KUALA TERENGGANU – The state government says it is not involved in an MoU between China-based CAA Resources and a local firm to mine iron ore here.
It was alleged that CAA Resources, through local firm Capture Bukit Besi Sdn Bhd, had signed an MoU last year in which the latter would acquire 60% of Red Sun Resources Sdn Bhd.
The MoU apparently allowed Capture Bukit Besi to conduct exploration and prospecting activities at Bukit Besi, on land that was said to belong to Red Sun.
Mentri Besar Datuk Ahmad Razif Abd Rahman, in denying such claims, said records at the State Lands and Mines Office showed no such dealing whatsoever with CAA Resources, Capture Bukit Besi and Red Sun Resources.
“This MoU is an agreement between the two firms, and it does not involve the Terengganu government. What is certain is none of the companies has been awarded a permit to mine or conduct any activity in the state,” he said when winding up the debate on the state budget at the State Assembly yesterday.
The New York Times, in an article on Nov 19 titled “Chinese Interests Look to Malaysia for Cheap Iron Ore, and Profits”, quoted CAA Resources owner Li Yang as saying that his firm re-opened the dormant Bukit Besi mines and earned the right to mine it.
Li was also quoted as saying that he was able to get away with a lot of things due to his relationship with politicians and the royalty, claiming that he paid US$100,000 (RM350,000) to help certain individuals gain Datukships.
