PETALING JAYA: Advancecon Holdings Bhd’s 51% indirectly owned quarry operator, Spring Energy Sdn Bhd (SESB), has secured an agreement with an approximate value of RM18.8mil to provide quarry operations and related services at a new site in Kinta, Perak.

       The earthworks and civil engineering company said in a statement that it had been awarded this contract by the quarry owner, Aalborg Resources Sdn Bhd.

       It will operate the mine for four years until December 2025.

       “With this new quarry services agreement, SESB now operates at nine quarry sites strategically located in Peninsular Malaysia, hence enhancing our ability to support the growing industry demand for quarry products,” group chief executive officer of Advancecon Datuk Phum Ang Kia (pic) said.

       “Our well-timed acquisition of the majority stake in Spring Energy Resources Bhd (SERB) positions us favourably to capture the resurgence in demand from the construction and infrastructure sectors, as the nation shifts into pro-development mode,” he added.

       Advancecon has a 51% stake in SERB while SERB owns a 100% stake in SESB.

       SESB will be appointed as the sub-contractor to provide quarry development services such as opening access roads and removing overburden, extracting limestones and other related operations to supply quarry owners with products for onward sale, it said.

       “The acquisition also allows Advancecon to enjoy synergistic benefits within the enlarged group through the utilisation of quarry products sourced internally from SERB for Advancecon’s earthworks and road-based infrastructure construction activities,” Phum said.

       As part of its acquisition by Advancecon, SERB would provide a total net profit guarantee of RM12mil over the 24-month financial period across the financial years ending Dec 31, 2022 (FY22) and FY23, with RM6.1mil per year being attributable to Advancecon based on its 51% equity interest.