KUALA LUMPUR (Aug 14): Chin Hin Group Bhd has inked a 10-year coal ash offtake agreement with Tanjung Bin Power Sdn Bhd to collect coal ash from the latter's 3X700MW coal-fired power station in Johor, for its production of potential green concrete products.

The agreement was inked via G-Cast Concrete Sdn Bhd, Chin Hin's indirect wholly-owned unit that is primarily engaged in the manufacturing and sale of precast concrete products.

Tanjung Bin Power's plant is located at Tanjung Bin, in Johor. Tanjung Bin Power is a subsidiary of Malakoff Corp Bhd.

"The agreement is condition upon, among others, G-Cast obtaining all necessary clearances, authorisations, approvals and permissions required for any dealings with the coal ash, in accordance with the requirements of the Malaysian laws," said Chin Hin.

"Once all the conditions have been met, the agreement shall be effective and valid for a period of 10 years, with an option to extend for additional three years, or any period to be agreed by both parties," it said.

Coal ash is a by-product from the combustion of Tanjung Bin Power's coal fired power station plant.

"The agreement is not expected to have any effects on the share capital and shareholding structure of the company. However, it is expected to have positive contribution to the earnings per share, net assets per share and gearing of the Chin Hin Group based on potential green product sales by G-Cast," said Chin Hin.

Chin Hin's shares slid 1.92% or 1.5 sen to close at 76.5 sen today, after 1.64 million shares were traded, giving it a market capitalisation of RM420.8 million. The stock has retreated near 40% in the past 12 months.

Malakoff Corp's share price was in turn unchanged at 97.5 sen, after about 2.3 million shares changed hands, which valued it at RM4.79 billion.