KUALA LUMPUR (Sept 22): Pasukhas Group Bhd has inked a partnership agreement with BB Energy Sdn Bhd to extract river sand for the export market.
BB Energy has been granted a concession and temporary occupational licence for Sungai Miang, Mukim Pekan, Pahang, by Pengurusan Pasir Pahang Bhd (PPPB), Pasukhas said in a filing today.
Under the agreement, Pasukhas' wholly-owned subsidiary Pasukhas Products Sdn Bhd is granted exclusive rights to access, extract, dredge, sell and distribute river sand.
The contract is for a period of 12 months, with the option to extend for a further 12 months, entailing 200,000 cu m of sand production per month.
Polo Specialist Trading Sdn Bhd will be the approved permit holder for the export of the river sand.
Pasukhas executive director Mak Siew Wai said the sand mining operation is expected to commence operations in March 2021, as the Recovery Movement Control Order will remain in effect until Dec 31, 2020, as well as the monsoon season on the east coast from November to February.
He said the company expects to supply a minimum of 2.5 million cu m of river sand per year to potential buyers from China and Hong Kong to be identified later.
"River sand is a widely used construction material and currently in high demand due to the rapid pace of construction and reclamation works in China and Hong Kong.
"This development represents a significant milestone in Pasukhas' plan to potentially forge another revenue stream for the group, to fuel growth and expansion going forward," said Mak.
He added that the sand mining operation would help deepen the riverbed and reduce floods in Pekan, Pahang, which are usually caused by high tides and the monsoon.
Meanwhile, he said PPPB has imposed strict control to avoid excessive mining, which may have adverse impacts on the environment as well as the livelihoods of the residents.
Pasukhas' share price rose two sen or 19.05% to 12.5 sen, giving a market capitalisation of RM111.98 million.
http://www.theedgemarkets.com/article/pasukhas-inks-deal-extract-river-sand-export-market
