KUALA LUMPUR: Compugates Holdings Bhd
has decided not to pursue the two logging projects in Papua New Guinea (PNG) covering areas totalling 96,000ha, for which it signed the memoranda of understanding earlier this year.
In a filing with Bursa Malaysia, it said this was in view of “the current challenging market environment”, without elaborating.
Its unit Compugates Perak Sdn Bhd (CPSB) had on Jan 25 signed a memorandum of understanding (MoU) with Marrienberg Hills Resources Development Ltd to engage CPSB as a logger over 26,000ha forested land in East Sepik Province, Papua New Guinea.
Marrienberg Hills Resources agreed to maintain its invitation to CPSB exclusively for a period of six months to enter into a binding commercial enterprise with it for a five-year term, which would be renewable.
On Feb 5 CPSB entered into an MoU with another landowner, Lower Sepik Holdings Ltd, to engage CPSB as a logger over 70,000ha also in East Sepik Province. Lower Sepik also agreed to maintain its invitation to CPSB exclusively for a period of six months to enter into a binding commercial enterprise with it, with the contract to be for five years renewable.
Compugates’ announcement comes on the same day that PNG prime minister survived a vote of no confidence, which followed protests betweeh students and police last month that turned into violent clashes.
Limited time offer:
Just RM5 per month.
