Perak Transit withdraws from mining joint venture, seeks to improve ESG standards

KUALA LUMPUR (Dec 7): Perak Transit Bhd on Wednesday (Dec 7) announced the termination of the agreement it entered into with another company to jointly undertake limestone and silica sand-mining in Perak.

The termination is part of the group’s strategy to improve its sustainable environmental, social and governance (ESG) standards, the Ipoh-based transport terminal and bus operator said in a bourse filing.

“The mining of limestone and silica sand can potentially cause habitat loss, high noise level and dust emission. Additionally, the termination of our mining management operations would also improve our overall corporate governance, as we consider the mining management operations as a non-core business," said Perak Transit.

The agreement was signed in June 2020 between Perak Transit’s wholly-owned unit PTRANS Resources Sdn Bhd and Gemas Perunding Sdn Bhd, a company involved in the business of mining and quarrying limestone products, silica and sand.

Gemas Perunding was to hold a 70% stake in the joint venture company, with the remaining 30% held by PTRANS Resources.

Following the termination of the agreement, Gemas Perunding has agreed to reduce the total project cost payable by PTRANS Resources from RM600,000 to RM18,000, equivalent to 3% of the overall projected limestone and silica land resources located in Kampar, Perak.

PTRANS signs deal with edotco unit

In a separate filing, Perak Transit said PTRANS Resources on Wednesday inked a master framework agreement with edotco Malaysia Sdn Bhd’s 79% subsidiary, On Site Services Sdn Bhd, under which PTRANS Resources will provide construction and engineering services to On Site Services for the construction of telecommunication towers.

“This is in line with PTRANS’ strategy to pursue new business opportunities to increase the group’s revenue stream and enhance the group’s profitability. The agreement also allows the group to diversify its earning base and reduce dependency on existing businesses,” said Perak Transit.

It added that On Site Services wanted to procure a standardised design and common pricing for the supply, construction and commissioning for build-to-suit sites, colocation upgrades, managed service sites and other related work for its operations in Malaysia.

Perak Transit’s share price closed up two sen or 1.57% at RM1.29 on Wednesday, giving the group a market value of RM915.26 million. The stock has climbed 111.5% year-to-date.