CNMC subsidiary gets go-ahead to resume gold mining in Kelantan

Janice Heng

Published Tue, Jul 13, 2021 · 09:12 PM

CNMC Goldmine Holdings subsidiary CMNM Mining Group Sdn Bhd has gained approval from the relevant authorities in Malaysia to resume mining operations at its flagship Sokor gold mine in Kelantan, the Catalist-listed gold producer said on Tuesday in a Singapore Exchange filing.

This follows the Malaysian federal government's decision to ease Covid-19 restrictions in Kelantan and four other states from July 5.

Kelantan, where the group's mining operations are based, has met the regulatory thresholds to transition into Phase 2 of Malaysia's National Recovery Plan. The rest of the country is still under the more restrictive Phase 1, said CNMC.

Under Phase 2, economic and social activities can resume, subject to certain limits. In the mining sector, worker capacity on-site cannot exceed 80 per cent. Adherence to stipulated standard operating procedures and safety measures is also required.

CNMC said it will offer updates to shareholders when there are material developments.

The group ceased on-site activities in Kelantan on June 1, during the first phase of the lockdown. On June 28, CNMC had said that it expected the lockdown's extension beyond June 28 to negatively affect its financial performance for the half-year ending June 30.