KUALA LUMPUR (Oct 9): Aluminium and stainless steel kitchenware marker CAM Resources Bhd said it is not proceeding with its planned seven megaWatt (mW) per hour renewable electrical energy power plant in Taiping, Perak.
The company said in an exchange filing today that its board of directors, after due consideration and further reassessment on the project's feasibility, decided to not go ahead with the project and will surrender the approved feed-in tariff (FiT) quota for the project to the Sustainable Energy Development Authority (SEDA).
CAM Resources said the cancellation was mainly to do with costs and its lack of expertise.
"The decision to cancel the project is due to the increment on the total investment consideration of the project, which has reduced the rate of return on investment, and higher investment risk and business risk due to the lack of proven track record and lack of security in long-term fuel supply as well as lack of technical expertise," it explained.
CAM Resources is principally involved in the manufacturing and trading of aluminium, stainless steel, plastic and melamine kitchenware, besides the manufacturing and trading of crude palm oil and other palm products.
As the project has not commenced, the cancellation of the project is not expected to have any material effect on its earnings and net assets per share, gearing, share capital, or substantial shareholders' shareholdings for the financial year ending Dec 31, 2019.
On Nov 11, 2016, CAM Resources said its wholly-owned subsidiary Saluran Suriamas Sdn Bhd has received SEDA's FiT approval for the plant for a 16-year period.
Later in June 2017, the company said its other subsidiary Future Atlas Sdn Bhd obtained SEDA's green light for a 2mW biogas plant to sell renewable energy to Tenaga Nasional Bhd for 16 years.
The stock closed 1.5 sen lower today at 23.5 sen, bringing a market capitalisation of RM44.44 million.