Mata Brait, CCFH in PNG rubber venture
KUALA LUMPUR: Malaysian project developer Mata Brait (PNG) Ltd and Singapore's CCFH Ltd will jointly develop a sustainable rubber plantation in Papua New Guinea (PNG) with an initial investment worth RM50 million.
The agro-forestry project is expected to generate some RM4.55 billion within 20 years, said Mata Brait director Azam Ismail Bakri.
Azam said the company and CCFH will jointly develop 27,000ha of forest in PNG starting next year and the venture is set to be completed by 2021.
"It is estimated that 1.36 million rubber trees will be cultivated annually over a period of eight years as the logs are to be extracted and harvested in phases," he told reporters after the signing of a memorandum of understanding (MoU) between CCFH and Mata Brait yesterday.
The signing of MoU was witnessed by Deputy Minister in the Prime Minister's Department Datuk Ahmad Maslan and PNG's High Commissioner to Malaysia, Veali Vagi.
Azam said the joint-venture project has obtained approvals from PNG's local authorities for forest clearance, which includes land surveys, environmental impact assessment and other forest working plans.
The joint-venture (JV) company will also adhere to the provisions under PNG's Forestry Act 1992.
Under the MoU, Mata Brait will grant CCFH an equity stake and CCFH will invest in the proposed investment to enable both parties to jointly develop, manage and market the logs as well as undertake an agro-forestry project within the project area.
Mata Brait is backed by Zhun Ling Enterprise Sdn Bhd, which is engaged in the oil palm and rubber plantations, logging and mining businesses.
Meanwhile, CCFH, formerly known as Friven & Co, is listed on Singapore's SGX Sesdaq. It is an investment holding company with key interests in children fashion and bed-linen businesses.
Mata Brait had started its journey in PNG in 2010 by embarking on a JV project with a local partner Binige Resources Ltd. Both companies had sealed an agreement on logging and marketing on December 13 2010 in PNG.
Based on the agreement, Binige Resources appointed Mata Brait as developer and contractor to develop 27,000ha of forest in PNG into an agro-forestry project for a lease period of 99 years.
Binige Resources, a former land owner company, will provide the land for the JV project.
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