CNMC Goldmine to appeal against Kelantan’s higher gold, silver royalty rates

[SINGAPORE] CNMC Goldmine Holdings said on Wednesday (May 13) that it is assessing the implications of the revision of gold and silver royalty rates in Kelantan, Malaysia, with its legal advisers.

A circular – issued by the Kelantan State Land and Mines Office – indicated that the royalty rate payable for gold is revised up to 15 per cent from 10 per cent; while the corresponding rate for silver is revised to 12 per cent, up from 10 per cent, with effect from Jan 1, 2026.

There will be no change to the royalty rates payable for lead and zinc.

The notice was received by the group on Tuesday, along with other gold mining companies operating in Kelantan and the relevant government agencies.

CNMC Goldmine is currently working closely with all relevant stakeholders, including its joint venture partner – Kelantan State Economic Development Corp – and the Kelantan Mining Association, to make representations and submit an appeal against the proposed increases.

The group said that based on the advice received from its Malaysian legal advisers, it understands that any variation to royalty rates imposed by a state authority is generally required to be supported by publication in the official gazette for it to take legal effect.

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It added that no official gazette publication was attached to the circular effectively revising the royalty rates to the new rates stated above. “As at (Thursday), the company has not been served with such published official gazette,” said CNMC Goldmine.

Shares of CNMC Goldmine ended 6 per cent or S$0.09 down at S$1.42 on Wednesday, before the news.