Digitising mining processes could curb leakages, data manipulation, says expert

PUTRAJAYA: Digitising processes in the mining industry, including geotagging and blockchain technology, could reduce leakages and prevent manipulation of mining output data.

Universiti Sains Malaysia (USM) School of Materials and Mineral Resources Engineering associate professor Dr Mohd Hazizan Mohd Hashim said such technologies would enable production and raw material data to be recorded and reported in real time, allowing for more effective monitoring.

He said one mechanism that could be introduced is a geotagging system to trace the origin of extracted raw materials, while blockchain technology could help prevent data manipulation compared with manual methods.

"If the digital data comes directly from the weighing process and is immediately transmitted to the state government, which manages or calculates royalties, taxes and so on, the Federal Government can also access the data.

"So, the data can no longer be manipulated on a large scale," he said during a presentation at the 5th National Governance, Integrity and Anti-Corruption Research Conference here today.

Hazizan said the comprehensive use of digital systems could also enhance transparency and boost investor and industry confidence in the country's mining sector.

He said such technology was already available, with some industries and companies having implemented it, while field study findings showed that its use could help reduce leakages and enable real-time reporting.

Malaysia could also draw on the implementation of such technology overseas, including the use of an operations room or "war room" to continuously monitor operational movements.

He said the digitalisation effort, however, needed to be supported by closer cooperation between state and federal governments, given their respective jurisdictions in managing the mining industry.

"State governments have authority over licensing, royalty rates and taxes, while federal agencies are more involved in technology and enforcement related to operations.

"If these two levels of government can be brought together through a special committee, it would make things easier for industry players," he said.