Water, Land and Natural Resources Minister Xavier Jayakumar said the government will conduct a six-month trial to monitor the companies’ adherence to regulations.

He said three “big local companies” have applied for mining licences and that those selected will be issued permits between December and January.

“There are a lot of companies that have shown interest, but we want to have a trial period in one area first, with the Standard Operating Procedures (SOPs) in full flow. After six months, we will decide.

“We want to make sure the SOPs are adhered to and if there are any loopholes, we will plug them,” he told reporters at the Parliament lobby.

Xavier said the SOPs underlined specific procedures before, during and after the mining processes.

“This (bauxite mining) needs capital injection. Only companies with enough capex (capital expenditure) will be able to apply because there are a lot of regulations,” he said.

Malaysia was once the biggest bauxite supplier to top buyer China, with shipments peaking at nearly 3.5 million tonnes a month at end-2015.

Bauxite mining was banned early in 2016 after unregulated mining and run-offs from unsecured stockpiles in Pahang contaminated water sources, turning roads, rivers and coastal waters red.

Previously, it was reported that Putrajaya would not extend the moratorium, which expired at the end of March, despite strong demand for the ingredient used to make aluminium.

“In lifting the moratorium from March 31, we are ready to give an assurance that sustainable mining practices will be put in place to avoid a repeat of the environmental transgressions in the past,” Xavier had been reported as saying.