AcroMeta Group 43F has announced the signing of a non-binding memorandum of understanding (MOU) with PT. Swadaya Buana Makmur (PTSBM) for the supply of high-grade silica sand from West Kalimantan, Indonesia.
Subject to relevant export approvals, a new subsidiary set-up for the proposed business will aim to obtain up to one million tonnes of low iron silica sand with a guaranteed quality of 99.5% purity annually, worth an estimated US$39 million ($52.62 million) on the open market.
According to AcroMeta, demand for high-grade silica sand from industries including biotechnology, electronics and pharmaceuticals is increasing due to its use in the manufacturing of precision glass instruments, ophthalmic lenses and LCD screens.
In construction, it is also the main structural component in construction products such as flooring, mortars, cement, roofing shingles and asphalt.
AcroMeta is currently speaking with potential international buyers before entering into formal offtake agreements with PTSBM. Should both parties enter into definitive agreements, the new subsidiary will target to commence its first trade by Jan 15, 2024.
Says group executive chairman Levin Lee: “The MOU with PTSBM is a synergistic opportunity given the group’s deep expertise in specialist engineering services as we seek to broaden the group’s revenue stream. AcroMeta will continue to capture new business opportunities to grow and create shareholder value for its investors.”
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Shares in AcroMeta closed 0.2 cents, or 8.7% up, at 2.5 cents on Nov 6.
