KUALA LUMPUR (July 23): Advancecon Holdings Bhd (KL:ADVCON) has inked a mining services agreement with Imerys Minerals Malaysia Sdn Bhd.

In a bourse filing on Tuesday, the company said its 51% indirect subsidiary Spring Energy Sdn Bhd will provide a wide range of mining services, which include quarry development and maintenance, drilling and blasting, marble handling and processing, waste management, and environmental protection measures, at the quarry site in Gunung Terundum, Johor.

It said Spring Energy is projected to extract 193,000 metric tons of marble per month with an estimated potential value of approximately RM110 million over the contract period, which is 42 months, and this commences in July with the possibility of an extension upon mutual agreement.

The saliant terms of the agreement include that the contractor must provide suitably trained staff, suitable equipment and consumables, as approved by Imerys Minerals, and as may be necessary to meet its obligations under the terms of the agreement.

Advancecon group chief executive officer Datuk Phum Ang Kia said the contract win reinforces Imerys Mineral’s confidence in Spring Energy’s expertise and track record in the mining and quarrying sector.

"This long-term collaboration will contribute significantly to our group, and further strengthen our position as a leading provider of earthworks, civil engineering, and related services in Malaysia," he said.

Phum said Spring Energy is currently engaged in quarry operations across seven sites in Seremban, Negeri Sembilan; Semenyih, Selangor; Sungai Buloh 1 and 2, Selangor; Tanjung 1 and 2 in Mukim Tanjung Dua Belas, Kuala Langat, Selangor; and Kuantan, Pahang.

In addition to quarry operations, Spring Energy has also secured contracts from China Communications Construction (ECRL) Sdn Bhd for the construction of a stone-crushing plant and subgrade earthworks.