KUALA LUMPUR: Pasukhas Group Bhd's (PGB) wholly-owned subsidiary, Pasukhas Products Sdn Bhd (PPSB) has inked a partnership agreement with BB Energy Sdn Bhd (BB Energy) to engage in river sand mining for export market.
This deal entails a previous agreement signed between BB Energy and Pengurusan Pasir Pahang Bhd (PPPB) which has granted BESB the concenssion/temporary occupational license (TOL) at Sungai Miang, Mukim Pekan, Pahang to extract, dredge, sell and distribute river sand for export.
Following that, BB Energy has now appointed PGB to access, extract, dredge, sell and distribute river sand for export with a contractual term of 12 months and with option extending for a further 12 months duration.
The deal also entails PGB to commit a monthly production of at least 200,000 cubic meter (m3).
PGB executive director Mak Siew Wai said the company expects the sand mining operation to begin in March 2021 due to the government's Recovery Movement Control Order (RMCO) which is still in effect until 31 December 2020, as well as the start of the monsoon season on the East Coast each year from November to February.
"The company is expected to supply a minimal of 2.5 million cubic meters (m3) of river sand per year to potential
buyers from China and Hong Kong to be identified later," he said in a statement today
Under the terms of this agreement, Polo Specialist Trading Sdn Bhd (PSSB) will be the authorised approved permit (AP) via PPPB for the export of river sand.
"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 PGB's plan to potentially forge another revenue stream for the group, to fuel growth and expansion going forward," Mak said.
He said appropriate sand mining operations would help to deepen the riverbed and reduce flood in Pekan, Pahang, usually caused by high tide and monsoon.
Under the agreement, PPPB has imposed strict control to curb excessive mining which may have adverse impact on the environment as well as the livelihood of the resident affected by the sand mining activities with Corporate Social Responsibility (CSR) and Rehabilitation Fund, Mak said.