KUALA LUMPUR (March 31): JAG Bhd said the group has entered into an agreement with Bank Negara Malaysia (BNM) for the purchase and meltdown of cupronickel and nickel raw metals as scrap from the central bank.

In a filing with the bourse, JAG said BNM had in September last year undertaken a request for proposal by inviting prospective companies to participate in the scrap disposal plan.

JAG said its unit Jaring Metal Industries Sdn Bhd (JMI) was subsequently informed that it was successful in the exercise.

JAG said the total value of the agreement is “significant” in terms of the procurement value to the company for the financial year ending Dec 31, 2022, but did not state any amount.

It added that there is no tenure stipulated in the agreement, and either one of the parties could terminate the agreement by providing relevant notice.

“JMI, being a total waste management company, depends heavily on its sourcing capability as the company performance is dependent on the volume of raw materials procured, where precious metals will be duly extracted and disposed of in the commodity market.

“Formal purchase contract with the suppliers is essential to the company, which will secure and enable JMI to receive regular supply of waste,” it said.

JAG’s share price closed down one sen or 3% at 32.5 sen on Thursday (March 31), giving a market capitalisation of RM206.1 million.