The Kelantan government has terminated the leases of several mining companies, including those involved in gold and sand mining, for failing to comply with agreed-upon terms, resulting in negative impacts on the environment, water quality, and governance.

Deputy Menteri Besar Datuk Mohamed Fadzli Hassan said the decision followed a comprehensive review by the state government and the Kelantan State Economic Development Corporation (PNINK) to assess the companies’ performance and compliance with lease terms. The process also considered the approval period required for the Environmental Impact Assessment (EIA) Report, which is crucial for sustainable mining operations.

“The government is highly concerned about environmental impacts, and several companies have been terminated due to violations related to these issues,” he said. His remarks came during a State Legislative Assembly session in response to a supplementary question about mechanisms to prevent excessive suspended solids from affecting water quality, eco-tourism, and consumer safety.

Datuk Mohamed Fadzli added that the public can report any suspected violations to authorities, who will investigate and take appropriate action against non-compliant companies.

In a related incident, on October 2, the 8th Battalion of the General Operations Force (GOF) arrested 12 individuals, aged 21 to 43, including a woman, for illegal gold mining activities at Sungai Kelaik, Gua Musang, with seizures valued at around RM520,000.

Currently, five companies maintain active joint venture mining leases with PNINK. The state government emphasized that it continuously monitors these companies to ensure responsible operations, adherence to environmental standards, and contributions to local economic development.

“Continuous monitoring is carried out to ensure that every mining activity is conducted safely, sustainably, and in compliance with environmental standards,” Mohamed Fadzli said.