by ASILA JALIL/ graphic by MZUKRI
MINETECH Resources Bhd is expanding operations into engineering, procurement, construction and commissioning (EPCC) as well as the energy segment, with potential contracts worth RM1 billion in the pipeline.
Chairman Datuk Awang Daud Awang Putera said the projects are yet to be announced but are already in the final stage of negotiations.
Among the projects planned to include an expansion of the group’s operations in Kazakhstan.
“During the Movement Control Order (MCO), we had discussions about the pipeline with Kazakhstan. It is more towards platform upgrading and we will explore development construction in Kazakhstan,” he said after the launch of the group’s new logo in Petaling Jaya, Selangor, yesterday.
The firm recently entered into a memorandum of understanding (MoU) with Kazakhstan-based Hadid Oil & Gas LLP for potential business opportunities in the oil and gas (O&G) sector and EPCC.
Minetech CFO Abdul Farid Abdul Kadir said the firm’s investment in Kazakhstan is expected to amount to at least US$30 million (RM125.1 million).
“The group’s penetration into Kazakhstan is part of the geographical diversification, rather than just focusing on Malaysia. We are not going there just for the O&G segment although that is our main purpose, we also want to tap the EPCC market in Kazakhstan,” he said, adding the group also intends to set up a company there when the collaboration materialises.
Currently, the firm has active tenders amounting to RM1.2 billion, with secured contracts totalling RM120 million.
Minetech is principally involved in quarrying services, construction and property as well as premix and bituminous products.
The diversification into EPCC and energy is expected to bring positive growth into the company’s earnings, Abdul Farid added.
For the year to date, the group’s revenue stands at RM17 million with an orderbook of RM113 million.