Friday, March 18, 2011

IRON ORE


As posted by Dr. Mahathir Mohamad at Che Det on March 17, 2011 6:15 PM

1. I read an advertisement in a Malaysian paper by a Malaysian Steel mill wanting to buy iron ore. I also know of another steel mill importing iron ore.

2. I think this is very strange. It is known that iron ore is being mined in Terengganu and Pahang right now. I understand that the iron ore is being exported. Without being processed in any order to add value.

3. Why cannot the people mining for iron ore in Malaysia sell the ore to Malaysian mills. The ore they have to buy comes from Australia or even Latin America. The price must be higher because of transportation cost. If Malaysian ore is sold to Malaysian mills, the profit would be higher for the miners as the transportation cost would be lower.

4. If the Malaysian mills are given mining concessions, the price would certainly be lower. It would enable Malaysian mills to compete with imports. If we must export , there should be some added value by conversion to pellets or billets or even construction steel. Malaysia would gain much by so doing.

5. I hope the government authorities concerned will look into this. There is something wrong when we chose to export the raw material needed for our own industry!