A China-based mining company admitted to paying for the datukships of BN politicians in order to ease operations at its iron ore mine in Bukit Besi, Terengganu.

Li Yang, the chief executive of CAA Resources, told the New York Times that he had paid about US$100,000 (RM 336,501.90 ) per royal title for the politicians.

The politicians from the "ruling party" have indirect stakes in the mine, NYT reported.

According to the report, Li, the 27-year-old son of a wealthy iron magnate in China, did so as part of his plan to "build ties" with politicians and royalty.

"If you’ve got these two to support you, then you can do anything you want, because the natural resources are all controlled by them," Li is quoted as saying.

According to the US daily, Li also said that he was "simply following common practices in Malaysia".

In immediate response, Terengganu Menteri Besar Ahmad Razif Abdul Rahman said he knows nothing about it.

"I have no knowlege about this. I'm sorry," Ahmad Razif, who is also in charge of natural resources, said in a text message to Malaysiakini .

Poor labour, environmental standards

NYT said that CAA is in Malaysia as Beijing had last month announced its plans to introduce standards on labour rights, environmental protection and community relations for the industry.

At Bukit Besi, the report said, CAA avoids potential labour issues by hiring non-unionised worker from Cambodia, Myanmar and Vietnam.

The workers, Li said, work 12-hour shifts, seven days a week and are paid based on how much the mine makes.

The white collar workers, including accountants and engineers, are brought in from China.

CAA also avoids having to conduct environmental impact assessments by dividing the mine into two, each with less than 500 acres.

Only mines larger than 500 acres have to be assessed for environmental impact.

The Bukit Besi mine was once the world’s largest mine and supplied the Japanese steel industry during the World War II. It closed in 1971.