CNMC to cease Kelantan operations in first phase of Malaysia's 'total lockdown'

FOLLOWING the Malaysian government's May 28 announcement of a two-week ban on social and economic activities in the country, CNMC Goldmine Holdings on Monday announced it will temporarily cease all on-site operations in Kelantan.

During the first phase of the nation-wide lockdown from June 1 to 14, CNMC intends to seek clarification with the relevant authorities on whether its operations are considered "essential", as only activities deemed as such by the National Security Council will be allowed during this period.

Certain economic sectors which do not involve large gatherings, and can be subject to social distancing, will be permitted to resume operations should the first two weeks prove successful in reducing the number of daily Covid-19 cases in Malaysia.

This will take place in a subsequent four-week lockdown, following which the Malaysian government intends to revert to the Movement Control Order where almost all economic sectors may resume operations with preventive measures in place.

In its bourse filing, CNMC noted that the Covid-19 situation remains "highly fluid" and that Malaysia' Ministry of Health has yet to determine when the country will move from one lockdown phase to another.

As such, the group said it is "unable at this point in time to ascertain the exact financial impact of these developments on its operations".

The group added that it will continue to monitor the health of its workers in Kelantan and make the appropriate announcements as and when there are material developments.

CNMC shares closed 0.5 Singapore cent or 2.1 per cent lower at S$0.23 on Monday, after the announcement was filed.