Brazil’s Vale lands Manjung deal

By Loong Tse Min

It agrees to buy 165 hectares from property developer KYM
PETALING JAYA: Vale International SA, the world’s second largest diversified metals and mining company, has agreed to buy 16.5ha in Manjung, Perak, from property developer KYM Holdings Bhd.
The deal is believed to be related to recent statements by the Perak government of a RM9bil South American investment in an iron ore centre in the state.
KYM in a filing with Bursa Malaysia yesterday said Brazil’ s V ale had an option to buy another 305.95ha, putting the total amount of land available to Vale at 471.46ha in Manjung.
KYM is proposing to sell the 165.5ha for RM 101.9mil cash, and the 305.95ha for RM9 3.8mil cash.
The land comprises 29 parcels with 81 years’ lease remaining.
KYM had last month suspended trading in its stock pending an announcement but later announced that its proposed disposal of land of similar size in Manjung had not concluded.
The land is currently approved for resort development comprising an 18-hole golf club known as Teluk Rubiah Country Club, a 54-room chalet development known as Teluk Rubiah Resort and 142 bungalow lots.
The sale of the land and options is being made through KYM’s 54% subsidiary Harta Makmur Sdn Bhd.
KYM said the proposals would enable the group to reduce its bank borrowings of RM209.7mil as at Jan 31, 2009, unlock the value of its investment in properties and streamline its property asset base.
The proposals were expected to be completed by the fourth quar ter this year, it said.
Vale was quoted in a Reuters report in June last year as saying that it favoured Malaysia for a US$1bil South-East Asian “iron ore pelletising project.”
Perak Mentri Besar Datuk S eri Dr Zambry Abd Kadir had on Wednesday said that a South American multinational was investing RM9bil in an iron ore dis tribution centre for Asia in Perak.
He had said that a 526ha site in Manjung had been earmarked for the project, with the built-up area occupying a third of the site with the remainder acting as a buffer zone.
Zambry said the South American company would inject a further RM5.6bil in the next two phases and that the project was in the final stages of discussion.
Perak had been selected for its direct access to international waters and the company saw the state as a gateway to Asia, he said.