Ageson falls 8.6% on no sand export approval


Bernama quoted JMG director-general Datuk Shahar Effendi Abdullah Azizi as saying that no applications had been received or AP approval given to Ageson or its subsidiary Esa Pile Sdn Bhd.

PETALING JAYA: Shares in Ageson Bhd closed 8.6% lower, following a clarification by the company that it had no approved permit (AP) for the export of sand.

The counter closed 8.57%, or 1.5 sen lower at 16 sen with over 96.52 million shares being traded. Ageson-PA closed unchanged at two sen with 50.9 million shares done. The counter was suspended for an hour until 10.07am.

In a filing with Bursa Malaysia, Ageson said that neither the company nor any entities within the group and its subsidiaries had the AP for sand export.

“The company is not privy to such information on whether any applications are required and/or submitted to the 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 was currently in the midst of discussions and negotiations with several potential business partners in Malaysia to undertake sand supply and export to overseas.

“The company has extended its exploration for potential collaboration in the sand business beyond Malaysia and is currently in talks on a potential collaboration with the potential business partners within the South-East Asian region. To-date, discussions and negotiations 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 had 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 who want to export sand to foreign countries must firstly apply to the Energy and Natural Resources Ministry or KeTSA to get an AP.

“KeTSA issues APs to export sand to foreign countries based on several criteria such as national interest, taking into account the aspects of local consumption needs, and the sovereignty of the nation or importance of trade, on the condition that operators had obtained the approval from KeTSA beforehand, ” he said.

Early this month, Ageson announced that Esa Pile had bagged a 44.8 billion yuan (RM27.5bil) purchase order from Guangzhou Kaishengda Industrial Co Ltd (GKI) for the supply of river and sea sand for 15 years. Ageson said it planned to source natural sand from Terengganu and Pahang to supply to GKI. Esa Pile, which had secured the supply contract, has no sand-mining operations.

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JMG , Shahar Effendi , AP , Ageson , Esa Pile , sand , exports ,

   

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