IJM to get bauxite boost
KUALA LUMPUR: A likely resumption in bauxite-mining activities in the country will be a boost for IJM Corp Bhd
“Since we are in the business of port operations through our ownership in Kuantan Port Consortium Sdn Bhd (KPC), we will have more cargo going through (the port). The government has a regulation of 600,000 tonnes of bauxite that can be exported every month,” said IJM CEO and managing director Datuk Soam Heng Choon.
Speaking to the reporters on the sidelines of the RHB Lekas Highway Ride 2019 launch here yesterday, Soam said this would be a positive development for IJM since the company has a 60% stake in KPC.
The remainder of the 40% is owned by Beibu Gulf Holding (Hong Kong) Co Ltd while the Malaysian government has special rights in KPC.
“There will be a meeting by the government to explain to stakeholders on the standard operating procedures (SOP) quite soon. If this (resumption eventually) comes through, there will be an additional 600,000 tonnes of cargo going through the port every month,” Soam said.
“I think the first task for us is to remove the balance of bauxite cargo in the Kuantan Port. There are some 200,000 tonnes of bauxite. They will be removed eventually before new stocks are allowed into the port,” he added.
He stressed that as a port operator, Kuantan Port did not want its port to be a storage area for bauxite.
“Whatever that comes into the port must only be a transit point,” Soam said.
Kuantan Port is a multi-cargo deep seaport that faces the South China Sea and is strategically located on the eastern seaboard of Peninsular Malaysia.
The port has developed into a major container terminal for the east coast region, according to Kuantan Port’s website.
It was reported in The Star yesterday that among the SOPs that were being proposed in the new draft regulations by the Water, Land and Natural Resources Ministry was a minimum condition for a mining lease or proprietary mining lease application that must cover an area of at least 20ha.
It appeared to be a tight set of conditions including the compulsory placement of a permanent mining engineer and safety, occupational health and environment officer on site.
The companies operating must also be able to prepare the financial capital and equipment suitable for the proposed mining method and provide a public liability insurance of up to RM1mil, according to the draft.
When asked to comment on the governments cost-cutting efforts on certain construction projects, Soam said contractors would still need a “certain level” of profit margins to operate.“We have to look at the change, whether it be project scope, timing, or size. It is a good exercise done by the government to allow the country to optimise the projects,” he said.
Soam said there would be more construction jobs in the market and it would benefit the construction industry.
“I think the government will accelerate some of the construction projects. But for the country’s size compared with the number of projects it has, we just have too many construction contractors of about 80,000,” he said.
“A consolidation is healthy for some of the smaller contractors and even for the bigger contractors if there are opportunities to consolidate it would allow us to compete internationally,” Soam added.
Source : TheStar