Everyone has the potential to be a leader: Southern Alliance Mining COO

In the future, part of your smartphone, laptop, tablet, electric car or other high-tech devices could come from Southern Alliance Mining’s (SAM) work. The Malaysian mining company is expanding its operations from mining high-grade iron ore to extracting rare earth elements (REEs), which are a critical component of many advanced technologies, as well as gold.

“No matter how big our resources and reserves of high-grade iron ore are, we will always be peanuts compared to even the junior miners in, say, Australia. To grow SAM, we have to move into other materials that are valuable and available in Malaysia. REEs are in very high demand, and gold is high-value,” says its executive director and chief operating officer Lim Wei Hung.

To speed up its diversification, the firm is in the process of purchasing a 40 per cent stake in MCRE Resources, which operates an ion adsorption clay rare-earth mine in Malaysia, and 100 per cent stake in Paramount Synergy, which has been appointed to carry out exploration for REEs in an area spanning 1,863 hectares in Johor, Malaysia. 

At the same time, SAM is poised to be a leader in environmental, social and governance (ESG) practices – though it does not see its progress that way. “We’re doing things that boost our sustainability, benefit staff and people who live near our mining areas, and so on, but, to us, this is just about doing the right, smart thing. It’s so central that we don’t think of it as ESG.”

For example, it picked MCRE and Paramount partly because they use in-situ leaching to mine REEs. This does not involve massive land clearing, unlike traditional open-pit mining, making it economical and eco-friendly. It will also launch an energy audit this year to help reduce its usage, and is considering using solar power. Both are green steps that will reap savings too.

“Even taking care of your mining areas’ surrounding communities – it’s not just the right thing to do because you are disturbing their lifestyle with your mining. It benefits you too. In this industry, you need many workers. When you hire locals, you uplift them and build a stronger relationship. You avoid problems for yourself with the local communities.” 

Thriving through diversity 

In the next three to five years, the firm will also identify more areas for exploration and build  up its land bank. This will give it more options. Lim explains: “When you have more resources, you have better and broader possibilities. Take refining. When it comes to refining materials, cost matters, and what affects cost is volume. We need volume.”

In an increasingly volatile world and business landscape, it is also engaging in cost mapping to manage its supply chains and risks. The Russia-Ukraine war is a sobering case in point. The ongoing conflict temporarily disrupted the two countries’ considerable exports of ammonium nitrate, a crucial ingredient in the explosives that SAM uses for mining.  

“We have to ensure that we are not caught off-guard by such shocks and trends. That includes studying governments’ policies, especially for REEs, which are already becoming a geopolitical issue. What is China’s policy towards REEs? How is it going to affect us? What is our alternative supply for materials if something happens? We have to study all of this,” Lim elaborates. 

“The good thing is that we have a wide range of people on our board. We have our engineers, accountants, lawyers and more. They provide insight and input from different perspectives. Any one person may focus too much on their area of expertise and miss certain things, so our diversity makes us stronger.” 

SAM also has long-serving veterans in its management ranks who have proven their capability and commitment to the firm over years. With them overseeing its day-to-day operations, the top management can focus on setting the company’s direction and developing its roadmap. “We’re also very fortunate to have reliable suppliers and supportive customers.”

Furthermore, with a lean organisation of only about 160 employees, operational information flows quickly from the ground to management, enabling fast, informed decisions. Lim adds: “By being honest and sticking to the right and best practices in our work, we have earned the Malaysian authorities’ trust. That is another one of our key strengths.”

Thinking of tomorrow 

With over a decade in the company under his belt, Lim is also passing on his knowledge and mentoring employees to groom the next generation of leaders. “I truly believe that everyone has the potential to be a leader, and we need to secure continuity of business. You can’t rely on just one layer of people. You need a second, third tier that can step up if necessary.”

During operational meetings, he gives staff opportunities to clarify their thinking and shine. “I ask questions – why do you want to do this or that, what are the things you must consider, what do we need to do? If you convince me, we proceed. If something happens, what caused it? What did we learn? What should we do in future? I give that kind of direction.”

His role model is the firm’s co-founder and managing director Dato' Sri Pek Kok Sam, who took him under his wing and supported him during a difficult time. When Lim joined SAM in 2013 as its chief financial officer, his main task was to shepherd its bid to list on the Singapore Exchange. When iron ore prices collapsed in 2014, however, all his efforts came to naught. 

“We tried very hard to save the bid, but failed. When we had to shelve it, it really felt like the end of the world, but my managing director got me to see it as only a setback. He motivated me to push through it and keep working. That had a big influence on how I manage my team. I want to be the type of leader that gives others courage and perseverance.” 

When iron ore prices significantly recovered in 2019, Lim led SAM’s renewed attempt at the listing, putting together and submitting its application within four months. “It wasn’t easy but we did it. When we got listed in 2020, it was like seeing the birth of your baby. Now, we are more determined than ever to make sure our baby grows up well.”

For Lim, this tenacity, resilience and mutual support are assets that will propel SAM forward. “When I look back, all the happy and sad moments made me who I am now – a better, more understanding and stronger person and leader. I’m grateful for this, and want to continue to learn from and teach others. It’s like that saying: if you want to go far, go together.”

About Southern Alliance Mining

Southern Alliance Mining is a Malaysia-based iron ore mining company with a strong track record in responsible and sustainable mining. Founded in 2001 by Dato’ Sri Pek Kok Sam, the company began as a subcontractor in limestone mining before becoming the operator of the Chaah Mine in Johor in 2008. The mine’s high-quality iron ore, particularly sought after for subsea pipe coating in the oil and gas industry, has been its primary asset. In 2013, the company expanded into iron ore concentrates, diversifying its customer base to include local steel mills and Chinese exporters. Committed to innovation, safety, and environmental stewardship, Southern Alliance Mining balances profitability with social responsibility and sustainable growth. Following extensive exploration and feasibility studies, the company pursued a public listing on the Singapore Exchange, reflecting its ambition to evolve into a well-rounded mining enterprise.

About kopi-C: the Company brew

kopi-C is a regular column by SGX Research in collaboration with Beansprout that features C-level executives of leading companies listed on SGX. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations.

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