KUCHING: Property developer Ibraco Bhd is expanding its quarry operation after securing a licence for a new quarry land in Serian, Sarawak.
Wholly-owned subsidiary Sekitar Gemilang Sdn Bhd (SGSB) has formed a joint venture with Kebajikan Anak-Anak Yatim Sarawak Charitable Trust (Peryatim) to operate the new quarry measuring about 100ha at Gunung Sinmajau, Serian-Tebedu.
Ibraco is transferring 30% shareholdings in SGSB for free as a gift to Peryatim to fulfil part of the condition precedent in the approval of the quarry licence by the authorities.
This reduces Ibraco stake in SGSB to 70%, with Peryatim holds the remaining 30% equity interest.
It is managed and operated by a board of trustees appointed by Sarawak Chief Minister.SGSB is expected to invest RM25.4mil to set up a new quarry plant, according to Ibraco, which is also involved in major construction projects, in a recent filing with Bursa Malaysia.
Of the allocation, RM20mil will be used to purchase plant and equipment, RM5.2mil for civil and infrastructure work and RM200,000 to set up a building and workshop.
Ibraco ventured into quarry operation which began as a new revenue stream contributing about RM11.1mil to group revenue in 2020.Beside its core property development, Ibraco’s construction arm is undertaking the new Mukah Airport project in central Sarawak for RM302.6mil, scheduled for completion and handover to the authorities next week, and a RM44.9mil project under the Sarawak Water Supply Grid programme.
Sarawak experienced an acute shortage of quarry aggregrate and quarry sand in 2018 following a steep spike in demand from the RM16bil Pan Borneo Highway project, according to Cahya Mata Sarawak Bhd (CMS).
The unprecedented shortage was then anticipated to continue for a few more years with the implementation of two more mega infrastructure projects – Sarawak second trunk road and coastal highway.
Following the change in Sarawak government quarry licensing policy requiring State Economic Development Corp (SEDC) to have a stake in all quarries in the state,
CMS let go of its controlling stake in quarry and premix operations as well as road construction and maintenance businesses to joint-venture partner SEDC.