HLH Agriculture (Cambodia) Co Ltd, a wholly-owned subsidiary of a Singapore-listed Hong Lai Huat Group Ltd, and Cambodia Hei Shi Mineral Co Ltd will join forces for exploration and mining of Cambodia-Singapore Agriculture Hub’s mineral resources in Kampong Speu province.
As reported by The Edge Singapore, a memorandum of understanding (MoU) with an estimated investment value of $20 million was signed to this end on June 8, which lays out a series of steps for the two parties to take over the next three months to enter into a legally-binding agreement.
According to a press release: “Through the MoU, both parties will establish a joint venture [JV] where HLH Agriculture will be responsible for providing the land and allocation of mining rights.
“Cambodia Hei Shi Mineral will leverage on its established mining track record to run the mining operations and be responsible for all costs incurred towards hiring enough skilled labour and personnel, machineries and technical supports, as well as developing infrastructures for mining operations within the operation budget agreed between both parties,” it said.
Hong Lai Huat Group general manager and executive director Ong Jia Jing said mining operations would be under an allocated construction-material zone in the Cambodia-Singapore Agriculture Hub.
“As exquisite natural minerals have been found on our land such as marble and granite, this partnership will enable the group to mine and supply these exquisite natural minerals to meet the market demand and to develop the infrastructures in” the agriculture hub, he said.
“The mineral resources extracted shall also contribute immensely to the growth of the group as well as our shareholders for many years to come,” Ong added.
The JV will build infrastructure, factories and other facilities inside the agriculture hub with the mineral resources produced from the land.
The partnership will create more job opportunities for Cambodians, especially for locals in northwestern Kampong Speu province’s Oral district.
HLH Agriculture will be entitled to 60 per cent of the profit generated from the JV, which will last for 10 years, with an option to renew upon expiration of the term.
On the Singapore Exchange, Hong Lai Huat Group’s share price rose 0.2 per cent to close at S$0.094 (US$0.071) on June 8.