KUALA LUMPUR (March 19): Total waste management company JAG Bhd has signed a Memorandum of Understanding (MoU) with Empire Mining Sdn Bhd to jointly explore bauxite mining opportunities in Pulau Langkawi, Kedah.

In an exchange filing today, JAG said the MoU is to set out intentions with the possible joint venture between JAG or its nominated subsidiary and Empire Mining, to extract, process, and produce bauxite there.

The parties have agreed to negotiate exclusively with each other for three months from the date of the MoU, and a further three months or more if mutually agreed in writing.

The MoU is not expected to have any material impact on JAG’s earnings, net assets, or gearing, for its financial year ending Dec 31, 2019.

Last week, Malaysia’s Ministry of Water, Land and Natural Resources said the restriction on bauxite mining activity will only be withdrawn once all parties adhere to standard operating procedures.

The Government is expected to hold a public hearing on the matter on April 14 as the current moratorium on bauxite mining activity ends on March 31.

Shares in ACE Market-listed JAG closed half a sen or 9.09% lower today at five sen today, for a market capitalisation of RM75.74 million.