KUALA LUMPUR (June 29): Selangor Dredging Bhd’s indirect 31%-owned associate Fortress Minerals Ltd said its wholly-owned subsidiary Fortress Mining Sdn Bhd's (FMSB) mining activity resumption will be delayed again in view of the Malaysian government’s latest decision to maintain its Covid-19 pandemic-driven nationwide total lockdown under Phase 1 of the National Recovery Plan or Pelan Pemulihan Negara (PPN) beyond yesterday.
In a statement to Singapore Exchange Ltd yesterday, Fortress Minerals chief executive officer (CEO) Datuk Seri Ivan Chee Yew Fei said that at this stage, the group, which undertakes iron ore mining operations in Terengganu’s Bukit Besi, is unable to quantify and determine the extent of the financial impact of the lockdown on the company’s earnings for the financial year ending Feb 28, 2022 (FY22).
Chee said Fortress Minerals "will continue to have in place the appropriate health, hygiene and distancing measures" to keep its staff safe and ensure operations can resume at full capacity once the total lockdown is lifted.
"The board will continue to monitor the evolving situation, and will make the appropriate announcement(s) as and when there are material developments on the matter,” he said.
Chee said that according to the latest update from the Ministry of International Trade and Industry (MITI), the iron and steel sectors are among the manufacturing and manufacturing-related services sectors allowed to keep their operations running in a “warm idle” condition.
"As such, the company’s wholly-owned subsidiary, namely FMSB, is allowed to keep its mining operations operating in a 'warm idle' condition throughout the effective period, i.e. operating with a 10% workforce capacity, as defined in the announcement by MITI on May 30, 2021, subject to MITI’s approval,” he said.
Chee said FMSB on May 30, 2021 obtained such approval from MITI.
"As of the date of this announcement (June 28, 2021), there has been no updates or changes from MITI in relation to the list of manufacturing and manufacturing-related services sectors allowed to keep their operations operating in a 'warm idle' condition during the extended effective period. As such, FMSB will continue to keep its mining operations operating in a 'warm idle' condition during the extended effective period unless MITI revises the list and/or its policies.” he said.
Property developer Selangor Dredging via 100%-owned SDB Mining Sdn Bhd holds a 31% stake in Fortress Minerals, according to Selangor Dredging's latest annual report.
Selangor Dredging shares had not been traded on Bursa Malaysia as of the time of writing today.
At Selangor Dredging’s latest closing share price of 66 sen, the company had a market value of about RM281.25 million based on its 426.13 million issued shares.