27th January, 2015
KUALA LUMPUR (Jan 27): Benalec Holdings Bhd has finally obtained approval from the Department of Environment (DoE) to carry out reclamation works for its Tanjung Piai Integrated Petroleum & Petrochemical Hub project.
In a filing to Bursa Malaysia this evening, Benalec (fundamental: 1.65; valuation: 1.2) said the Detailed Environment Impact Assessment Study (DEIA) — submitted jointly by its 70%-owned subsidiary Spektrum Kukuh Sdn Bhd and State Secretary, Johor (Inc) — had been officially approved by DoE on Jan 23.
The DEIA approval is valid for two years from the date of the letter of approval from DoE.
This confirms a report by The Edge Financial Daily on Jan 19, which stated Benalec could soon obtain the DoE approval for Tanjung Piai, as the neighbouring Forest City development by Country Garden Pacific View Sdn Bhd had already obtained DoE approval earlier this month.
The Tanjung Piai project is located off Tanjung Piai, Johor, close to Jurong Island, Singapore, and will be built on reclaimed land measuring over 3,485 acres.
With this approval, Benalec said it is now targeting to commence the project’s phase one works in February.
“The reclamation works of Phase one of the proposed project shall include the construction of oil terminal, construction of jetty, bridge linking the island to the mainland and dredging,” the filing read.
“This approval represents a major milestone for the Benalec group and takes the group one significant step closer to the realisation of the group’s business plans, in sync with the country’s avowed objective of establishing itself as a storage and trading hub in the Asia Pacific region,” Benalec said today.
Benalec was traded six sen or 8.33% higher at 78 sen today, with 8.68 million shares traded. It has a market capitalisation of RM575.24 million.