KUANTAN: THE modest Felda settlement of Bukit Goh near here may soon become an unlikely millionaires’ enclave after large deposits of bauxite were discovered in the area’s vast oil palm plantations.
For the more than 600 Felda settlers living in the 46-year-old settlement scheme, the prospect of joining the nouveau riche is a real possibility as several mining companies have tabled offers, which could see settlers earn up to RM1.8 million each.
The settlers first heard rumours of the discovery during the recent Ramadan, but had kept the stories to themselves.
The rumours became a reality when mining companies last month began organising meetings with settlers to explain their proposals
and profit-sharing calculations, as well as the risks and benefits involved.
Felda Bukit Goh Village Development and Security Committee chairman Mat Zahari Derahman told the New Straits Times that bauxite fever had gripped the settlement.
Mat Zahari, 65, said settlers had been inundated by phone calls
from mining companies, contractors and unknown individuals keen to table bids for a share in the venture.
He said there had also been talks that gold deposits could be found in bauxite-rich areas.
“It began when a mining company representative came to the Felda office here with an authorisation letter from Felda headquarters allowing mining.”
However, he said such activities could be held only after the company obtained permission from the settlers, who had received their land titles.
Felda had also listed other conditions to safeguard the settlers’ interests.
These include compelling the company to sign an agreement with them after getting a permit from the state authorities.
“As the village head, I have organised a meeting between the company and the settlers.
“Other companies, including from Johor, are also interested
in mining the area.”
He said it was up to the settlers to accept or reject the offers. About 20 per cent were prepared to give their consent.
He said the discovery of bauxite deposits in the settlement was first made by a company that tested the earth in the 1980s.
“However, the aluminium ores were not fully matured then and the company abandoned its plan to mine the bauxite.”
Mat Zahari said he was grateful that the settlers might finally have a windfall after three decades, adding that they were encouraged to save part of their earnings from the venture, including keeping the money in the Felda Investment Cooperative, which offers strong returns annually.
Should they become millionaires, he hoped that they would not
follow the path taken by the Felda LB Johnson settlers in Negri
Sembilan, who had a sad ending
after receiving a RM47 million
windfall when their lands were bought over for development in 1996.
NST’s efforts to get comments from the settlers were almost futile when most remained tight-lipped about the project.
But a settler, who wanted to be identified only as Rosli, said the offer made by one of the companies was very attractive.
He said a settler would receive RM20,000 once he signed an agreement with the company and a RM200,000 advance payment would be disbursed to them when their 4.4ha plot was mined for bauxite.
The settlers will also earn between RM10 and RM12 for each tonne of bauxite transported from their plot, apart from other payments that may differ, depending on the companies involved.
Based on the calculation, each plot of land can contain up to 180,000 tonnes of bauxite that can be mined in just six months, as the layers normally sit 2m under the surface.
“The company will also put aside RM40,000 for the replanting costs after the area is mined,” Rosli said, adding that the settlers were mulling over the best offers before signing any deals.