KUALA LUMPUR (Aug 14): Meta Bright Group Bhd’s (MBGB) wholly owned subsidiary FBO Land (Setapak) Sdn Bhd has entered into a heads of agreement (HOA) with G.E. Mining Sdn Bhd for the proposed appointment of FBO Land to provide renewable energy solutions.

According to filings with Bursa, G.E. Mining is a private limited company and principally engaged in the mining of iron ore, tin, gold and other natural resources.

Notably, the executive director of Meta Bright Datuk Lee Wai Mun is also a director and major shareholder of G.E. Mining, thus, the group said that Lee has abstained and will continue to abstain from all board deliberations and voting in respect to the proposed appointment.

Lee carries an 18.33% stake in G.E. Mining, whilst also having a 54.82% indirect interest in FBO Land via Leading Ventures Sdn Bhd.

MBGB, formerly known as Eastland Equity Bhd, said in a press release on Monday (Aug 14) the renewable energy solution to be provided by FBO Land is a grid-connected photovoltaic (GCPV) system of capacity no less than 2MW. FBO Land will have the responsibility of designing, developing, supplying, installing, testing, commissioning, operating and maintaining said system.

Meanwhile, G.E. Mining shall procure all relevant approvals, consents, authorisations or permits to assist FBO Land with the installation at the project site which will be determined later.

No contract value was stated though Meta Bright said that should the proposed appointment materialise, it is expected to contribute positively to the future earnings of the group, but will not have any material effect on the earnings per share, net assets and gearing of the group for the financial year ending June 30, 2024.

“The agreement with G.E. Mining represents a pivotal step in Meta Bright’s journey towards a sustainable and innovative future. The establishment of this strategic relationship to assist G.E. Mining source clean power for their energy-intensive operations exemplifies the commitment of GE to improving the sustainability of their business practices,” said Meta Bright executive director Derek Phang.

Phang added that the specific terms of its definitive agreements with G.E. Mining will be informed by feasibility studies to determine the final capacity of the GCPV system, as well as FBO Land’s scopes.

“We take immense pride in this landmark partnership, as we believe the demonstration of this renewable energy solution will resonate with other players in the mining sector. They face possible environmental, social and governance (ESG) pressure that affects, among other things, their ability to competitively access debt and capital markets,” Phang further commented.

At the counter close, shares of Meta Bright rose half a sen or 2.70% to 19 sen, valuing the group at RM434.23 million.