Scouring the deep for old
steel
EXCLUSIVE PETALING JAYA: Some
Malaysian salvage firms are working with an international syndicate to plunder
sunken wartime wrecks in a hunt for rare and highly-sought low-background
steel, used in sensitive medical and scientific equipment.
Evidence emerged at an Australasian Institute for Maritime Archaeology
conference in Australia recently, indicating that the syndicate plundered the
wrecks of 48 naval ships across South-East Asia, mainly around Malaysia and
Indonesia.
A source said the syndicate uses a grab dredger or crane barge to “fish”
parts of the wreckage from the seabed.
In Malaysia, the source said, the illegal salvage operation has already
plundered 19 wrecks, mainly naval ships sunk during World War II.
The source said that the syndicate has become very adept at avoiding
maritime authorities.
“They operate for a few hours each day and sail back out to international
waters, where the authorities have no power to search or detain ships,” the
source said, adding that they return to the salvage work when the coast is
clear.
A Marine Department spokesman said it is aware of the syndicate’s activities
and has stepped up surveillance around shipwrecks in Malaysian waters.
“We are working closely with the Malaysia Maritime Enforcement Agency to
stop this illegal activity,” the spokesman said.
The spokesman also said the authorities are powerless to act once the
culprits flee into international waters.
The operation is driven by big demand and a lucrative payout for
low-background steel in China.
“The hunt for the steel has intensified in the last two years.
“The metal is highly sought in China where it is used to make top-grade,
sensitive medical and scientific equipment,” the source said, adding that the
syndicate has stepped up operations in South-East Asia owing to the great
demand.
It is learnt that the local arm of the syndicate is funded by its China
counterparts, who hire and provide local salvage companies with the ships and
manpower needed.
“Their ships have a powerful magnet to ‘fish’ the metal from the deep,” the
source said.
The crane lowers the magnet to grab metal from the rusted wrecks, which can
be stripped easily.
“A barge can be loaded with metal in just eight to 10 hours.
“They then sail back to privately-owned jetties on the Selangor and Perak
coasts to sort out their loot in makeshift junkyards.
“These temporary junkyards are also their worksites, used to cut up larger
pieces,” the source said.
The sorted metal is then taken to a legitimate junkyard, where it is packed
or compacted before being sent to China. There, it is melted down for reuse.
“In Indonesia, some private jetties and junkyards are even owned by
syndicate members from China,” the source said, adding that the salvaged metal
is sold for between three and five times the market value of steel. The current
price of steel is about RM300 per tonne.
The vessels, dredges and barges used in the operation may be registered to
different owners, the source said, but they are all linked to one China-based
company.
At least eight of these ships are suspected to be in the Malaysia-Indonesia
region, “not anchored at one location at any one time”.
“The ships, mostly captained by Chinese nationals with a dozen or so
foreign crew, are spread across the Straits of Malacca, and the Java and Sunda
seas,” the source said.
The ships sometimes sail for weeks without carrying out any actual salvage
work, coming into port to refuel and resupply before setting out to sea again,
the source added.
The Star reported three years ago that illegal salvagers had plundered at least five
shipwrecks, including two Japanese WWII vessels, in waters off Penang.
The rusted metal from these wrecks was sold for scrap to local dealers
while the steel was sold to local smelting plants.
Following the report, the Marine Department caught the ship and its crew in
the act off Penang.
The owner of the company behind the salvage operation was fined RM70,000.
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