KUCHING: Samalaju Industries Sdn Bhd and Malaysian Phosphate Additives Sdn Bhd (MPASB) have made little progress on matters related to their plan to set up a joint-venture integrated phosphate plant in Bintulu.
The parties have mutually agreed to extend the memorandum of understanding (MoU) on the proposed project from Dec 31.
The MoU signed six months ago could be terminated by either party giving the other a one-month notice, Samalaju Industries’ parent company, Cahya Mata Sarawak Bhd (CMSB), told Bursa Malaysia.
Giving an update on the proposed project, CMSB said Samalaju Industries and MPASB were currently negotiating the terms of their joint venture agreement.
The parties had said earlier that they might set up a special purpose vehicle to undertake the project with indicative equity structure of 60:40 for MPASB and Samalaju Industries.
They are also negotiating with Sarawak Energy Bhd on the term sheets for the supply of 200MW of power which, according to them, are expected to be finalised in the coming months.
The parties are still awaiting approval of their application for a piece of land with port frontage at Samalaju for the project.
The proposed project’s factory, which will have an annual production capacity of about 500,000 tonnes, is estimated to cost them RM850mil at current rate.
MPASB makes various grades of food and feed phosphate.
Meanwhile, CMSB has continued to buy back its own shares. Its latest purchase of 60,000 units priced between RM3.27 and RM3.30 was on Dec 7.
This has increased its treasury shares to more than 6.57 million units or 1.98%.