Taib: Score unaffected by smelter cancellation
BernamaPublished: Mar 28, 2012 4:48 AM | Updated: Mar 28, 2012 5:49 AM
The scrapping of the proposed RM7 billion aluminium smelting plant project in Similajau, near Bintulu, will not affect the implementation of the Sarawak Corridor of Renewable Energy (Score), Chief Minister Abdul Taib Mahmud said today.
The scrapping of the proposed RM7 billion aluminium smelting plant project in Similajau, near Bintulu, will not affect the implementation of the Sarawak Corridor of Renewable Energy (Score), Chief Minister Abdul Taib Mahmud said today.
He said there were probably two other investors on the waiting list following the termination of the pact between Cahya Mata Sarawak (CMS), Rio Tinto Aluminium (Malaysia) Sdn Bhd (RTA) and Sarawak Energy Bhd (SEB) to construct the plant, located within the Score region.
“In fact, Sarawak is short of power for aluminium at the moment and can only accommodate one (project) at a time... So if this one (joint venture) is not on, it does not matter," he told reporters after launching the Malaysian Red Cresecent Society Kuching Chapter Flag Day to raise RM50,000 for its various activities this year, at his office in Petra Jaya in Kuching.
Commenting on the termination of plans to jointly develop the aluminium smelter, he said the Rio Tinto side had come to see him on the matter, besides informing that the Australian mining giant had underwent some slight restructuring lately.
“So, as far as Rio Tinto is concerned, they said the company is not going to go for the first phase only and is not going to participate at this stage because they do not want to be tied down,” he said.
Yesterday, CMS group managing director Richard Curtis said CMS and RTA had been working for several years to establish the project but were unable to finalise commercial power supply terms with SEB which would meet the parties’ current respective financial considerations and economic imperatives.
As a result, RTA and CMS had agreed that they would cease to pursue plans to jointly develop the aluminium smelter but remained open to other future possible collaborations.
The termination involved Heads of Agreement between RTA and Samalaju Aluminium Industries Sdn Bhd, a wholly owned subsidiary of CMS, and the memorandum of understanding between both parties and SEB.
Currently, CMS has taken a 20 percent participation in the planned 600,000-tonne manganese and ferro alloy smelter which is scheduled to commence production in 2013.
This smelter is being established in Samalaju Industrial Park by a subsidiary of OM Holdings Limited, an Australian listed miner, manufacturer and trader of manganese, iron and chrome ores and alloys.
- Bernama
He said there were probably two other investors on the waiting list following the termination of the pact between Cahya Mata Sarawak (CMS), Rio Tinto Aluminium (Malaysia) Sdn Bhd (RTA) and Sarawak Energy Bhd (SEB) to construct the plant, located within the Score region.
“In fact, Sarawak is short of power for aluminium at the moment and can only accommodate one (project) at a time... So if this one (joint venture) is not on, it does not matter," he told reporters after launching the Malaysian Red Cresecent Society Kuching Chapter Flag Day to raise RM50,000 for its various activities this year, at his office in Petra Jaya in Kuching.
Commenting on the termination of plans to jointly develop the aluminium smelter, he said the Rio Tinto side had come to see him on the matter, besides informing that the Australian mining giant had underwent some slight restructuring lately.
“So, as far as Rio Tinto is concerned, they said the company is not going to go for the first phase only and is not going to participate at this stage because they do not want to be tied down,” he said.
Yesterday, CMS group managing director Richard Curtis said CMS and RTA had been working for several years to establish the project but were unable to finalise commercial power supply terms with SEB which would meet the parties’ current respective financial considerations and economic imperatives.
As a result, RTA and CMS had agreed that they would cease to pursue plans to jointly develop the aluminium smelter but remained open to other future possible collaborations.
The termination involved Heads of Agreement between RTA and Samalaju Aluminium Industries Sdn Bhd, a wholly owned subsidiary of CMS, and the memorandum of understanding between both parties and SEB.
Currently, CMS has taken a 20 percent participation in the planned 600,000-tonne manganese and ferro alloy smelter which is scheduled to commence production in 2013.
This smelter is being established in Samalaju Industrial Park by a subsidiary of OM Holdings Limited, an Australian listed miner, manufacturer and trader of manganese, iron and chrome ores and alloys.
- Bernama
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