KUALA LUMPUR, March 24 — Yong Tai Bhd’s wholly owned subsidiary, YTB Land Sdn Bhd has been appointed as the sole and exclusive gold mining operator to perform and undertake exploration and exploitation works on an area covering 100 hectares in Bukit Kenderak, Ulu Jelai in the Lipis District, Pahang.

In a statement today, the group said the mining lease is co-owned by Tengku Fahad Mua’adzam Shah ibni Almarhum Sultan Ahmad Shah Al-Musta’in Billah and Amazing Logic Sdn Bhd.

Yong Tai chief executive officer Datuk Wira Boo Kuang Loon said the appointment is a golden opportunity for the group to diversify away from its property development and tourism business, which has been severely affected by the Covid-19 pandemic.

"We are proud to be appointed as the sole and exclusive gold mining operator for the land by our existing joint-venture partner in our property development project. This shows the confidence that our partners have with our management.

"A brownfield project is also a viable option for us as it offers a faster return at a lower cost by using existing infrastructure,” he said.

Yong Tai said the mining agreement is valid until May 11, 2025 for the initial term and the group could apply for an extension of the mining lease for an additional period of five years if the gold deposits in the land are not exhausted.

"The mining area was in operations over the last five years with proven gold mined, giving a better exploration database and detailed geological models, which translated into reduced risks and huge discount on capital costs.

"Given the average gold price of around RM225,000 per kilogramme (kg), the company is set to record a revenue of RM4.5 million per month if the mining activities run at the estimated average capacity of 20 kg,” it said. — Bernama