KUALA LUMPUR: Shares of Ageson Bhd fell 8.6% at midday, as the company said it has no approved permit (AP) for sand export.
The counter fell 8.57%, or 1.5 sen to 16 sen with over 80.8 million shares traded. Ageson-PA tumbled 25%, or 0.5 sen to 1.5 sen with 46.4 million shares exchanged hands.
Earlier, the counter was suspended for an hour until 10.07am.
In a filing with Bursa Malaysia Tuesday, Ageson said that neither the company nor any entities within the group and its subsidiaries have the AP for sand export.
“The company is not privy to such information on whether any applications are required and/or submitted to Department of Mineral and Geoscience Malaysia for any kind of collaborations with the existing AP holders that export sand,” it said.
Ageson said the company is currently in the midst of discussion and negotiation with several potential business partners in Malaysia to undertake the sand supply and export to overseas.
"The company has extended its exploration for potential collaboration in sand business beyond Malaysia and is currently in talks on potential collaboration with the potential business partners within south east Asia region. As at to-date, the discussion and negotiation with these potential business partners are at a preliminary stage," it said.
Over the weekend, Bernama quoted JMG director-general Datuk Shahar Effendi Abdullah Azizi as saying that no applications have been received or AP approval given to Ageson or its subsidiary Esa Pile Sdn Bhd.
"Based on existing procedures which are enforced currently, any sand mining operators or mineral traders that want to export sand to foreign countries must firstly apply to KeTSA to get an AP.
"KeTSA issues AP to export sand to foreign countries based on several criteria such as national interest, taking into account the aspects of local consumption needs, the sovereignty of the nation or importance of trade, on condition that operators obtained the approval from KeTSA beforehand, ” he said.
Early this month, Ageson announced that Esa Pile had bagged a RMB44.8 billion (RM27.5bil) purchase order from Guangzhou Kaishengda Industrial Co Ltd for the supply of river and sea sand for 15 years.
Last Friday, Ageson said it planned to source natural sand from Terengganu and Pahang to supply to GKI.
"The sands to be supplied to GKI is from Malaysia," Ageson said, adding that it expects to source of the supply from Terengganu and Pahang.
Esa Pile, which has secured the supply contract, has no sand mining operations of its own.