Sand Mining License

LICENCE TO OBTAIN SEABED SAND
UNDER THE CONTINENTAL SHELF ACT 1966

Any activity involving the exploration, prospecting, drilling, mining or operation of seabed sand requires a licence under the Continental Shelf Act 1966 (CSA 1966).

Eligible areas of the continental shelf open for application are as follows:

  • Within 3 nautical miles of a State's territorial waters.

  • Not more than 200 nautical miles from the baseline from which the territorial sea is measured.

Applicant requirements are as follows:

  • Be a private limited company (Sdn. Bhd.).

  • Have paid-up capital of more than RM100,000.00.

  • Have an offer letter, letter of intent to purchase sand, or a sand sale and purchase agreement.

Categories of application for a Seabed Sand Licence under the Continental Shelf Act 1966 are as follows:

  • Application for a Seabed Sand Licence (LDPL).

  • Application for a licence to mine or carry out any operation involving minerals other than sand (LLSP).

  • Application for licence renewal (PLB).

  • Application for Operating Permission under a licence (LKOP).

  • Application for a licence to explore, prospect or drill in connection with exploration for minerals other than sand (LGSP).

  • Licence Termination (LTT).

Application Procedure

  1. All applications for a Seabed Sand Licence under the Continental Shelf Act 1966 [Act 83] must be submitted online through the Federal Land Management and Small Estate Distribution System (MyLand), via https://myland.gov.my/, together with the complete supporting documents.

  2. Documents to Upload to MyLand

    Upload the following documents to the MyLand system:

    • Official application letter from the applicant.
    • Completed Form 1 of the First Schedule.
    • Hardcopy and softcopy plans of the applied area, including its coordinates in the World Geodetic System 1984 (WGS84).
    • Memorandum & Articles of Association (if applicable).
    • Form 49 under the Companies Act 1965 / Section 58 under the Companies Act 2016.
    • Form 24 under the Companies Act 1965 / Section 78 under the Companies Act 2016.
    • The company's latest audited financial statements (for a public limited company).
    • The latest three (3) months of certified bank statements (for an individual or sole proprietorship).
    • An offer to supply sand, a memorandum of understanding, or an agreement with the company that will purchase or use the sand.
    • Bank draft for the application fee. The application fee is RM3,000.00 (Ringgit Malaysia Three Thousand Only) and may be delivered by hand or addressed to:

    Federal Lands Commissioner
    Department of the Director General of Lands and Mines
    Level 2, Menara PETRA, Wisma Sumber Asli
    No. 25, Persiaran Perdana, Precinct 4
    62574 PUTRAJAYA
    Attention: Federal Land Management Division

Policy Approval Stage

The policy approval period is six (6) months from the date the policy approval letter is issued. During this period, the applicant is required to:

  • Conduct a quantity and quality study of sea sand resources and obtain approval from the Department of Minerals and Geoscience Malaysia (JMG).

  • Conduct a hydraulic study and obtain approval from the Department of Irrigation and Drainage Malaysia (JPS).

  • Conduct an Environmental Impact Assessment (EIA) study and obtain approval from the Department of Environment (JAS).

  • Conduct a hydrographic survey (Pre Dredge Survey) and obtain approval from the National Hydrographic Centre (PHN).

If the applicant is unable to complete the studies and survey within the stipulated period, an extension may be requested to fulfil the policy approval requirements. The application must be made one (1) month before the period expires.

The Federal Lands Commissioner may recommend to the Minister of Energy and Natural Resources an extension of up to six (6) months, provided that the applicant submits evidence that the studies required under the approved policy approval are in progress.

Payment and Licence Approval Stage

After all studies referred to in paragraph 6 have been completed and approved by the relevant technical departments or agencies, the applicant must make the following payments before the licence is issued:

  • A licence fee of RM1,000.00 (Ringgit Malaysia One Thousand Only) for every 2.59 square kilometres, or part thereof, of the approved area, payable to the Federal Lands Commissioner by bank draft.

  • A security deposit of RM100,000.00 (Ringgit Malaysia One Hundred Thousand Only) to ensure compliance with the licence conditions, payable to the Federal Lands Commissioner by bank draft.

  • A security deposit of RM100,000.00 (Ringgit Malaysia One Hundred Thousand Only) for the welfare of fishermen, payable to the Director General of Fisheries Malaysia by bank draft.

Application for Operating Permission

At least 14 days before starting sand dredging operations in the approved area, the licensee must submit details of the proposed operation to JKPTG for approval using Form A (Proposed Operation to Obtain Seabed Sand under the Continental Shelf Act 1966), together with the relevant supporting documents.

Once the licensee has started obtaining seabed sand, the royalty rate is RM1.00 per cubic metre of sand extracted for domestic use and RM4.50 per cubic metre of sand extracted for export.

Payment must be made by bank draft payable to the Federal Lands Commissioner within 14 days of the following month, using Form B (Sea Sand Production Report under Section 4 of the Continental Shelf Act 1966), together with supporting documents, including Customs Form No. 2 (K2) or Customs Form No. 3 (K3) from the Royal Malaysian Customs Department and other relevant documents.

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