PETALING JAYA: Yong Tai Bhd (YTB) has been appointed as the sole and exclusive mining operator to perform and undertake exploration and exploitation works on an area covering 100ha located at Bukit Kenderak, Pahang, via its wholly owned subsidiary YTB Land Sdn Bhd.
The mining lease is co-owned by Tengku Fahad Mua’adzam Shah ibni Almarhum Sultan Haji Ahmad Shah Al-Musta’in Billah and Amazing Logic Sdn Bhd. Tengku Fahad is also YTB’s existing joint venture partner for Impression U-Thant property development project.
The mining agreement is valid until May 11, 2025 for the initial term and that the group could apply for an extension of the mining lease for additional period of five years if the gold deposits in the land are not exhausted.
Given the average gold price of around RM225,000 per kg, YTB is set to record a revenue of RM4.5 million per month if the mining activities run at the estimated average capacity of 20kg.
YTB CEO Datuk Wira Boo Kuang Loon said the appointment is a golden opportunity for the group to diversify away from its property development and tourism business.
“A brownfield project is also a viable option for us as it offers a faster return at a lower cost by using existing infrastructure. We are proud to be appointed as the sole and exclusive gold mining operator for the land, by our existing joint venture partner in our property development project. This shows the confidence that our partners have with our management,” he said.
Under the agreement, the group will pay RM30 million of a base fee to the owners over four years, assuming the monthly gold production is at 20kg of gold per month. For all gold extracted in excess of the 20kg monthly production, 7.5% of the gross value extracted during the applicable month would be paid as an excess fee to the mining lease owners.
YTB will begin exploration works within six months from the date of the mining agreement with an option to extend another three months.
