DBhd to start work on bauxite mining project in Kuantan

KUALA LUMPUR: Damansara Realty Bhd (DBhd) said a subsidiary has into a term sheet agreement with YHS Resources Sdn. Bhd to start work on a bauxite mining project in Kuantan, Pahang.

The proposed mining activity will be carried out on four plots of land measuring a total of 145 hectares that belongs to Damansara Realthy (Pahang) Sdn Bhd (DRP).

DRP is 80% owned by DBhd.

YHS, which is 50% owned by Liuzhou City Handa Mining Co Ltd, is involved in the business of mining of bauxite, as well as an importers and exporters of goods and materials.

"The Term Sheet is also not expected to have any material effect on the earnings per share, net assets and gearing of DBhd for the financial year ending Dec 31, 2020 as the bauxite mining operation is only expected to commence operation in 2021," it said.

"However, the Term Sheet is expected to contribute positively to the earnings of DBhd Group during the duration of the Definitive Contract period beginning financial year 2021, when the bauxite mining operation starts operation," it added.