Borneo Oil acquires quarry for RM47m via sublease

PETALING JAYA: Borneo Oil Bhd’s wholly owned subsidiary Borneo Oil & Gas Corporation Sdn Bhd is acquiring a quarry measuring 5.378ha in Lahad Datu, Sabah, for RM47 million as part of an on-going expansion plan into limestone mining and related activities as well as to export marble blocks.

The group’s board of directors said in a Bursa filing, the acquisition which will be financed with internal funds, was done in the form of a sublease for a lease period of 30 years.

The parcel of land located in Ulu Segama, in Lahad Datu District has a reserve of 6.27 million metric tons (MT).

Marble blocks extracted from the quarry will be exported while the balance of resources to be used for limestone aggregates and related products.

The group is also of view that there is a great demand for aggregates and other construction material in Sabah with the ongoing construction of the Pan Borneo highway.

“With the acquisition, the company together with its existing land bank of limestone reserves held for long term investment shall become a substantial player in the supply of high grade limestone resources in Sabah,” its board of directors said.

While the acquisition will not impact its earnings, it is expected to contribute positively for future earnings.

The company’s closed unchanged at eight sen with some 14.5 million shares changing hands.

Source: The Sun Daily

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