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Mirach Energy partners Chinese firm for durian-cropping venture

MAINBOARD-LISTED Mirach Energy said on Tuesday that its subsidiary RCL Kelstar has entered into two exclusive cooperation agreements with Zhejiang Bei Ding Investment Company.

Under each agreement, Zhejiang Bei Ding will partner RCL for a period of 50 years in the development of a multi-storey cropping of durian trees and other suitable crops on about 222 hectares of an agriculture land in Ulu Nenggiri Gua Musang, Kelantan, Malaysia.

The total of 444 hectares (two plots of 222 hectares) of agriculture land forms part of the 2,225 hectares of agriculture land concession held under a joint-venture agreement between RCL and Perbadanan Kemajuan Iktisad Negeri Kelantan.

Following the agreement, RCL will enter into separate sales contracts for a total sum of 12 million Malaysian ringgit (S$3,973,905) with Zhejiang Bei Ding, under which RCL will provide Zhejiang Bei Ding pre-planting management and advisory services.

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Zhejiang Bei Ding will also pay RCL an annual fee in respect of the sales proceeds of the fruits harvested from the durian trees during the contract tenure.

Zhejiang Bei Ding is incorporated in China and specialises in e-commerce, agriculture and tourism, according to Mirach Energy.