Kuala Lumpur — KYM Holdings Bhd may axe its plan to venture into iron ore mining in Aceh, Sumatra, after the government there imposed an export ban on the product, a key official said.
KYM chief operating officer Allan Chin Kong Yaw said the plan would also now require a bigger investment than estimated after the government wanted the venture to process the raw materials in Aceh instead.
“The government says we can’t export the iron ore. It wants us to process the raw materials there and that will require huge investments from us,” he said.
Chin told Business Times recently that KYM would seek legal advice on the matter.
“We hope to find a solution. There is a huge potential in Aceh. But if we think the venture is not viable because of the huge investments needed, we will not proceed,” Chin said.
Aceh is rich with iron ores, minerals that contain high iron content from which iron can be extracted.
KYM, controlled by its executive director Datuk K.Y. Lim and his family, is seeking to diversify its income base and has chanced upon the iron ore mining venture in Aceh with mining concession holder, PT Samana Citra Agung.