry is the new source of economic growth and wealth for the nation, as envisaged under the NMP objectives. BEM feature the object of using the results of the R&D for the production and improvement of materials, devices, products, produce or processes. For companies, which do not qualify for any of the above incentives, they can apply for the reinvestment allowance. Export incentives are granted to companies exporting products in the form of export credit refinancing (ECR), double deduction for expenses for promotion of exports, double deduction of export credit insurance premiums and industrial building allowance for buildings used as warehouses for storing goods for exports. There are also incentives given for manpower training and full import duty exemption on raw materials for products that are exported, and also exemption from import duty and sales tax on machinery and equipment used directly in the production process or used for environmental control, recycling, maintenance and quality control. To broaden and expand further the scope of the fiscal incentives and tax allowances available to investors in the mineral resources industry, the Malaysian Chamber of Mines is actively pursuing discussions with the Government on modifying various existing incentives and tax impositions and adding several new ones to make the industry more attractive especially with regards to attracting investment capital for prospecting for mineral deposits and the subsequent mine development and also manufacturing of minerals based value-added products. The Chamber aims to have the industry classified as a promoted industry to enable it to have access to all the investment incentives and facilities accorded under the Promotion of Investments Act 1986. These discussions are on-going and are within the ambit of the NMP’s objectives to make the Malaysian mineral resources industry internationally attractive and competitive. feature Quarry Blasting And The Neighbour, Fear & Reality: A Malaysian Perspective By Ir. Haji Look Keman bin Sahari, B.Sc (Mining Engineering), M.Sc (Explosives Ordinance Engineering) T here are more than 300 quarries of various sizes in Malaysia today, operating and supplying much needed materials for the construction industry. The quarries supply rock aggregates for roads, highways, flyovers, airport and runways for our world-class airport. The quarrying industry is a primary industry that supports the development of all countries and without it we will not be enjoying the convenience of modern life. This article is intended to provide an introduction to the industry that many people despise because of the perceived environmental problems it causes to them through blasting work. Quarrying Materials In general, the public tends to associate quarrying with rock aggregates such as limestone, granite and sandstone aggregates that quarries supply to the construction industry for the development of townships, road, highways, airport, flyovers, railway ballast and other development activities. The public also tends to associate the industry with “lori hantu” and other lorries carrying rock aggregates causing havoc to the public when carrying their products to development sites. But apart from aggregates, quarries also produces dimension stones supplying marbles, tiles and sand that we use in our homes, rip-rap stones for the protection of our beach, mineral sand for production of glass, basalt fibres for insulating materials for homes and countless other products. The products from the quarrying industry are basically low cost materials that need to be produced in volume to make them viable and profitable. The market is normally located only a few km away from the quarry. It is very rare to have quarries operating tens of kilometres away from development areas. The transportation cost generally determines the viability of the quarry operation. However, with rapid development of the country, quarries, which were originally many kilometres away from the market, are soon surrounded by houses. Many buyers never suspect that their dream homes are near quarries until they are given keys to move into their homes. Then their problems do begin. Quarry Location In Kuala Lumpur and its vicinity, there are many quarries operating in Damansara, Sungai Buloh, Bandar Manjalara, Cheras, Kajang and Hulu Langat producing mainly granite aggregates for the maintenance and development of facilities in Kuala Lumpur and its surrounding areas. These quarries were originally operating far away from residential or industrial areas. However, with the rapid development of the city, they were soon surrounded by houses and factories, and many were virtually forced out after relentless T H E I N G E N I E U R 42 IMPACT OF QUARRY BLASTING OPERATION The typical complaints received by the authorities on quarry operations are flyrocks, noise, ground vibrations, dust and sometimes discharge of dirty (polluted) water and mud after heavy rain. The media also tends to publicise claims of cracks in houses that are alleged to be caused by blasting work at the quarries nearby. Many complaints are true and actually the result of quarry operation, but are the complaints justifiable? Quarry operations particularly blasting work, produce ground vibration, airblast, noise and also dust and sometimes flyrocks. This is unavoidable but in many instances, it could be reduced to a practical and reasonable level. It cannot, however, be eliminated. Flyrocks Flyrocks are most dangerous. There were several incidents in the past where rock fragments from a quarry flew over 400 metres, and in one case hit and killed a lorry driver who was driving through a housing project area. There were also cases where rock fragments flew over several hundred metres and hit houses. These are relatively rare incidents nowadays since the introduction of the requirement of quarries to hire competent shotfirers by the authorities. The introduction of new technology such as the use of shock tubes (NONEL) with the compulsory training of shotfirers imposed by the Department of Mineral and Geoscience has helped minimise such incidents. This does not mean that blasting Typical blasting at a quarry engineers are not required. Only the engineers with the training in geology and explosives engineering will be able to understand the interaction between the explosives and rocks. While civil engineers and mining engineers do learn and have sufficient knowledge in geology, only those who took mining engineering actually learn explosive and blasting technology at university level. In Malaysia today, only students in Mineral Resources Engineering at USM are required to take this subject at undergraduate level. Others have to undergo Shot Firing courses conducted by the local institutions, and the Rock Blasting courses organised by explosives manufacturers. However, there are very few trained engineers because of the reluctance of younger engineers to work in this field and the misunderstanding or misconception that it is very dangerous to handle explosives. Fewer still are the engineers who understand the effect of uses of explosives on structures and the psychological effect on humans. Many of these subjects are taught at military schools and mining schools particularly in the United States. Airblast The most common cause of complaint is actually airblast. There are two components of airblast, that is, concussion and noise. Concussion is sound waves with a frequency of less than 20 Hz while noise is sound waves with frequency of more than 20 Hz. Until now there is no record of airblast ever causing damage to any structure or houses near quarries. There is therefore no record of successful court cases against any quarry by any claimant alleging that airblast caused damage to their houses. Why there are so many complaints then? It could be due to psychological reasons given the fact that many people have been killed from the detonation of explosives from incidents such as car bombs in Iraq and suicide bombing in Palestine. Many people also fear anything associated with explosives. A house hit by flyrock from quarry blasting T H E I N G E N I E U R 43 feature campaigns and complaints from the public. A new area, which was originally slated for the quarry industry at Bukit Lagong, is now facing the same cycle of problems. It is interesting to note that quarries have never approached or never been allowed to operate near existing residential areas but once a quarry is established, houses and other interests, which are incompatible with quarrying operations begin to encroach slowly into what is considered a buffer zone between quarries and development. feature The limit imposed on explosives by the authorities is normally about 120 dB(Linear) which may cause glass windows to rattle but not enough to break it. It will not cause any physical damage to any structure or building but can be frightening to those not familiar with explosives. For example, Siskind and Summers of the US Bureau of Mines TPS 78 (1974), propose the following; Linear Peak dB Safe 128 Caution 128-136 Limit 136 Recommended C-Peak or C-Fast dB 120 120-130 130 Not recommended A-Peak or A-Fast dB 95 95-115 115 It is clear that the safe levels are actually far above the level imposed by the authorities. Based on research carried out by academicians and mining and quarry operators, most complainants are normally people who are new residents who initially had never expected their new homes to be near quarries. When they bought their new homes, they were impressed by the developer’s brochures portraying their new homes near virgin forest, without mentioning the fact of an operating quarry. The limits on explosives imposed by the authorities are so low that if the quarry operator complies with them there is no chance of any damage to homes. Ground Vibration The other source of potential complaints is ground vibration from blasting work. When explosives detonate in a borehole, it produces vibration waves which travels quite far in all directions depending on the initiation system used and the design of the blast. The vibration levels decreases with distance. Ground vibrations have the potential of causing damage to homes if not properly controlled. A lot of studies were carried out by the former United States Bureau of Mines on the effect of ground vibration from blasting from mines to homes and various criteria had been formulated on the levels that can cause damage to structures. The most common Damage Criteria quoted by Malaysian environmental and engineering consultants when forwarding their Environmental Impact Assessment Report or Method Statement Report for blasting work near residential areas are those developed by United States Bureau of Mines (1971) Damage Criteria Particle Velocity < 2.0 in/sec 2.0 – 4.0 in/sec 4.0 – 7.0 in/sec > 7.0 in/sec Damage No damage Plaster cracking Minor damage Major damage to structure A seismograph (blasting monitoring equipment) However, the limit imposed by the authorities in many countries is not actually based on the Damage Criteria but on the so-called comfort level or more plainly said, the level that will cause minimal complaints from the public. It is practically impossible to eliminate complaints altogether because of the ability of human being to detect vibrations, as low as 2.0 mm/sec. The public complains because they fear that their houses may be damaged or even collapse. Many allege that quarry operations near their homes have caused cracks to the doors, ceiling etc. These have never been proven though much research done by many universities particularly in US and Britain. Unfortunately, it is the quarry operators who have to pay the price of working near residential areas through no fault of their own by having to design their blasting work to comply with stricter requirements. The cost of blasting will go up and ultimately the customers will have to pay a higher prices for aggregates. These would not have been the case if the authorities are consistent in their policy of not allowing quarries to be set up near residential areas and not allowing residential areas to be built near quarries. MALAYSIAN PERSPECTIVE Based on the requirements of EIA alone, a new quarry has no chance of being allowed to operate near existing residential areas with the exception of construction quarry where a developer is allowed to do blasting work achieve the development platform. However, the other way round seems to be permissible, and a recipe for the trouble. T H E I N G E N I E U R 44 monitoring and interpretation, and able to use correct blast monitoring programmes. It is therefore clear that if blasting practices are to be improved, engineers must be willing to learn shotfiring techniques and to supervise blasting work. Those engineers with the knowledge in explosive engineering, geology, concrete technology and structures should be able to design proper blast that will comply with the authorities’ requirements or at least be able to put up a convincing case against impractical conditions imposed by the authorities. Proper recording of all blasting work and endorsement by professionals are keys to defence against potential litigation by the “injured party”. Ability to use equipment such as a seismograph to measure, record, understand and interpret ground vibrations and airblasts, is a field within engineering that is beyond the expertise of shotfirers. If engineers do not want to do it, who else is there to do it? Conclusion What can we the engineers do? Unfortunately, it is quite common in Malaysia for quarry operators to put their trust fully to shotfirers. While competent and experienced shotfirers know how to blast well, their knowledge of explosives and rocks and their effects on structure and human beings is very shallow. It is not, however, their fault because engineers do not seem to want to work in this field or even supervise blasting work. Quarry managements do not insist on engineers handling the blasting work on the pretext of saving cost, thus discouraging engineers from specialising in this field. There are also very few engineers well versed in blast LIGHTER MOMENTS The Chinese Saying? Said also don’t listen Listen also don’t understand Not understand also don’t ask Ask also don’t do Do also do wrong Wrong also don’t admit Admit also don’t correct Correct also not happy Not happy also don’t say Blasting is not just a science but also an art that needs to be learned through continuous professional education and training. To be a good blaster a person needs to be a good communicator and also a good public relations officer. A good engineer with good blasting knowledge is an asset to the quarrying company especially when the quarry is near a residential area. With the requirement that quarries near residential areas must have regular meetings with residents to discuss complaints, it is therefore essential that engineers must be well versed with blasting methodology and able to convince residents that their practices are safe. Even though blasting is a nuisance that needs to be tolerated by those who encroach upon quarry neighbourhoods, blasting practices that comply with the authorities’ requirement is actually very safe. The public should not have any fear at all if the quarries comply fully with all safety regulations. Advancement in blasting technology has ensured that blasting can be carried out safely and efficiently. Even though Malaysia has not yet adapted any Blasting Standard, the current operational conditions are very safe and can only improve further with competent engineers handling the blasting work. BEM REFERENCES 1. 2. 3. 4. 5. Environmental Management - Institute of Quarrying, UK Blaster’s Handbook - ISEE 17th Edition (1998) Blasting Guidance Manual - OSME, US Department of the Interior (1987) Blasting Engineer’s Training Manual - Orica Shotfirer’s Course Note - Institute of Quarrying, Malaysia T H E I N G E N I E U R 45 feature Reports have appeared in local newspapers where flyrock from blasting work reached houses on the periphery of quarries. Neighbours complained of their houses shaking from ground vibrations and airblast from blasting work at quarries nearby. The quoted examples are quarries working at Sungai Siput in Perak, Bukit Lagong in Gombak, Selangor and many other quarries in Selangor. All these quarries have been operating for many years. It is a classic case of houses encroaching on the quarries. Residential areas and quarrying activities are not a compatible neighbours. While they need each other, they really cannot be near to each other. However, through no fault of their own they have to tolerate each other’s presence. While the quarry operators need to be more professional in their quarry operations, the residents need to understand that by having quarries nearby they have the products that are needed in a countries development. Many people also derive their income from quarry operations. feature Legislation For Quarrying And Mining By Ir. Dr. Mior Termizi Bin Mohd Yusof, School of Materials and Mineral Resources Engineering, Universiti Sains Malaysia, Ex-Inspector of Mines W hen the British managed to gain controlled of the Malay States in the 19th century, they introduced laws to control land management and mining operation in all the States according to their own agenda as colonial master. Control of mining operation and abundant reserves of tin led Malaya, then Malaysia, to be the world’s number one producer of tin until 1985. After that there was a major decline in the mining industry. One of the reasons for the decline of the mineral industry in Malaysia was the outdated mining legislation. As a result there were less meaningful exploration activities in the country. So the Federal Government legislated a new mineral legislation namely the Mineral Development Act 1994 (MDA) and proposed to State Governments to adopt the recommended State Mineral Enactment (SME). As for quarrying activities, since the Colonial Government era, the quarries were operated by the Public Works Department to supply rock material for the building of roads and ballast for railway tracks. As the Government is not always adept in business, the quarries were “handed over” to the private sector. However many accidents occurred and there was a need to have some quarrying laws. This was initially carried out by the Perak State Government in 1992 through its Perak Quarrying Rules. After Independence After Malaya gained independence in 1957, the British Colonial Mining Enactment in each State was still used Blasted rock at a quarry with some modifications in line with the Federal Constitution. The Land Ordinances were replaced with the National Land Code (NLC) in 1965. The introduction of NLC was to have some uniformity for land policy for the whole Peninsula but authority over the land is still the State Government. The NLC has some provisions with regard to the disposal of land for mining purposes. The issue of prospecting and exploration permits and mining leases were under the provisions of the Mining Enactment for each state. However, the States of Sarawak and Sabah did not adopt the NLC and still use their own Land Ordinances even after they formed part of Malaysia in 1963. There were no major amendments to the Mining Ordinance of Sabah over the last 80 years (Lee, 2000), and the situation in Sarawak is about the same. T H E I N G E N I E U R 46 Quarrying Laws Before 1992, there was no specific law that controlled quarrying. So quarrying was solely under the jurisdiction of the Land Office or the State Government, which had limited or no technical resources to oversee the quarrying operations. The function of the Land Office include land management like the issuing of the Permit to Remove Rock Material, of Temporary Occupation Licence (TOL) of State Lease of quarrying purpose and collection of royalties according to the volume or amount of rock quarried. The quarries were left to do their operation according to their own whim and fancies. In the 1960s the author used to see quarry workers dangling on ropes at a granite hill near Gunung Rapat in Ipoh. This Dulang washer Sabah also formulated its quarry rules. Other States are yet to follow suit in controlling their quarrying activities. General provisions of the Quarry Rules For Perak, the Quarrying Rules were legislated and enforced in 1992. The Land Administrator is appointed to look after the quarries. The Land Administrator for the purpose of these rules, is the Director of Mines. This practice continues even after the merger of Department of Mines and the Department of Geological Survey to form the Department of Mineral and Geosciences. The Director has the authority to appoint a number of Quarry Inspectors (Rule 22(b)) to exercise supervision and control of quarries on his behalf. The Director and the Quarry Inspectors are mining engineers. In the Kelantan Quarry Rules 1997, the officers are known as the Quarry Inspectors and they have to be a qualified mining or mineral resources engineers. The same applies to Quarrying Consultants. So the emphasis here is the expertise. This was the first step to the running of the quarrying industry by professionals. T H E I N G E N I E U R 47 Under the Quarry Rules, the manager or the owner of the quarry is given the responsibility to make rules within his quarry. This is a way of letting the top management of the quarry to be more responsible on the quarrying operations rather than putting the burden on the shoulders of the Government or the enforcement agency. Every quarry is required to submit a quarrying scheme every year to the Land Administrator or the Quarry Inspector. The proposed scheme will include a surveyed plan of the quarry and a write-up for future quarrying operations. If the scheme is accepted, a permit to quarry will be issued. The submitted plan will act as a record of operation. The scheme has to be submitted by a qualified consultant as defined by the Quarry Rules. Every quarry is required to appoint a licensed shotfirer. The shotfirer is required to pass the Shotfiring Test with the Department of Mineral and Geosciences and also required to pass a test held by the Police for the purpose of getting the licence to use explosive under the Explosives Rules 1923. Mining Laws In 1880s the mines in Perak were looked after by a Warden of Mines from the Colonial Government. The Warden of Mines advised the respective District Officer with regard to prospecting application and mining lease application. The Old Mining Enactments The old Mining Enactment is the British Colonial Mining Enactment that existed in every State. It was devised to control mining and any operation related to it. For the Federated Malay States (Perak, Selangor, Negeri Sembilan and Pahang) Mining Enactment Cap 147 was initially legislated in 1929. The enactment was further extended to the State of Penang and Malacca. The Unfederated Malays States have their own Mining Enactment. Under the Enactment, “mining” or “to mine” means to disturb, remove, cart, carry, wash, sift, smelt, feature unsafe practice was still carried out in some quarries in Malaysia in the 1980s. A freak accident occurred in Perak in late 1980s that prompted the leadership of the Perak State Government to suggest that some control of the quarrying operation was necessary. At that time (late 1980s) the only department that had the expertise and was very close to the State Government was the Department of Mines (now the Department of Mineral and Geosciences) of the Federal Government. Since the colonial times, the Department has been serving the state (as the Warden of Mines and later as Senior Inspector of Mines and Inspector of Mines) to oversee mining operations and to make sure that mines are operated safely and according to the requirements of the mining law. All Inspector of Mines are appointed by the state government under the Mining Enactment and all are qualified mining engineers. They have some experience in excavation and the usage of explosives. With that the Department of Mines was given the task by the Perak State Government to formulate a rule to control quarrying operations. The Quarry Rules were made under the power given to state authorities in Section 14 of the NLC. They were intended to control the operations in quarries with regards to safety in the process of extracting rock materials. Perak led the way with the approval of Perak Quarry Rules 1992. Other states had no such rules at that time. The same thing happened in Kelantan where a quarry had two accidents in a year resulting in injury and death of several workers. The author in charge was the Inspector of Mines for the state of Kelantan, who then volunteered to help the Director of Land and Mines (Pengarah Tanah dan Galian Kelantan) to solve some operational problem that existed at that quarry. He was then given the task of formulating Quarry Rules similar to Perak’s. With the assistance of Kelantan Legal Adviser, Kelantan adopted the Quarry Rules in 1997. feature refine, crush or otherwise deal with any rock, stone, gravel, clay, sand, soil or mineral by any mode or method whatever for the purpose of obtaining metal or mineral there from. Any of the activities above is considered mining and some form of prospecting permit or licence or mining lease is required to perform any of the above activities. The above law did not function well and exploration activity was viewed negatively. Insufficient incentives were given to encourage exploration for minerals. This was due to the following: ● ● ● The duration for prospecting and exploration was limited to one year. The time given was not enough for prospecting primary deposits or for hard rock. The Prospecting Permit did not give the holder the right to obtain a mining lease in respect of any part of the land covered by the permit. The mining lease did not reflect the actual life of the lease from the prospecting operation. The duration of four or five years was too short. When the author was the Inspector of Mines for Kelantan and Sabah, he had received some enquiries from international mining companies with regard to possibilities of mining investment in Malaysia. But they were put off upon browsing through our mining legislations. There was, in effect, hardly any exploration work to look for minerals hundreds or even thousands of metres below ground (Look Keman, 2006). With these deficiencies, new mineral legislation was necessary to replace the old Mining Enactment for every State. New Mineral Legislation In 1987, the Federal Government initiated the formulation of a new Mineral Policy for comprehensive development of the mineral industry. This was brought about because of the decline of alluvial tin mining due to the low price of tin and depleting mining grounds. However, geological Penjom goldmine T H E I N G E N I E U R 48 studies had indicated some valuable metallic (other than tin) and nonmetallic minerals with good potential for development (Balasubramaniam, 2000). So efforts have to be made to encourage “capable” individuals or companies to undertake exploration and mining activities in unexplored areas. To implement the Mineral Policy, two legal documents had been developed at the Federal and State levels. At the Federal level, the law is the Mineral Development Act 1994 and at the State level, the State Mineral Enactment was prepared as a model for adoption by various State Governments. The two new mineral legislations were the result of four years of work by the committee comprising officials from the Ministry of Primary Industries, relevant Federal and State Departments and professionals from the mining community. More than 100 professionals and administrators, including some UN experts on international mineral laws, were in one way or another involved in the preparation of both laws. ● General Provisions of the MDA 1994 As provided for in the Federal Constitution, the responsibility of the Federal Government will be enhanced in areas, such as, the development of mineral resources, mines, mining, minerals and mineral ores and regulation of labour, safety in mines and the environment. The Act spells out the do’s and don’ts related to mining activities. These include the statutory or legal requirements that have to be observed by the mine operator before, during and at the commencement of mining operation. These involve the giving of notice of intention to carry out exploration work, submission of appropriate mining schemes to the relevant authority for approval before commencement of operation, notice of intention to commence mining operations and carrying out all related activities in accordance with good and safe practices, and such environmental standards in other relevant laws. The implementation of the Act is vested in by the Department of Minerals and Geosciences. ● General Provisions of the SME The SME is a State law since land is a State matter. Mineral tenements are in the form of fossicking licence, dulang licence, exploration licence and permit, mining lease and individual mining licence issued under the State Mineral Enactment. The State Director of Land and Mines or the State Director of Land and Survey for Sabah and Sarawak are responsible for the due administration of the Enactment. Under the SME, the State has to form a 10-member State Mineral Resources Committee to decide upon the application of mineral tenements. This Committee is chaired by a person appointed by the State Authority, the PTG who shall be the Secretary, the State Legal Adviser or his representative, the Director of State EPU or his representative, the Director General of Mineral and Geosciences Department or his representative, the Director General of Department of Environment or his representative, the Director of State Forestry or his representative and three other members appointed by the State Authority. All decisions for any application will be more transparent and the decisions made will take into account the practicality of any would be mining ventures with respect to mineability, environment and forest reserve concerns. For Kelantan, a prospecting licence can be issued for a maximum duration of two years over an area of not exceeding 400 hectares, whereas an exploration licence (for hard rock) has a maximum duration of 10 years over an area between 400 and 20,000 hectares. The holder of the prospecting permit or exploration licence may apply for one or more mining lease over the area within his permit or licence. The total duration of the prospecting licence and exploration licence including any renewal will not exceed four years and 15 years respectively. These provisions will give ample time for any exploration activities especially for hard rock mineral deposits. A mining lease may be granted for the maximum economic life but not to exceed an initial term of 21 years. It is issued and classified as small-scale operation or large-scale operation. The classification is dependent on the specified throughput production, the amount of capital, the amount of infrastructure investment and the number of workers. maintaining a high standard of living for its people. We have the potential resources, so the question is why should we import raw materials from outside? Our exploitation of mineral products is limited mainly because of the weaknesses of the old mining legislations. Their provisions were tantamount to discouraging any mineral exploitation and were not fit for an independent nation like Malaysia. With the new legislation it is hoped that large companies and foreign investors will be attracted to, and involved in mineral exploration or mining in Malaysia. BEM REFERENCES Balasubramaniam, N. (2000) The National Mineral Policy: Underpinning the Malaysian Minerals Industry’s Future. Proceedings National Seminar on the Malaysian Minerals Industry held in Kota Kinabalu in June 2224, 2000. Ministry of Primary Industries, Sabah State Governments and Malaysian Chamber of Mines. Lee, D. (2000) The State Mineral Enactment 1999: Sabah Perspective. Proceedings National Seminar on the Malaysian Minerals Industry held in Kota Kinabalu in June 2224, 2000. Ministry of Primary Industries, Sabah State Governments and Malaysian Chamber of Mines. Look Keman Sahari (2006). Mining and Mineral Industry. Editorial of The Ingenieur, June-August 2006. Board of Engineers, Malaysia. Kuala Lumpur. Abbreviations: Summary The main purpose of the mining and quarrying legislation is not to curtail operations but to encourage operators to work for the optimum benefits with due regard to safety and environmental concerns. The nation needs the raw materials for manufacturing and also for T H E I N G E N I E U R 49 EPU: MDA: NLC: PTG: Economic Planning Unit Mineral Development Act National Land Code Pengarah Tanah dan Galian or the Director of Land and Mines. SME: State Mineral Enactment UN: United Nation feature Sabah was the first State that adopts the recommended State Mineral Enactment in 1999 followed by Kelantan in 2001. Other States are in the process of adopting the State Mineral Enactments. environment Coastal Protection Against Wave Energy Part 2 By Ir. Tan King Seng, Director, Coastal Engineering Division, DID Malaysia; Ir. Nor Hisham B. Mohd. Ghazali, Senior Assistant Director III, Coastal Engineering Division, DID Malaysia and Mr. Ong Hon Lim, Engineer, Coastal Engineering Division, DID Malaysia Erosion Control Measures The consequences of coastal erosion can be limited by controlling erosion of coastal land or by controlling the use of coastal zone. There are two approaches towards coastal defence. Hard engineering, which include revetments and breakwaters are built with quarrystone or Figure 2: Coastal protection structures (Source: Coastal Engineering Processes, Theory And Design Practice) concrete armour units is usually the first protection technique that comes to mind. However, increased awareness and concern towards the environment (especially in the vicinity of these hard protection structures) and reflective wave problems, sometimes lead to the development of ‘soft’ engineering measures. Soft engineering emphasises creating the least intrusions upon the natural state of the beach and such methods may incorporate biological components such as plants and grass. Soft engineering is seen to be in line with the more holistic approach to coast and flood defence. The principle in coastal protection is that the energy in the water waves is either partially or totally prevented by the use of man-made barriers from impacting the shore. Some wave energy is reflected as opposed to being dissipated. Consequently, multiple reflections and absence of sufficient energy dissipation within a coastal area can result in a build up of energy which appears as wave agitation and surging in the coastal area. There is a wide range of coastal works that may be employed to tackle a particular situation with each performing a number of different functions. They will also have different engineering lifespans as well as capital and maintenance costs. An overview of the T H E I N G E N I E U R 50 environment Figure 3: Breakwaters at Sungai Marang rivermouth, Terengganu Breakwaters Breakwaters are built to reduce wave action in an area in the lee of the structure. Wave action is reduced through a combination of reflection and dissipation of incoming wave energy. When used for harbours, breakwaters are constructed to create sufficiently calm waters for safe mooring and loading operations, handling of ships, and protection of harbour facilities. Breakwaters are also built to improve maneuvering conditions at river mouth entrances and to help regulate sedimentation by directing currents and by creating areas with different levels of wave disturbance. Breakwaters can be classified into two main types: sloping-front and vertical-front structures. Sloping-front structures are in most cases rubble-mound structures armoured with rock or concrete armour units, with or without wavewall super-structures. Vertical-front structures are in most cases constructed of either sandfilled concrete caissons or stacked massive concrete blocks placed on a rubble stone bedding layer. In deep water, concrete caissons are often placed on a high mound of quarry rock for economical reasons. Figure 4: SAUH Revetment, Selangor Figure 5: Basalton Revetment, Melaka Figure 6: Flex-Slab Revetment, Melaka Figure 7: Rock Revetment, Sarawak various types of coastal defence and their application is described below. HARD ENGINEERING The most common method in coastal protection is to construct rock mounds that serve as a physical barrier to wave energy. Such structures are bulky and depend on their mass and the interlocking of the armour rocks to dissipate wave energy. The common types are described below. ● T H E I N G E N I E U R 51 environment Revetments Revetments are onshore structures with the principal function of protecting the shoreline from erosion. Revetment structures are flexible and typically consist of armour rock or cast concrete blocks. Revetments rest on the surface being protected and depend on it for support. They are relatively light structures and are well suited to locations free of heavy wave attack. Properly designed and constructed revetments are long life structures and require little maintenance. Almost all concrete armour units revetment rely on their interlocking design for stability. Voids within the revetment permit quick drainage over the surface Figure 8: Terminal groyne at Sg Ranca-ranca, Wilayah Persekutuan Labuan of the slope and hence reduces wave run-up. However, it has been observed in recent years by the DID that when revetments are of a single groyne is accretion of beach material on the built on sandy shorelines, the fronting beach gradually updrift side and erosion on the downdrift side; both effects reduces in width. Figure 4 to figure 7 illustrate some of extend some distance from the structure. Consequently, a groyne system (series of groynes) results in a saw-tooththe revetments built by the DID since 1987. In 1987, the DID produced the simplified armour unit shaped shoreline within the groyne field and a differential ‘H’ or SAUH as an experimental concrete revetment for in beach level on either side of the groynes. escarpment and bund protection. Light but well interlocked, the SAUH performed well on the weak soils ● Concrete Blocks Apart from the SAUH described earlier, the Labuan of the Selangor coastline. At Sungai Burung, SAUH was used in combination with mangrove re-planting in what block is another innovative form of coastal protection was arguably the first attempt at combining a biological structure produced by the DID in recent years. The component with a structural coastal protection measure. Labuan blocks, coined after their first installation site, are simple mass concrete blocks designed in-house based on basic principles of material retention, scarp ● Groynes Groynes are built to stabilise a stretch of natural or and toe protection. Essentially designed to protect scarps artificially nourished beach against erosion that is due on the backshore (which occasionally occur after major primarily to a net longshore loss of beach material. storms), the blocks can be arranged as low retaining Groynes function only when longshore transport is walls near-vertical walls or in the form of sloping present. Groynes are narrow structures, usually straight “mattresses”. Labuan blocks are cast insitu and therefore have a and perpendicular to the pre-project shoreline. The effect relatively low capital cost. They are portable and can be easily transported to any place, thereby reducing the cost of coastal erosion control projects. Additional modifications in the form of trapezoidal buttones have been introduced to the original smoothfaced design to reduce run-up. The main purpose of the Labuan Blocks is to provide short term (three to five years) protection to the backshore area by absorbing wave energy along the dune face. Their application is restricted to the upper part of sandy beaches since they are not sufficiently durable to withstand regular direct wave action. Placed on the upper or backshore, they will tend to trap wind blown sand and allow the growth of vegetation under favourable Figure 9: Labuan Blocks as sloping “mattresses”, Seberang Perai Utara, Pulau Pinang conditions. ● T H E I N G E N I E U R 52 environment Figure 10: Training walls at Pantai Layang-layangan, Labuan Training Walls Training walls are structures built to direct flow. A typical function of training walls is to improve mooring conditions in an estuary or to direct littoral drift away from an area of potential deposition. Damage to tidal control gate and erosion of beach profile can be stopped or at least mitigated by the construction of training walls. ● SOFT ENGINEERING The term ‘soft’ is loosely used to indicate either a less reflective protection material or the incorporation of ecosystem-based techniques in coastal erosion control. Some examples of these soft engineering methods are described below. Beach Nourishment Beach nourishment is also known as beach replenishment, beach feeding or beach recharge. Beach nourishment is a soft structure solution used for prevention of shoreline erosion. Material of preferably the same or larger grain size and density as the natural beach material is artificially placed on the eroded part of the beach to ● Figure 11: The frames indicate the beach at Teluk Cempedak, Pahang before (top picture, 2003) and after sand nourishment (bottom picture, 2004) T H E I N G E N I E U R 53 environment compensate for the lack of natural supply of beach material. The beach fill might protect not only the beach where it is placed, but also downdrift stretches by providing an updrift point source of sand. Wave energy is absorbed by the added length of beach slope introduced. Beach nourishment work entails finding a suitable source of material that is compatible with, but not necessarily identical to the material on the beach to be nourished. This method is often the preferred means of protecting a sandy shoreline as it provides the necessary reservoir of material that allows a beach to respond to wave action and achieve equilibrium. The typical interval for renourishing a beach is about five years. Figure 12: Mangrove replanting at Sg Chenaam, Pulau Pinang Mangrove Replanting Wave energy reaching typically flat mangrovefringed coasts is usually low allowing silt-sized material to remain at or near the shore. Short fetches and depth limited wave approach directions of mangrove-fringed coasts limit wave energy reaching the shore. In Malaysia, coastal bunds have been built since the 1930s to protect agriculture land. Mangrove will attenuate and dissipate wave energy before it reaches the coastal bund and the agriculture land within. The limit of wave penetration is dependent on how thick the mangrove belt is. The same applies to other types of coastal forests. ● The objective of mangrove replanting is to maintain or restore the mangrove line and prevent it from retreat. It will also encourage the mangrove line to advance. This can be accomplished by forcing a reduction in wave and current scour in front of the existing mangrove line, and forcing an increase in the sedimentation rate. Sand-filled Geotextile Tubes Geotextile tubes or geo-tubes for short, are large tube or sausage-shaped (greater than 2.5m in circumference) geotextiles fabricated from high strength woven geotextile in lengths greater than 6m. These can be used ● Figure 13: Geo-tubes at Tanjung Piai, Pontian, Johor. T H E I N G E N I E U R 54 Wave height, h = 0.8 d , where d is water depth, Department of Irrigation and Drainage, Malaysia for their support and permission to publish this paper and photographs. The authors would like to extend thanks and appreciation to all; direct or indirect contributions of current engineers and staff of the selected DID offices in the various coastal districts based on whose observation and records, the cases cited herein were documented. Notwithstanding, the contents and opinions herein are those of the authors and should not under any circumstances be construed as the official stand of the Department of Irrigation and Drainage, Malaysia. REFERENCE geo-tubes present a sudden limiting condition that cause the larger storm waves from breaking and prevent them from impacting the shoreline. Geo-tubes have been installed on the threatened shoreline of Tg. Piai in Johor as the first line of defence against waves. Geo-tube breakwaters are softer than rock armour structures and are visually less intrusive to a mangrove forest environment. In the unlikely event that small boats run into the geo-tubes, it would be akin to running aground on a sandbar as opposed to running into a rock outcrop. US Army Corps of Engineers, 1984. Shore Protection Manual Volume I & II Conclusion US Army Corps of Engineers, 2002. Coastal Engineering Manual Wave energy is the main agent of coastal erosion on most parts of the Malaysian coast. This energy is typically strong and concentrated during the monsoon months and subsequently, the respective coastlines are most vulnerable during that time. Several types of structures have been employed to defend against wave attack and these areas typically designed to reduce, absorb and dissipate wave energy. The consequences of coastal erosion can be kept within acceptable limits if engineering and management approaches are properly executed. Erosion can be controlled by structural works or measures using hard or soft engineering, or by the preventive approach of limiting and controlling development activities in coastal areas. The latter includes zoning, prescribing set backs and relocation. Modern design practice places much emphasis on attempting to maintain a healthy beach on the shoreline as the primary means of protection. A sufficiently substantial beach can accommodate the dynamic changes that are the result of differing climatic conditions. Soft engineering are generally more environment-friendly than traditional hard protection works. However, where human life may be at risk or where infrastructure of high density and value exist, the use of hard protection is often unavoidable. BEM Acknowledgements The authors are indebted to the Director General and the Director of the Coastal Engineering Division, Dominic Reeve, Andrew Chadwick, Christopher Fleming, 2004, Coastal Engineering, Processes, Theory and Design Practice Stanley Consultants, Inc, Moffatt & Nichol, Engineers, Jurutera Konsultant (S.E.A) Sdn. Bhd, 1985, National Coastal Erosion Study Final Report Volume I Infrastructure Development Institute-Japan, 2003, Guidelines for Coastal Management The National Committee on Coastal and Ocean Engineering, 1998, Coastal Engineering Guidelines for working with the Australian coast in an ecologically sustainable way Karsten Mangor, 2001. Shoreline Management Guidelines Dover District Council, 2005, Website http:// www.dover.gov.uk/coast/coastal-erosion.asp Jabatan Pengairan dan Saliran Negeri Pahang, 2005, Inception Report prepared by J.K. Bersatu Sdn Bhd: Pelan Pengurusan Persisiran Pantai Bersepadu (Integrated Shoreline Management Plan, ISMP) bagi Kawasan Pahang Selatan. Unit Pelaksanaan Projek Persekutuan Kelantan, 2005, Inception Report prepared by RPM Engineers Sdn Bhd: Detailed Design of Coastal Protection Works at Pantai Sabak, Kelantan. Nor Hisham M Ghazali, Arman Mokhtar, 2003. Emergency Measures In Coastal Protection Methods And Performance; paper presented in Technical Seminar on Shoreline Management at Kota Kinabalu, Sabah organised by UTM. T H E I N G E N I E U R 55 environment in both coastal and river environments and they are filled hydraulically with slurry of sand and water. An apron of geotextile wider than the geo-tube base may be included as part of the design to protect the seaward edge of the geo-tube from the effects of scouring. Scour aprons are typically anchored by a small tube at the water’s edge or by sandbags attached to the apron. On the open coast, geo-tubes are laid parallel to shore as a beach or nearshore breakwater with the primary function of limiting the wave height in its lee. Considering the general formula for limiting wave height; engineering nostalgia The Changing Face Of Kuala Lumpur Photos contributed by Mr. Wong Aik Peoy As was, 1939 Mountbatten Road As is, 2006 – Jalan Tun Note: Perak Photos in Engineering Nostalgia which appeared in The Ingenieur (March-May 2006 issue) were contributed by Mr. Cheo Hong Keyong T H E I N G E N I E U R 56