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Sand Mining License

APPLICATION OF LICENSE ON GETTING OF SAND IN THE SEA-BED UNDER CONTINENTAL SHELF ACT 1966.

1. Application of Licence

1.1. The area applied for getting the sand must be in the area of Continental Shelf Malaysia as prescribed under Continental Shelf Act 1966.

1.2. Each application shall use form of Form 1 First Schedule of the Continental Shelf (Prescribing Of Forms And Fees) (Amendment) Notification 2019 [P.U.(B) 184/2019] along with application fee of RM 3,000.00 by bank draft/ money order/ postal order in the name of "Federal Lands Commissioner".

1.3. Each application must be addressed to:

           Minister of Energy and Natural Resources
           Ministry of Energy and Natural Resources
           Level 17, Menara Block
           No.25, Persiaran Perdana
           Wisma Sumber Asli, Precinct 4
           62574 PUTRAJAYA

          and copied to;

         Secretary General
         Ministry of Energy and Natural Resources
         Level 17, Menara Block
         No. 25, Persiaran Perdana
         Wisma Sumber Asli, Precinct 4
         62574 PUTRAJAYA

         Federal Lands Commissioner
         Department of Director General of Lands and Mines
         Level 3, Podium 1, Wisma Sumber Asli
         No. 25, Persiaran Perdana, Precinct 4
         62574 PUTRAJAYA

         (Along with application fee of RM 3000.00 by bank draft/ money order/ postal order in the name of "Federal Lands Commissioner").
         Director General
         Department of Minerals and Geoscience
         Level 9, Menara PjH
         No. 2, Jalan Tun Abdul Razak
         Precinct 2
         62100 PUTRAJAYA

1.4. Documents need to be attached with the Form 1 First Schedule when apply are as follows:

        i. Application Letter;

        ii. Completed Form 1 First Schedule;

        iii. Plan and the coordinate of applied area in World Geodetic System 1984 (WGS84) format (hardcopy and softcopy);

        iv. Memorandum & Articles of Association (if any);

       v. Form 49, Company Act 1965/ Section 58 Company Act 2016;

       vi. Form 24, Company Act 1965/ Section 78 Company Act 2016;

       vii. Company Audited Financial Statement for the latest year end (for Berhad company);

       viii. Latest three (3) months Bank Statements (for individual/sole proprietor company); and

        ix. Offer letter of sand supply or memorandum of understanding or agreement document with company that will buy or use the sand.

1.5. Federal Lands Commissioner (FLC) has the right to reject any incomplete application or applied area overlaps with the approved license.

2. Policy Approval Stage

2.1. Period given for this stage is six (6) months from the date of policy approval letter is issued and within that period, the applicant is required to :

  i. To conduct a quantity and quality study of sea sand resources and obtain the approval from Department of Minerals and Geoscience;
 ii. To conduct hydraulic study and obtain the approval from Department of Irrigation and Drainage;
iii. To conduct Environmental Impact Assessment (EIA) study and obtain the approval from the Director General of Department of Environment.
iv. To carry out hydrographic surveying (Pre Dredge Survey) and obtain the approval from National Hydrographic Centre.

2.2. If the applicants fail to complete these studies and survey within the period given, the applicants may apply for extension of time within one (1) month before expiration.

2.3. FLC can recommend to YB Minister of Energy and Natural Resources to extend the policy approval for a period of up to six (6) months only, provided the applicant submits evidence that the studies required in the policy approval are being implemented.

3. Payment and License Approval Stage

3.1. Once the requirements in para 2 are executed, the applicant must settle the following fees for the issuance of the license:

i.   Payment of Licence Fee at the rate of RM1,000.00 for every 2.59 km square area approved or part thereof in the form of a bank draft in the name of "Federal Lands Commissioner".
ii.  Payment of security deposit in compliance with license conditions amounting to RM100,000.00 in the form of a bank draft in the name of "Federal Lands Commissioner".
iii. Payment of security deposit amounting to RM100,000.00 for the welfare of fishermen in the form of bank draft in the name of “Director General of Fisheries Malaysia”.

4. Application for Operating Permission

4.1. The licensee must within 14 days before starting the sea sand dredging operation in the approved area, submit information on the proposed operation using Form A (Proposed Operation to Obtain Seabed Sand Under the Continental Shelf Act 1966) together with relevant supporting documents to JKPTG for approval; and

 4.2. If the licensee has started operating to obtain seabed sand, the royalty rate is set at RM1.00 for each cubic meter of sand obtained for the purposes of domestic use and RM4.50 for each cubic meter of sand obtained for the purposes of export and payment must be submitted in bank draft form in the name of the “Federal Land Commissioner” within 14 days in the following month using Form B (Report on Production of Sea Sand Under Section 4, Continental Shelf Act 1966) together with supporting documents such as Customs Form No. 2 (K2) / Customs Form No. 3 (K3) from the Royal Malaysian Customs Department and related documents.

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