Minetech Resources unit inks 21-year power deal with TNB

PETALING JAYA: Minetech Resources Bhd's 70%-owned subsidiary Coral Power Sdn Bhd has entered into a 21-year power purchase agreement (PPA) with Tenaga Nasional Bhd (TNB) in relation to the generation and sale of solar photovoltaic energy to TNB's grib system at the Pantai Remis main distribution sub-station.
The solar photovoltaic energy will be generated from its 9.99 MWac solar photovoltaic energy generating facility, which is to be located at Pengkalan Baharu, Manjung, Perak.
The project is estimated to cost RM62 million, which will be financed via a combination of borrowings and shareholders' equity.
Minetech said in a stock exchange filing that the project which is being undertaken pursuant to the second phase of the large-scale solar open tender undertaken by the Energy Commission, will be one of the first systems in Malaysia to utilise floatation devices on a pond.
It's also part of the group's strategy to diversify the earnings base by including renewable energy, which it views as a stable source of recurring revenues. The project is expected to contribute positively to Minetech's earnings and net assets in 2020.
The stock gained 5% to close at 10.5 sen with 70,000 shares traded.