Minetech Resources Berhad - Products & Services

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i) Provision of Turnkey Quarry Operation Services

Provision of turnkey quarry operation services are undertaken by the Group’s subsidiary, K. S. Chin Minerals Sdn Bhd. Since inception, K. S. Chin Minerals Sdn Bhd has completed turnkey quarry operation contracts worth approximately RM230 million.

Turnkey quarry operation services include all activities that are focused on the production of aggregates, which involve the following 5 stages:-

Quarry operation begins with the removal of overburden (clearing of vegetation and top soil) using excavators and dumpers in order to expose the underlying bedrock. Removal of overburden is usually carried out simultaneously with quarry face development - creation of adequate working platform to ensure optimum work area is achieved.

After completion of stage 1, drilling machines are used to drill holes in the bedrock. Specification in terms of type of rocks, spacing, depth and size of the drill holes are carefully considered by trained quarry managers. Explosives are then employed by a licensed shot-firer and then discharged by blasting. Fragments of rocks of a maximum size of 30 inches from the blasting are then transported for crushing.

The blasted stone blocks are then dug out and loaded by hydraulic excavators or wheel loaders into dump trucks to be transported to the crushing plant.

At the crusher plant, the blasted rocks are reduced to the desired sizes. The crusher plant usually comprises three sections:-

Primary - crushes blasted rocks to about 6 inches to 9 inches;
Secondary - further reduces size down to below 2 inches;
Tertiary - produces the finished products of either 3/4 inches or 3/8 inches or quarry dust.

Screens are used to separate the stones into uniform size classes in accordance to their end usage, such as roads or building construction.

Finally, the finished aggregates are loaded into lorries by wheel loaders for delivery to customers.

ii) Provision of Specialised Services for the Quarrying Industry and Civil Engineering Works

In addition to turnkey operation services, MRB Group also offers specialised services for the quarrying industry and civil engineering works, undertaken by subsidiary, Minetech Construction Sdn Bhd. Specialised services for quarrying industry involves provision of specific services which otherwise fall under the end-to-end turnkey solutions - to customers who only require certain services (for example, drilling and blasting).

Meanwhile, MRB's civil engineering works mainly involve housing and road infrastructure developments. Civil engineering works, though involve similar services such as drilling and blasting, usually require controlled blasting to minimize potential damage to the existing structures in the vicinity.

Since inception, Minetech Construction Sdn Bhd has bagged civil engineering contracts amounting to approximately RM260 million.

iii) Sales and Marketing of Aggregates

Sales and marketing of aggregates are value-adding downstream activities undertaken by MRB's subsidiaries, Minetech Quarries Sdn Bhd and Diman KS Chin Sdn Bhd. There is a strong domestic demand for aggregates especially for the development and maintenance of road infrastructure, the building and construction industry and in railway infrastructure development and maintenance. Types of aggregates marketed includes:-

Type of aggregates	Size of Aggregates	Usage and Applications
Crusher run	2 inches and below	Base material for road construction and sometimes used as filler.
Aggregate	3/4 inch, 3/8, 1 inch and 1.5 inches	Base material used in concrete, mortar, roadstone and asphalt premix.
Armour Block	1 foot to 6 feet	Used for reclamation and break water works.
Quarry Dust	Dust form	Base material for Premix Products, used as a filler and substitute for sand.
Quarry Waste	By-Product of Quarrying	Base material for housing platform, used as a filler and substitute for sand.
Ballast	2 inch by 3 inch	Coarse stone or gravel laid to form a bed in railway track construction.
Stone Column	2 inch by 3 inch	Used in the filling of stone columns to increase the tolerance of stress and liquefaction of subsurface soils.
6 by 9 Block	6 inch by 9 inch	Used for rubble retaining and drainage walls.

iv) Manufacturing and Trading of Premix Products

MRB's subsidiary, Minetech Premix Sdn Bhd, undertakes the manufacturing and trading of premix products such as:-

Asphaltic Concrete Binder Coarse
Asphaltic Concrete Wearing Coarse
Bituminous Macadam Binder Coarse
Bituminous Macadam Wearing Coarse

The Group currently has 3 manufacturing plant located at Tanjung Malim, Perak and Terengganu, which blends different sizes of aggregates with a pre-determined amount of bitumen and filler or cement for asphalt premix production. The plant has a production capacity of 1,000,000 metric tonnes per year. The premix products are primarily used for road construction and maintenance.

v) Trading of Industrial Machinery Spare parts and Rental of Machinery

MRB's subsidiary, Minetech Industries Sdn Bhd, undertakes the trading of industrial machinery spare parts and rental of machinery to other subsidiaries within MRB Group as well as to third parties.

MRB Group is also engaged in the rental of its machinery to the quarry and construction industry. Rental periods for machinery are on a monthly basis.

vi) Manufacturing and Trading of Bituminous Products

Minetech Korea Petroleum Industrial Sdn Bhd was formed for manufacturing and marketing of bituminous products specifically for pipe coating in water-related and oil & gas industries.

A new manufacturing plant of an estimated production capacity of 25,000 tonnes p.a. for bituminous products was setup in Ulu Yam.

The bituminous-related products will initially consist of coating enamel and "oxidized" bitumen.