Hong Lai Huat enters JV to explore, mine mineral resources in Cambodia

PROPERTY developer Hong Lai Huat Group has inked a joint venture (JV) agreement with HSC Group to explore and mine mineral resources at the former's mixed-use agricultural hub in Cambodia.

Following the signing of the agreement, HSC Group will obtain local regulatory approval required for the mining operation, which is estimated to commence from the following month, the group said in a bourse filing on Monday (Oct 18). (see amendment note)

The mainboard-listed group expects the JV will generate long-term revenues from the group's Cambodian assets.

Hong Lai Huat general manager and executive director Ong Jia Jing said: "This joint venture is keeping up with the group's stated strategy and ambitions which will complement the group's existing pipeline of projects in Cambodia despite the challenges brought by the Covid-19 pandemic."

The group previously said it would design, build and operate a mixed-use agricultural hub in Cambodia with a total land size of about 10,000 hectares.

Called the Cambodia-Singapore Agriculture Hub, it would include zones for value-added food-processing factories, warehousing facilities and a logistics hub, renewable energy, livestock farms, construction materials, plantations, aquaponics, water treatment treatments, as well as commercial and community-living concepts.

Shares of Hong Lai Huat closed flat at S$0.095 on Friday.

Amendment note: An earlier version incorrectly stated that Hong Lai Huat will obtain local regulatory approval required for the mining operation, when it is in fact HSC Group.

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