Malaysia's Mini Mining Boom Is Yet Another Headache for Najib

  • Government imposes 3-month ban after pollution, graft reports
  • Sales of aluminum-rich ore to China top $1.1 billion in 2015

Bauxite ore dust covers the road and vegetation near the Kuantan Port in Pahang.

Photographer: Sanjit Das/Bloomberg
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Bauxite mining in Malaysia went on a tear after neighboring Indonesia banned exports, transforming an industry that hardly existed until 2013 into China’s biggest supplier.

In September alone, China bought a record 3.7 million metric tons of Malaysian aluminum-rich bauxite. It was a $170.8 million windfall for the oil-palm covered hills in eastern Pahang state, where dozens of companies have rushed in, paying smallholder-farmers for their land to be dug up.