KUALA LUMPUR (Aug 7): Golden Pharos Bhd (KL:GPHAROS) said it has appointed engineering firm GK Vest Sdn Bhd as the implementing partner and project operator for the development of a biochar production facility in Dungun, Terengganu.

The plant will be built on a 1.19-acre plot of land owned by its wholly owned subsidiary GP Plywood Sdn Bhd, said Golden Pharos in a filing with Bursa Malaysia on Thursday.

Golden Pharos is 68.94%-controlled by the Terengganu government, through Terengganu Incorporated Sdn Bhd (60.80%) and Lembaga Tabung Amanah Warisan Negeri Terengganu (8.15%), according to the group's latest annual report.

The project will operate on a revenue-sharing basis, with GK Vest entitled to 80% of the net revenue, while GP Plywood will receive the remaining 20% for the duration of the agreement.

"The revenue sharing arrangement may be subject to periodic review and revision by mutual agreement during the project term, having regard to changes in the operational, financial, and/or regulatory conditions of the project," said Golden Pharos.

As part of the agreement, GP Plywood will facilitate the application and procurement of permits and licences for the project as well as to provide sufficient land and space for the facility and its operations.

Meanwhile, GK Vest will need to secure all required financing for the capital expenditure and operational needs of the project, ensure the facility is operationally ready by Aug 31, 2026, and oversee the carbon programme administration, including the sale of the related environmental products.

"The board of directors of the company is of the view that the group has potential for biochar manufacturing, particularly due to its access to forestry residues from its subsidiaries," the filing read, adding that these underutilised residues can be converted into high-value biochar, "offering a unique opportunity to establish a new income stream".

"With the availability of logs supply and forestry waste, the group is well positioned to tap into both domestic and international markets for biochar, creating a viable and profitable business opportunity," it added.

Shares in Golden Pharos closed unchanged at 17.5 sen on Thursday, giving the group a market capitalisation of RM24.64 million.