19/02/2008 (The Star Online), Kuala Lumpur - Mentiga Corp Bhd will invest RM25mil to develop 5,000 acres in Sungai Lembing, Pahang, for the planting of oil palm this year.

Chairman Datuk Seri Adnan Yaakob said timber was a “sunset'' industry and that Mentiga wanted to diversify into the plantation sector to reap better profits.

Mentiga has 12,000 acres in Sungai Lembing, of which 3,000 acres have been developed into an oil palm estate. 

In September last year, Mentiga was granted a RM19mil loan from Bank Pertanian Malaysia to develop an oil palm plantation on the land.

At the EGM yesterday, shareholders approved the disposal of 29.39 acres in Kuantan to Pasdec Corp Sdn Bhd for RM9.8mil cash.

Adnan said some RM5mil to RM6mil of the proceeds from the disposal would be used to develop the oil palm estate and the remainder to settle company borrowings.

He added that the company would also be venturing into iron ore mining.

“The State Government had (in September) given us the right to carry out the mining of iron ore in Jerantut and Lipis,'' he said.

Adnan added that given its tight cashflow, Mentiga would either enlist the assistance of an experienced contractor or tie up with another party for the venture.

He said Mentiga had identified some parties but declined to give more details.

On another note, Adnan said the company would also look to settling its debts, which stood at RM14mil as at Dec 31, 2007. 

“We expect to settle our debts by year-end and turn Mentiga into a profitable company after that,” he added.