PETALING JAYA, Dc 7: Pahang-based Tanah Makmur Bhd said the company sees minimal impact from the three-month moratorium on bauxite mining in the state starting Jan 15, 2016, in the wake of various environmental problems.
The company’s shares closed lower by 2.52% or 4 sen to RM1.55 yesterday, with some 534,600 units traded.
“I don’t see any significant impact on the business, as we produce only 50,000 tonnes to 70,000 tonnes a month,” its spokesman told SunBiz yesterday.
“If, let’s say they stop us for three months, our production will only be reduced by 150,000 tonnes to 210,000 tonnes,” added the spokesman, who declined to be named.
Bauxite exports contribute between 20% and 30% to Tanah Makmur’s revenue annually.
At present, the spokesman said, the company has bauxite deposits of 600,000 to 700,000 tonnes, which will last it for the next 1½ years.
He said the company will consider increasing its production after the end of the moratorium, to make sure its bauxite mining business will not be affected much.
“If it is possible, we will try and catch up for the year,” he said, adding that the company has not been notified of the moratorium by the government and is still not quite sure on the details.
The Natural Resources and Environment Minister said yesterday there will be a ban on bauxite mining for three months due to concern over its impact on the environment. The ban includes a freeze on new bauxite export permits during the period.
Tanah Makmur started its bauxite mining venture in mid-2014 after its discovery of 1.2 million tonnes of bauxite deposits on its KotaSAS township landbank. The plantation and property development company conducts bauxite mining on its own land under subsidiary KS Mining Sdn Bhd.
— THE SUN