Friday 29 Mar 2024
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KUALA LUMPUR (Feb 19): News that the moratorium on bauxite mining in Kuantan will not be extended beyond March 31 lifted shares of WZ Satu Bhd and IJM Corp Bhd, which are involved in the industry.

WZ Satu, which is involved in mining of the material, saw its shares opening at their intra-day high of 40 sen, up eight sen or 25% from yesterday's close of 32 sen.

At 4.45pm, the counter pared some gains at 36.5 sen, still up 4.5 sen or 14.06% with 6.99 million shares traded for a market capitalisation of RM169.79 million.

Meanwhile, IJM — which owns a 60% stake in Kuantan Port where the material is exported from — saw its shares rise nine sen or 5% to RM1.89, with 4.71 million shares traded.

The decision by Putrajaya was announced by Water, Land and Natural Resources Minister Dr Xavier Jayakumar yesterday. It is expected that bauxite mining and exporting will resume from April onwards.

Xavier, speaking to reporters during a visit to the bauxite storage areas at the Kuantan Port, said the operations will continue due to the lucrative returns to the state government, although it will undergo more stringent standard of procedures "to preserve the environment".

Kuantan MP Fuziah Salleh responded by urging the government to be 100% sure that the lifting of moratorium will not cause previous environmental problems to reoccur in the area, such as pollution of heavy metals from the mine into surrounding rivers and bodies of water, Free Malaysia Today reported.

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