Displaying items by tag: Makin Teguh

Malaysia: Borneo Oil has entered into a conditional share sale agreement with Makin Teguh's 45% owner Global 2332 to enlarge its stake in the cement company by 31%, to 60%. Borneo Oil has proposed a private placement to raise US$11.3m towards funding the US$21.2m deal. It previously completed a US$4.65m shares issue on 26 October 2022. Bernama Daily Malaysian News has reported that Makin Teguh plans to commence operations at its 220,000t/yr Sabah integrated cement and clinker plant in early 2023. It owns two limestone mines, with total reserves of 14.4Mt.

Malaysia: Makin Teguh and Borneo Oil have held a ceremony to mark the firing up of the kiln at the 0.23Mt/yr ILPP cement plant being built in Sabah. The new plant is next to a limestone quarry owned by Borneo Oil and it is set to further benefit from the oil company’s other limestone assets via long term supply contracts, according to the Borneo Post newspaper. Borneo Oil increased its stake in Makin Teguh to 38% in May 2022.

A China-based supplier has built the new plant. It includes a waste heat recovery (WHR) unit and it reportedly the first integrated cement plant in Malaysia to use alternative fuels such as heavy fuel oil derived from refined recovered oils, palm kernel shells and bio char.

Malaysia: Investment holding company Borneo Oil has concluded a deal with MT 23 Resources for the acquisition of a 22% stake in Makin Teguh.The deal will bring Borneo Oil's total holding in the cement company to 38%. Makin Teguh is in the process of establishing an integrated cement plant in the state of Sabah.

Borneo Oil said “There is synergy between the group's existing limestone quarrying business operations and Makin Teguh's clinker and cement plant. The outlook for Sabah's clinker and cement industry is favourable, given the high cement prices in Sabah compared with the rest of Malaysia and its proximity to the East ASEAN Growth Area." It added “The Covid-19 shutdowns in 2020 and 2021 created an unprecedented urgency for Sabah to become more self-reliant in various sectors of economic importance. Sabah can no longer afford to rely on 100% imported clinker and cement, and, therefore, the setting up of a clinker and cement plant in Sabah is timely.”

Malaysia: Borneo Oil has increased its investment in the upcoming ILPP cement plant in Sabah to US$12m. The oil company has signed a deal to buy a 19.5% stake in the cement company from Makin Teguh. Borneo Oil previously bought shares from Makin Teguh in late 2021. The company said it is making the move to benefit from a positive outlook for the cement sector in the Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area. It estimates that Sabah has a demand of 1.2 – 1.4Mt/yr of cement.

Borneo Oil says it is the largest private owner of limestone reserves of cement grade quality in Sabah. The ILPP plant is located next to a limestone quarry owned by Borneo Oil and a long-term supply contract for the unit is already in place. The ILPP plant will have a cement production capacity of 0.2Mt/yr when it is completed. Commissioning of the plant is scheduled for the third quarter of 2022. The owners say it will be the first integrated plant in Sabah. It will also be the first micro-cement plant in Malaysia that will use heat recovery and a mixture of fuels, including heavy fuel oil and biomass such as a palm kernel shells.