Lumut Maritime Terminal Sdn Bhd (LMT), the concession holder for Lumut Port, is planning to take legal action against Perak state, claiming that the jetty being built by Brazilian mining giant Vale SA in Manjung, Perak breaches the terms of LMT’s concession agreement.

Although the actual terms of LMT's concession are not known, port sources say that Vale’s jetty is located only some 30 kilometres from LMT.

This is a point of contention by LMT which maintains the Vale jetty it too close to its port.

An executive of LMT confirmed that the company was looking to commence proceedings for arbitration as per the terms of the concession agreement, but declined to elaborate.

"Yes we are planning to go for arbitration... but I'm not at liberty to discuss such issues with the press," the executive said in a quick phone conversation.

Ironically, LMT is majority-owned, by one share, by a Perak state government entity but management is controlled by private interests.

LMT and Lekir Bulk Terminal Sdn Bhd (LBT) make up Lumut Port.

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