SDB diversifies back into mining

PETALING JAYA: Selangor Dredging Bhd (SDB) is diversifying back into the mining sector with the acquisition of a 20% stake in Webcon Mining Sdn Bhd (WMSB) for RM20 million cash.

SDB’s wholly owned subsidiary SDB Connect Sdn Bhd has entered into a share sale agreement with WMSB director and shareholder Datuk Seri Chee Yew Fei for the exercise.

The other directors of WMSB are Tan Seng Kim, Mohamed Rosli Shahin and Yeow Boon Ban. The other shareholders are Greger International Sdn Bhd and Webcon Sdn Bhd.

WMSB has obtained rights to mine, extract, excavate and sell iron ore from Lembaga Tabung Amanah Warisan Negeri Terengganu over two plots of land, namely in Mukim Jerangau and Mukim Besul, both in Dungun, Terengganu.

The purchase price was agreed on a willing buyer and willing seller basis after taking into consideration the total measured amount of iron ore deposit within the mining lands, which is no less than six million tons. SDB will use its own funds to pay for the amount.

“The board of SDB is of the view that the acquisition represents a strategic and significant entry for SDB into the mining sector. The acquisition is part of SDB Group’s strategic expansion and diversification into other sectors,” SDB said in a stock exchange filing.

For over two decades, SDB’s sole business was tin mining. It was the first Malaysian company to construct and operate a dredge.

It operated two dredges in Dengkil, Selangor and the second dredge, constructed in 1971, was the largest and most advanced dredge in the world.