Malaysia: Borneo Oil signs US$18m limestone deposit deal

According to reports in the Star newspaper, Borneo Oil has signed a 30-year deal enabling it to mine marble and limestone in Lahad Datu, Borneo.

In an announcement to the Malaysian stock exchange, Borneo oil revealed it had paid MYR80m (US$18m) for the right to mine reserves estimated at 24.5Mt.

The company declared that it is now positioned to become “a substantial player in the supply of high-grade limestone resources”, and noted that Sabah state – in which the quarries are situated – currently imports 1.5Mta of clinker and cement.

Borneo Oil further noted that the construction of a new clinker plant in Sabah was underway and that when operational it would require 800tpd of limestone which might be sourced from the newly-acquired assets.