SMM is not a government department. Although it is state-owned and overseen by a Board of Directors comprising senior government officials, it operates as a private limited company under the Companies Act 2016.
Frequently Asked Questions
Find answers to common questions about mineral resource management in Sabah
General Information
A Prospecting Licence is a legally binding instrument issued by the Department of Lands and Surveys (JTU) Sabah to qualified persons or entities. It authorises the licence holder to undertake prospecting activities, including exploration and mineral resource assessments, within a designated tenement area. Such activities generally include mapping, sampling, drilling, and geophysical surveys.
No, a Prospecting Licence holder cannot conduct mining under a Prospecting Licence. Mining can only be carried out under a Mining Lease.
A Prospecting Licence is initially granted for a period of two (2) years. Thereafter, it may be renewed or extended for up to twelve (12) months per application, subject to satisfactory performance and the necessary approvals.
Eligibility to apply for a Prospecting Licence is extended to qualified persons or entities that have met the required due diligence criteria. In line with state development priorities, Sabah-based or Sabah-owned applicants are encouraged.
The process typically takes between three and six months. For further details, please refer to the Application Process for a Prospecting Licence under the Licence Management tab.
Roles & Responsibilities
No, SMM is not a licencing authority. While the Department of Lands and Surveys Sabah (JTU) is responsible for the formal issuance of licences, SMM serves as the primary technical gatekeeper and vetting body. Our roles and responsibilities are categorised as follows:
- Prospecting Licence (PL) Role SMM’s responsibility is to conduct a comprehensive Due Diligence Analysis (DDA). We vet and filter applicants to ensure only those who meet the necessary eligibility criteria proceed to the formal application stage with JTU.
- Mining Lease (ML) Role SMM is responsible for the technical review of the Feasibility Study Report (FSR).
We ensure that the report is complete and satisfactory before the formal Mining Lease application is advanced to JTU for State Cabinet consideration.
SMM serves as a Technical Due Diligence Layer to support the effective and responsible development of mineral projects. Its key functions include but not limited to:
Vetting applicants to ensure they have the required financial capacity and technical expertise;
Acting as a central coordination hub between the Pejabat Hasil Bumi Sabah (Sabah Natural Resources Office) and the Lands and Surveys Department Sabah (JTU);
Providing technical monitoring of exploration and mining activities to support regulatory compliance.
Economic & Social Benefits
The mineral industry serves as a key economic driver for Sabah, delivering financial and social benefits at multiple levels. These include:
Creating direct employment opportunities for professionals and technicians, as well as indirect jobs across the local supply chain;
Generating state revenue through taxes and royalties that support public services;
Attracting domestic and foreign investment into the state’s economy;
Catalysing infrastructure development, including roads and power supply, particularly in rural and remote areas;
Supporting skills development through training and knowledge transfer for the local workforce.
Licensing & Technical Oversight
SMM monitors exploration progress through a structured, phased approach comprising six key stages:
Stage 1: Data Compilation and Site Visits.
Stage 2: Geological Mapping and Reconnaissance Sampling.
Stage 3: Detailed Geochemical Sampling and Geological Surveys.
Stage 4: Geophysical Surveys and Exploration Drilling.
Stage 5: Pre-Feasibility Study (including detailed drilling and resource estimation).
Stage 6: Feasibility Study (covering economic and social assessments).
SMM monitors production through the Sabah Smart Monitoring System (SSMS), a first-ever technology-driven platform designed to enhance transparency and regulatory oversight. The system provides a centralised digital framework to track production data, allowing SMM to accurately monitor outputs and prevent royalty declaration leakages, ensuring that all mining activities comply with state regulations.
A project is eligible to apply for a Mining Lease upon the successful completion of Stage 5 (Pre-Feasibility Study) and Stage 6 (Feasibility Study). These stages must demonstrate that the mineral resource is technically and economically viable for extraction.
SMM has developed standardised reporting templates for all licence holders to ensure technical consistency, transparency, and comparability of data. These templates are aligned with the JORC Code (2012 Edition) guidelines.
All formal reports must be reviewed and signed off by a Competent Person, ensuring the data has been verified by a qualified professional with relevant industry experience.
The templates also include mandatory sections for Environmental, Social, and Governance (ESG) reporting, which track compliance with environmental protection requirements and community engagement commitments.
Governance & Sustainability
SMM ensures transparency in its operations through strengthened governance frameworks developed in collaboration with the Malaysian Anti-Corruption Commission (MACC). These include:
- Establishing clear and documented Standard Operating Procedures (SOPs) forall application and vetting processes.
- Establishing clear and documented Standard Operating Procedures (SOPs) for all application and vetting processes.
- Requiring Board-level approval for key technical clearances.
- Maintaining a commitment to independent, ethical, and professional oversight across all operations.
SMM integrates ESG into its monitoring by requiring licence holders to meet ESG standards, submit regular reports, and undergo periodic audits. This ensures that environmental, social, and governance performance is continuously tracked and enforced across all project stages.
Contact & Support
Our corporate office is located at: Level 7, Lot 7.03, Plaza Shell, 29 Jalan Tunku Abdul Rahman 88000 Kota Kinabalu, Sabah, Malaysia.
General Information
SMM is not a government department. Although it is state-owned and overseen by a Board of Directors comprising senior government officials, it operates as a private limited company under the Companies Act 2016.
A Prospecting Licence is a legally binding instrument issued by the Department of Lands and Surveys (JTU) Sabah to qualified persons or entities. It authorises the licence holder to undertake prospecting activities, including exploration and mineral resource assessments, within a designated tenement area. Such activities generally include mapping, sampling, drilling, and geophysical surveys.
No, a Prospecting Licence holder cannot conduct mining under a Prospecting Licence. Mining can only be carried out under a Mining Lease.
A Prospecting Licence is initially granted for a period of two (2) years. Thereafter, it may be renewed or extended for up to twelve (12) months per application, subject to satisfactory performance and the necessary approvals.
Eligibility to apply for a Prospecting Licence is extended to qualified persons or entities that have met the required due diligence criteria. In line with state development priorities, Sabah-based or Sabah-owned applicants are encouraged.
The process typically takes between three and six months. For further details, please refer to the Application Process for a Prospecting Licence under the Licence Management tab.
Roles & Responsibilities
No, SMM is not a licencing authority. While the Department of Lands and Surveys Sabah (JTU) is responsible for the formal issuance of licences, SMM serves as the primary technical gatekeeper and vetting body. Our roles and responsibilities are categorised as follows:
- Prospecting Licence (PL) Role SMM’s responsibility is to conduct a comprehensive Due Diligence Analysis (DDA). We vet and filter applicants to ensure only those who meet the necessary eligibility criteria proceed to the formal application stage with JTU.
- Mining Lease (ML) Role SMM is responsible for the technical review of the Feasibility Study Report (FSR).
We ensure that the report is complete and satisfactory before the formal Mining Lease application is advanced to JTU for State Cabinet consideration.
SMM serves as a Technical Due Diligence Layer to support the effective and responsible development of mineral projects. Its key functions include but not limited to:
Vetting applicants to ensure they have the required financial capacity and technical expertise;
Acting as a central coordination hub between the Pejabat Hasil Bumi Sabah (Sabah Natural Resources Office) and the Lands and Surveys Department Sabah (JTU);
Providing technical monitoring of exploration and mining activities to support regulatory compliance.
Economic & Social Benefits
The mineral industry serves as a key economic driver for Sabah, delivering financial and social benefits at multiple levels. These include:
Creating direct employment opportunities for professionals and technicians, as well as indirect jobs across the local supply chain;
Generating state revenue through taxes and royalties that support public services;
Attracting domestic and foreign investment into the state’s economy;
Catalysing infrastructure development, including roads and power supply, particularly in rural and remote areas;
Supporting skills development through training and knowledge transfer for the local workforce.
Licensing & Technical Oversight
SMM monitors exploration progress through a structured, phased approach comprising six key stages:
Stage 1: Data Compilation and Site Visits.
Stage 2: Geological Mapping and Reconnaissance Sampling.
Stage 3: Detailed Geochemical Sampling and Geological Surveys.
Stage 4: Geophysical Surveys and Exploration Drilling.
Stage 5: Pre-Feasibility Study (including detailed drilling and resource estimation).
Stage 6: Feasibility Study (covering economic and social assessments).
SMM monitors production through the Sabah Smart Monitoring System (SSMS), a first-ever technology-driven platform designed to enhance transparency and regulatory oversight. The system provides a centralised digital framework to track production data, allowing SMM to accurately monitor outputs and prevent royalty declaration leakages, ensuring that all mining activities comply with state regulations.
A project is eligible to apply for a Mining Lease upon the successful completion of Stage 5 (Pre-Feasibility Study) and Stage 6 (Feasibility Study). These stages must demonstrate that the mineral resource is technically and economically viable for extraction.
SMM has developed standardised reporting templates for all licence holders to ensure technical consistency, transparency, and comparability of data. These templates are aligned with the JORC Code (2012 Edition) guidelines.
All formal reports must be reviewed and signed off by a Competent Person, ensuring the data has been verified by a qualified professional with relevant industry experience.
The templates also include mandatory sections for Environmental, Social, and Governance (ESG) reporting, which track compliance with environmental protection requirements and community engagement commitments.
Governance & Sustainability
SMM ensures transparency in its operations through strengthened governance frameworks developed in collaboration with the Malaysian Anti-Corruption Commission (MACC). These include:
- Establishing clear and documented Standard Operating Procedures (SOPs) forall application and vetting processes.
- Establishing clear and documented Standard Operating Procedures (SOPs) for all application and vetting processes.
- Requiring Board-level approval for key technical clearances.
- Maintaining a commitment to independent, ethical, and professional oversight across all operations.
SMM integrates ESG into its monitoring by requiring licence holders to meet ESG standards, submit regular reports, and undergo periodic audits. This ensures that environmental, social, and governance performance is continuously tracked and enforced across all project stages.
Contact & Support
Our corporate office is located at: Level 7, Lot 7.03, Plaza Shell, 29 Jalan Tunku Abdul Rahman 88000 Kota Kinabalu, Sabah, Malaysia.
If you have further enquiries, please reach out to us.
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