Borneo Oil increases investment in Sabah cement plant

Borneo Oil Bhd increased its investment to MYR50.7m (US$12m) in Sabah’s first integrated clinker and cement plant, which is expected to be commissioned by the 3Q22. The plant is owned by Makin Teguh Sdn Bhd.

Located in Lahad Datu the new plant has a capacity to produce 720tpd of Portland-grade cement. It is the first micro cement plant in Malaysia to use environmentally friendly technologies such as waste heat recovery and a fuel mix consisting of heavy fuel oil and biomass fuels including palm kernel shells. In addition the plant uses rain water and recycled water to reduce the overall carbon footprint.

Borneo Oil is Sabah’s largest private owner of limestone reserves of cement-grade quality and has heavy invested in the resource. Its planned increased investment will be via the acquisition of 19.6m shares in MT 23 Resources Ltd, representing 19.5 per cent of the existing equity interest in Makin Teguh. MT 23 Resources owns a 29.93 per cent stake in Makin Teguh.