KUALA LUMPUR (Jan 3): Tadmax Resources Bhd has received a letter of notification from the Ministry of Energy, Science, Technology, Environment and Climate Change for the company to proceed with the development of a 1,200MW combined-cycle gas turbine (CCGT) power plant in Pulau Indah, Selangor.

In a Bursa Malaysia filing today, Tadmax Resources said the project will be undertaken by the group's project company Tadmax Indah Power Sdn Bhd in collaboration with Worldwide Holdings Bhd and Korea Electric Power Corp. 

"The construction period will be approximately three years and the scheduled commercial (operations) of the CCGT (power plant) is envisaged on 1 January 2024.

“The project will not contribute to the near-term profitability of the group (Tadmax Resources) as it takes approximately four years before commercial operation commences but is expected to contribute positively to the earnings of Tadmax (Resources) upon commencement of commercial operation,” Tadmax Resources said.

Tadmax Resources said today the parties to the project are in accordance to the heads of agreement (HOA) executed on Sept 14, 2018. Under the HOA, Tadmax will hold a 40% equity interest in the project while Worldwide and Korea Electric will own 35% and 25% respectively, Tadmax Resources said.

Today, Tadmax Resources' share trade was suspended since 2.30pm pending the announcement on the letter of notification from the ministry.

Prior to the suspension, Tadmax Resources shares were traded unchanged at 30 sen for a market capitalisation of RM234.99 million.