Quick take: WZ Satu, IJM shares up after Government lifts bauxite mining ban

PETALING JAYA: Shares of WZ Satu Bhd and IJM Corp Bhd were up today on buying momentum on news that the moratorium and ban on bauxite mining activities will be lifted in April.

WZ Satu, which has been affected by the moratorium, surged 15.62%, or five sen to 37 sen with 5.7 million shares done. So far this year, the stock has gained 92%. WZ Satu-WA jumped 21.374%, or 2.5 sen to 14 sen. 

Bauxite mining has become a controversial issue in the wake of various environmental problems and the Government has imposed a moratorium on bauxite mining since January 2016. The Government subsequently introduced a complete ban on bauxite exports.

Dealers said the good news drove WZ Satu shares up as investors expect the group’s results from its mining segment would boost the group’s results when the moratorium and ban were lifted.

Meanwhile, IJM Corp, the joint owner of Kuantan Port saw its shares rose 2.78%, or five sen to RM1.85 with 2.7 million shares traded. 

Kuantan Port, is jointly owned by IJM Corp and Beibu Gulf Holding (HK) Co. Ltd. on a 60:40 equity holdings with the Government having a special rights share.

Following the latest announcement on Monday, all activities on the mining and export of the mineral can be resumed, although this time with a new standard operating procedure (SOP) as well as tighter enforcement of the law.

Water, Land and Natural Resources Minister Dr Xavier Jayakumar said this means that all existing 435,000 tonnes of bauxite stockpiled at the Kuantan and Kemaman ports must be cleared by March 31.

This was because under the new SOP to be introduced soon, he said, only bauxite that had been cleaned would be allowed for export to preserve the environment.

Stock on the Move , WZ Satu , IJM Corp