Over 50 potential gold sites have been identified in Kelantan, making it the Malaysian state with the largest untapped gold reserves compared to other states.
Senior Lecturer in the Department of Geosciences at the Faculty of Earth Sciences, Universiti Malaysia Kelantan (UMK), Dr. Mohd Syakir Sulaiman, said these gold sites span several districts including Gua Musang, Tanah Merah, Jeli, and Kuala Krai, which are now attracting miners’ attention.
“Kelantan has yet to fully explore the identified areas with gold reserves, which is why its gold potential remains higher than other states. In other states, large companies have been mining for decades, gradually depleting their reserves, unlike Kelantan,” he explained.
The locations identified include Kuala Balah, Sokor, Batu Melintang, Lawar, Kalai, Perasu, Pulai, and several sites in Gua Musang. The gold found here is usually of high purity, including the highly sought-after 999 gold popular among locals.
However, small-scale miners claim that obtaining a license is extremely difficult.
Challenges and Risks
Dr. Mohd Syakir noted that large companies are hesitant to invest in Kelantan’s gold mining due to the remote locations and high operational costs. “Because of these conditions, many investors are unwilling to take the risk. Mining requires substantial capital to extract gold efficiently,” he said.
The state government sees the untapped gold not as a loss but as an asset that could increase in value over time. Nevertheless, authorities are concerned about illegal mining syndicates exploiting these reserves, causing losses to the state. “Authorities must step up monitoring to prevent illegal mining and protect the state’s resources,” he added.
Previously, the state government allowed locals to mine gold using traditional panning methods, as announced by Deputy Chief Minister Datuk Mohamed Fadzli Hassan during the Kelantan State Assembly budget debate.
Small Miners Struggle for Licenses
Despite the announcement, local miners say the licensing process is cumbersome, forcing some to mine illegally. “Some miners have applied multiple times but received no response, which pushes them to continue despite breaking the law,” they said.
Earlier this year, the General Operations Force (PGA) raided illegal gold mining operations in Sungai Kelaik, Gua Musang, seizing equipment worth RM520,000. Small-scale miners lament that syndicates dominate illegal mining, leaving little for honest locals.
Abdullah, a local miner, explained, “Getting a license has always been difficult due to bureaucracy. I’ve applied twice over the years but got no feedback. We mine small-scale just to support our families. For example, in two days, I might get only one gram of gold, which I sell to a gold shop. We don’t get kilos like syndicates do.”
In Gua Musang alone, more than 20 gold sites have been identified. Another miner, Haris, said that if permits are to be enforced, they should focus on large-scale companies with heavy machinery rather than small-scale miners. “Those who exploit gold illegally are usually backed by syndicates, not small miners trying to make ends meet. Licensing small miners won’t stop illegal operations,” he said.
He urged the state government to be fair and not oppress small-scale miners while regulating the industry.
