Natural resources and environmental sustainability minister Nik Nazmi Nik Ahmad said an environment department probe found that Aqua Orion Sdn Bhd had been mining without the necessary approval.

A formal investigation paper has been opened against the firm under Section 34A(6) of the Environmental Quality Act for operating without an approved environmental impact assessment (EIA) report.

The section provides for a maximum RM100,000 fine, up to five years’ imprisonment, or both upon conviction.

In a statement, Nik Nazmi said that the other firm, Redstar Capital Sdn Bhd, was not actively mining or processing iron ore.

“The environment department will write to the Kelantan lands and mines office so that it will not approve Aqua Orion’s mining licence until an EIA report on its operations is submitted for evaluation and approval,” he said.

He added that environment authorities would be monitoring the area to ensure strict compliance with the relevant laws.