$AUMAS (0098.MY)$ The issue of misconduct by Wulersdrof Resources S/B, a subsidiary of AUMAS Corporation, has been raised by shareholders. The following issues were discussed...
The absence of approval for the Environmental Impact Assessment (EIA REPORT) for Wulersdrof Resources is indeed a serious violation of government law.
The confusion surrounding the permit approval for Wulersdrof Resources' gold mining operations lies in the fact that it did not follow the standard operating procedure (SOP) for OMS applications due to the lack of an EIA report, which is required for OMS approval.
Concerns from AUMAS shareholders.
An incident involving 110kg of gold bars detained at TAWAU airport because they were deemed illegal and lacked the necessary customs documentation.
The gold bars returned to AUMAS Corporation have raised questions among AUMAS shareholders about why they were detained and whether they were illicit.
The current capacity of the plant operated by Wulersdrof Resources is between 50,000 to 60,000 tons of ore (mineral ore) for processing.
Last year's record showed that Wulersdrof Resources did not exceed 30,000 tons in its operations.
The issue is, why is it necessary to build a new high-cost plant amounting to RM40 million?
The allocation of RM40 million for the construction of a new plant will involve shareholders' funds. In fact, questions have been raised - the new plant is being built on a sublease land agreement between Wulersdrof Resources and Southsea Gold.
Does this mean that the currently operational plant indeed has ownership status issues?
The land where the current plant is located belongs to Southsea Gold, hence Wulersdrof Resources is building a new plant to replace it.
Clearly, this does not represent an increase in production since it knows that the current plant’s land does not belong to Wulersdrof Resources.
The relationship between Wulersdrof Resources and Southsea Gold is also problematic, leading to an increasingly complicated situation.
Concerns about environmental damage around the area are worrying because Wulersdrof Resources made a major mistake: the WALL of the TAILINGS POND broke, and the company was ordered by government enforcement agencies to halt operations for one month...
There is no guarantee regarding the protection of the surrounding natural environment of Southsea Gold's land from Wulersdrof Resources, especially concerning Class 1 protected forests and rivers in the surrounding areas...
Reviewing back on 10/MAY/2023, the board of directors of BAHVEST S/B at that time announced an agreement to compensate Southsea Gold for land use from April 2023 to 2017, totaling 13 million.
5b.. Following the announcement and subsequently... both parties sat together to negotiate an agreed payment method in two phases within 90 days: the first phase of 6 million paid upfront... and 7 million later according to the agreement schedule.
5c.. Given that the second phase of the agreement was not fulfilled, and compensation from 2023 to 2026 also needs to be renegotiated but remains unaddressed... all this indicates a lack of sincerity in resolving issues, causing various problems affecting obstructed relations.
5d.. Issues related to the relationship include several unfulfilled promises, prompting the Southsea Gold board of directors to potentially decide to cancel the sublease between Wulersdrof Resources and Southsea Gold.
5e.. The cancellation of the Wulersdrof Resources sublease is based on numerous misconducts as follows:
(a).. Lack of EIA report approval for WULERSDROF RESOURCES
(b).. Lack of adherence to the SOP for OMS approval application due to the absence of an EIA report to support the application.
(c).. Inability to finance the conservation of Class 1 forest reserves and rivers.
(d).. Promised compensation not fulfilled, specifically the second phase balance of RM7 million still pending for court resolution.
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