Executive Interviews

Asian Metal: Welcome to our interview, Mr. Lee. Could you briefly introduce your company's business?

Bruce Lee: Since 2018, our group has been engaged in the rational allocation of large-scale private land resources. Our business covers determining land use rights and ownership, conducting land development and feasibility studies, confirming land use, and maximizing the optimal use of the land. This includes obtaining all mining rights and permits for private land, as well as legally compliant construction work on shallow minerals such as bauxite found in large-scale real estate development and plantation land. We paused for about three years starting in 2020 due to the COVID-19 pandemic and restarted in 2024. Currently, we are undertaking large-scale oil palm planting projects, including land rehabilitation projects to recover high-quality bauxite. If we have confirmed buyers, our annual bauxite production capacity could reach 3 million tonnes. Last year, our output was around 500,000 tonnes, and this year we plan to produce 1.5 million tonnes.

Asian Metal: In which states are Malaysia's bauxite resources mainly distributed? What are the reserves and quality like?

Bruce Lee: Based on our large-scale land surveys, past data collection, and comparisons with official information, bauxite is mainly distributed in the Yam area of Terengganu, the Kuantan area of Pahang, the Klang area of Selangor, and the east coast of Johor in West Malaysia. In Terengganu and Pahang, the ore typically has an average Al?O? content of 40%min and SiO? content commonly between 2% and 10%. Most high-quality raw ore meets direct export requirements. The total recoverable bauxite reserves in these two states are estimated to exceed 200 million tonnes. Selangor is already well developed, so the remaining recoverable bauxite volume is not large. Johor's bauxite has a higher alumina content, with Al?O? reaching 50%min, but it generally has an SiO? content above 10%, requiring processing before it meets export requirements. Our company's bauxite, with specifications of Al?O? 40%min and SiO? 5%, is located in Terengganu and Pahang, Malaysia, with total bauxite reserves of 40 million tonnes, and exports through the well-established Kuantan Port.

Asian Metal: What is your company's current offer for Malaysian bauxite raw ore? Have you raised prices? What is your outlook for prices in the 3rd quarter of the year?

Bruce Lee: Currently, the group exports bauxite through Global Asset and WINDVESTOR. For our raw ore with Al?O? 40%min and SiO? 5% max, our current FOB offer is around USD36/t, while buyers hope for around USD34/t, which is difficult for us to accept. If bauxite exports from Guinea are restricted, Malaysian bauxite prices are expected to rise by 20–30%. Currently, our company uses Asian Metal's China CIF price as the benchmark for negotiating contract terms. After locking in the price, delivery is made within a certain timeframe—for example, a delivery period of 12–18 months for every 1 million tonnes—without adjusting to market price fluctuations. This allows both buyers and sellers to determine their expected costs and returns, achieving a win-win situation. Overall, given that Guinea is expected to reduce its annual bauxite export volume from 183 million tonnes to 150 million tonnes, and since Malaysian bauxite is the same type of gibbsite ore as African ore, Malaysia can fill this supply gap, which is very favorable for prices. Currently, many bauxite producers in Malaysia have cut production, so we believe that Malaysian bauxite prices will find support during August–September.

Asian Metal: Due to increased mining and transportation costs, have Malaysian bauxite costs increased?

Bruce Lee: Malaysia is currently facing the knock-on effects of surging international oil prices, which have led to a sharp increase in bauxite production costs. For example, our diesel prices have tripled. Combined with higher taxes and fees, mining and operating costs have risen by at least 30%. The current low international bauxite prices mean many producers are unprofitable. Some bauxite operators are barely staying afloat, hoping to overcome internal and external challenges while waiting for better times.

Asian Metal: Which are the main ports for exporting Malaysian bauxite? How far are they from the mining areas?

Bruce Lee: Terengganu and Pahang mainly use Kuantan Port, exporting using 50,000-tonne vessels. The port is within 50 kilometres of the main mining areas, and port conditions are mature. In Johor, the mining areas are too far from the port, and the authorities do not encourage the use of standard ports for bauxite exports, so shipments typically use barges to load 50,000–70,000-tonne vessels. Selangor uses Port Klang for exports using 50,000-tonne vessels.

Asian Metal: Compared to African bauxite, what are the advantages of Malaysian bauxite?

Bruce Lee: First, compared to Africa, Malaysia has a natural advantage in sea freight distance to Chinese ports, with freight costs at least USD20/t cheaper than from Guinea. Second, although the raw ore quality is not as good as African ore, after processing, the SiO? content can be reduced to around 3%. Third, Malaysia's policies and regulatory system for mineral operations are relatively simple, making them easier to control and manage, with lower risks and more guarantees. Moreover, the biggest advantage is that investment costs are lower and the entry barrier is lower, making it easier for small and medium-sized enterprises to participate.

Asian Metal: In 2025, China imported about 1.59 million tonnes of bauxite from Malaysia. Are there any policy restrictions on Malaysian bauxite exports? What permits are required?

Bruce Lee: The reason exports reached only 1.59 million tonnes in 2025 is mainly due to internal and external factors unfavorable to bauxite operations and exports. Internally, rising costs and falling ore prices meant that exporters were only shipping leftover ore from previous waste-clearing operations, leading to unstable quality and supply. Malaysia does not impose special restrictions on export volumes, although individual ports like Kuantan once planned an annual trial capacity of 5 million tonnes. Later, it was found that this deviated significantly from reality, and no trial capacity was formally established. The export permits for bauxite include a license issued by the state Land and Mineral Office based on the legally accumulated ore volume, and a Mineral Trade Certificate issued by the federal government. Applicants submit proof of tax payment and the sales and export contract to simultaneously obtain the export permit and customs clearance for shipment. Additionally, policy requires that exported bauxite must have an Al?O? content of at least 40%.

Asian Metal: What changes do you foresee in Malaysian bauxite export volumes over the next two years?

Bruce Lee: If Guinea strictly implements export restrictions from June this year onward and African ore CIF prices reasonably recover to USD70–80/t, then Malaysia's annual bauxite export volume is expected to reach 2–3 million tonnes. Overall, Malaysian bauxite export volumes over the next two years will increase due to higher international prices. Currently, we are seeing the dawn of better days, and the prospects are promising.

Asian Metal: We wish you continued success in your bauxite business!

Bruce Lee: Thank you.