News: The Last Frontier

Slow death by aluminum smelters?

http://www.thenutgraph.com/slow-death-by-aluminum-smelters/

WHILE green activists in Peninsular Malaysia are protesting the rare earth refinery that has yet to begin operations in Gebeng, Pahang, villagers living near an aluminium smelting plant in Balingian, Mukah, Sarawak, have been suffering in silence.

Documentary filmmaker and former TV2 producer Chou Z Nam has highlighted the Iban villagers’ plight in four short videos, all available on YouTube, and a report after a field visit in February 2012. Chou is well-known for his documentaries on the Bakun Dam and its impact on local communities. His Bakun Dam documentaries were axed by RTM and he was sacked after disclosing the self-censorship.

How is the aluminium smelting plant affecting the lives of local communities in Balingian? Should we be alarmed at plans for new plants?

The aluminium smelting plant in Mukah (Source: unireka.com)

Declining health and dying crops

In Chou’s first short video released on 22 March 2012, villager Sandy Dancan, 18, complained of skin irritation and rashes which she has had since 2010. Dancan lives 300m away from the plant owned by Press Metal Sarawak Sdn Bhd.

Another villager, Cynthia Unau, 25, worked as a cleaner at the smelter for six months in 2011. She claimed she fell sick while working there in Chou’s second video released on 24 March 2012.

A simple health survey conducted by Chou and local activist Matek Geram found that villagers from three longhouses located 300m to 2.5km from the factory reported symptoms of breathing difficulties, coughing and dizziness, among others. The affected families say they spend RM150 up to RM500 a month for medical treatment.

It was also observed that plants growing 50m to 200m from the factory including nipah, coconut, sago, banana, oil palm and ferns, were dying.

Farmers living within 12km of the smelter have claimed loss of livelihood as their crops cannot bear fruit, while fisherfolk at Batang Balingian alleged that their catch has dwindled, possibly due to acid rain pollution.

Chou’s documentary also records an unidentified former employee accusing the smelter of only using one out of its three compressors to treat air pollutants including hydrogen fluorideand sulphur dioxide in order to save energy costs. The informant claimed that although the plant was equipped with the required pollution control facility, it wasn’t fully utilised when he was working there.

Press Metal Sarawak refuted these claims in a Borneo Post report published on 8 May 2012. Its human resources general manager, Soh Siew Ong, said the smelter only released clean gas into the air and that no water is discharged from the plant.

Cynthia Unau's testimony as featured in Chou's video

More smelters in the pipeline

While villagers in Balingian are still grappling with the health impact of living near an aluminium plant, at least two new larger smelters are expected to be built in Bintulu.

Press Metal Bhd secured a RM350 million loan in May 2012 from two local banks to finance the construction of its second aluminium smelting plant in Bintulu’s Samalaju Industrial Park. The plant is expected to produce 240,000 tonnes of aluminium annually, double the capacity of the existing Balingian plant.

Smelter Asia, a joint venture between Gulf International Investment Group Holdings Sdn Bhd and Aluminium Corp of China, also plans to build a smelter in the same industrial park, with an even larger annual capacity of 370,000 tonnes.

Aluminium smelting involves a chemical process to extract pure aluminium from its oxide called alumina. But the process leaves behind fluoride pollutants, including the pungent and toxic hydrogen fluoride as well as perfluorocarbons (PFCs), which are far more potent greenhouse gases than carbon dioxide.

In addition, an aluminium smelting plant is an energy guzzler as a high temperature of 970 Celsius is needed to melt the alumina. For example, while the Mukah district consumes two megawatts of electricity per month, the Balingian smelter alone uses up to 200 megawatts a month, according to Press Metal Sarawak. Smelter Asia is also in talks with Sarawak Energy Bhd to secure over 600 megawatts of power supply.

Heed the warning signs

The process of extracting aluminium is an environmental challenge. Yet, aluminium is highly sought after to make vehicles and for food packaging, and is arguably a necessity in modern life. The aluminium industry is one of the primary forces behind the Brazilian government’s plan to dam rivers in the Amazon to meet the industry’s high energy demand. Sarawak seems to be going down the same path with its grand plan to build 12 mega dams despite growing local opposition.

Unlike the case with Lynas, a detailed environmental impact assessment was done for theBalingian smelter. But given the current complaints, the government authorities need to be more proactive in addressing villagers’ complaints on health problems, pollution and dying plants. These are merely warning signs of a potentially larger underlying problem. If, as Press Metal Sarawak claims, no air pollutants have been released by its smelting plant, then what is the real source of pollution in Balingian? Shouldn’t the authorities be investigating?

Taib Mahmud (Wiki commons)

As Chou recommended in his fact-finding report, a more thorough health study needs to be conducted to ascertain the cause of the villagers’ sicknesses. Rainwater and plant samples ought to be collected by the state Department of Environment to find out if they are contaminated with pollutants from the smelter.

The Balingian smelter is located Sarawak Chief Minister Tan Sri Abdul Taib Mahmud’s constituency. Surely he wouldn’t want an environmental and public health scandal in his own backyard.

In addition, the Sarawak government ought to rethink its development strategy. Building more smelters may indeed spur the state’s economic growth, but not at the expense of the health and quality of life of the locals, unless the companies are held to strict environmental standards. 

News: RM820m claims to drive up Bakun Dam costs

KUALA LUMPUR, May 7 — Officially priced at RM7.46 billion, the Bakun hydroelectric dam project in Sarawak is likely to rocket again as contractors claim a whopping RM820 million from its chief promoter, state-owned Sarawak Hidro Sdn Bhd, The Edge Financial Daily reported today.
However, the final price for the long-delayed dam project is yet to be determined.

A joint-venture company led by Sime Darby, the Malaysia-Sino Hydro Corp joint Venture (MCHJV), has put in claims totalling RM670 million for civil works while another consortium of contractors supplying turbines led by Argentina’s IMPSA group is seeking to claim RM140 million, the daily reported, quoting financial executives close to the project.

It also reported government sources familiar with the ongoing negotiations as saying that Sarawak Hidro, a wholly-owned subsidiary of the Finance Ministry, is willing to pay just over RM100 million while its consultants, who were unnamed, disclosed that IMPSA’s claims have been rejected.

“Both claims are still subject to negotiations between Sarawak Hidro and the respective parties. Ultimately the decision will come from the Finance Ministry,” the paper reported an unnamed senior construction industry executive involved in the project as saying.

The latest claims come at a time when Sarawak Hidro is desperately looking for buyers for power to be generated by the dam, the daily reported.

Rio Tinto, the world’s third largest miner, and Cahya Mata Sarawak, a financial and construction conglomerate based in Sarawak, announced on March 27 this year they have scrapped plans for a US$2 billion (RM6.1 billion) aluminium smelter project in Sarawak as power supply terms could not be finalised.

The aluminium smelter was to have been Bakun’s biggest customer, The Edge Financial Daily reported.

The dam project, first awarded to Ekran Bhd in 1994, was scheduled to have been completed in 2007 but has been plagued by various problems including the 1997 Asian financial crisis.

Inaccurate soil studies by Sarawak Hidro further complicated civil works portion of the dam, the business daily reported.

The mammoth project has also been downsized, with an undersea cable supplying power to Peninsular Malaysia scrapped.

http://www.themalaysianinsider.com/malaysia/article/rm820m-claims-to-drive-up-bakun-dam-costs/

Video: Cursed Baram Dam

News: PKR: Press Metal Sarawak waiting for Taib’s nod

KUCHING: Chief Minister Taib Mahmud, whose family owns Cahya Mata Sarawak (CMS), is unperturbed by global mining giant Rio Tinto PLC’s RM7 billion ‘pullout’ because another investor, Press Metal Sarawak, is believed to be “ready and waiting” to start an aluminium smelter plant.

Press Metal, which has been operating in Mukah since September 2009, is already producing some 300,000 metric tonnes of various aluminium products.

It is apparently one of the two investors which Taib had alluded to in his response to Rio Tinto’s decision to scrap plans to invest RM7 billion in an aluminium smelting plant here.

Press Metal is a Malaysian-based aluminium company with extensive global presence.

The existence of the Mukah plant however only came to light last year after longhouse residents at Rumah Bansan, and five other longhouses in Mukah, claimed they have been suffering from a ‘mysterious’ illness causing their skins to be itchy, various skin diseases, headaches, coughing, breathing difficulties and other health problems.

The villagers claimed that fish, vegetables, fruit trees and the surrounding areas were also affected and blamed their difficulties to the nearby aluminium plant.

Said state PKR vice-chairman See Chee How, when commenting on Rio Tinto’s decision: “Losing the ‘anchor’ aluminium smelting plant project could be a blessing in disguise.

“It’s an opportunity for the Sarawak state government to review its decision and drop its plan to construct the 12 mammoth (hydro-electric) dams in Sarawak.

“However, we are aware that Press Metal Sarawak may step in to replace Rio Tinto Alcan.”
Laxed laws

See, who is the Batu Lintang assemblyman, Sarawak’s relaxed environmental protection legislatures and policies was appealing to multi-national conglomerates.

“Together with the other multi-national conglomerates which are interested to exploit our cheaper hydropower resources and our relaxed environmental protection legislatures and policies, Sarawak will be pervaded by the world most polluting industries in aluminium smelting, manganese smelting, ferro-alloy smelting and polycrystalline silicon plant

“Until today, Sarawakians are kept in the dark as to the environmental impact these industries will have on the state and the Similajau region in particular,” See said.

He also pointed out that it was unlikely that these industries will create job opportunites for locals.

“We are skeptical that these industries will create job opportunities for local Sarawakians as it is reliably learned that one of the manganese smelting companies had doubted the capability of locals to withstand the heat and it has already engaged an employment agency to recruit workers from India and China.

“In addition, these industries will not be generating revenues for the state as they are enjoying a 10-year tax exemption which is the very reasons these industries are setting up their smelting plants in Sarawak,” he said.

Source: http://www.freemalaysiatoday.com/category/nation/2012/03/30/pkr-press-metal-sarawak-waiting-for-taibs-nod/

News: Tengah: More companies keen to pursue smelter project with CMS

KUCHING: The termination of agreements by Cahya Mata Sarawak Bhd (CMS) and Rio Tinto Aluminium (M) Sdn Bhd (RTA) along with Sarawak Energy Berhad (SEB) for an aluminium smelter plant in Bintulu does not mean an end to the proposed project.

According to Second Resource Planning and Environment Minister Datuk Amar Awang Tengah Ali Hassan there are many companies waiting in line to take over RTA’s place.

“In any case, we have actually a long list of keen takers from China and the Middle East. They are ready to take up whatever access power that we have,” he said.

Awang Tengah said the agreements between CMS and Rio Tinto along with SEB were terminated by mutual agreement after a failed negotiation on electricity tariff.

He said the state did not incur any loss due to the termination of the agreements.

“After a long discussion and negotiation, unfortunately we fail to come to the commercial agreement with regards to the electricity tariffs. The parties involved could not agree to the commercial agreement, hence RTA agreed to terminate the agreements.

“Our main concern is not who will take up the place, but how my men can allocate power to the investors as the Bakun Hydro is almost all committed. We hope for the Murum Hydro to be completed soon to provide power for more investors and energy intensive industries.

“Currently at Samalaju there are four (heavy industries) on the ground, and recently we have approved 20 more,” Tengah revealed.

Announcing the termination of the agreements on Tuesday, CMS Group managing director Datuk Richard Curtis said CMS had for several years been working to establish the aluminium smelter project.

However, the parties involved had not been able to finalise commercial power supply terms with SEB to meet the parties’ current financial considerations and economic imperatives.

“As a result RTA and CMS have agreed that they would cease to pursue plans to jointly develop the proposed aluminium smelter in Samalaju but remain open to other future possible collaborations,” said Curtis.


Source: http://thestar.com.my/news/story.asp?file=/2012/3/29/sarawak/11005374&sec=sarawak

News: Taib confident CMS-Rio Tinto no-deal won’t affect SCORE, sees new player coming

KUCHING: The scrapping of plans for an aluminium smelter project in Bintulu by Cahya Mata Sarawak Bhd (CMS) and Rio Tinto Aluminium (M) Sdn Bhd (RTA) will not affect the implementation of the Sarawak Corridor of Renewable Energy (SCORE).

Chief Minister Tan Sri Abdul Taib Mahmud said the termination of the agreements by both parties along with Sarawak Energy Bhd (SEB) did not matter because there were two other companies in the waiting list for aluminium smelter projects.

“In fact, I am short of power at the moment for aluminium (smelters). I can only accommodate one at a time, so if this one is not on it doesn’t matter.

“Probably there’s another one that will come in, it’s in the waiting list,” he told reporters after launching the Malaysian Red Crescent Society Kuching Chapter’s flag day yesterday.

Taib said he was informed that Rio Tinto was undergoing restructuring and did not want to participate in the smelter project at this stage, although it might come back later.

”I think there must be some offer - I don’t know, I’m just guessing - by someone else...with CMS probably, so they don’t want to be tied down.

”As far as Rio Tinto is concerned, they said they’re not going to go for the first phase only. If later on they decide to do it, they will do the whole thing straightaway,” he added.

CMS had announced in a statement on Tuesday that it had terminated its Heads of Agreement and memorandum of understanding with RTA and SEB after commercial power supply terms could not be finalised.

”As a result, RTA and CMS have agreed that they would cease to pursue plans to jointly develop an aluminium smelter at Similajau in Sarawak but remain open to other future possible collaborations,” the statement added.

The Heads of Agreement was signed in August 2007 for the RM7bil smelter project, which was supposed to have an annual capacity of 1.5 million tonnes, while SEB signed the MoU with CMS and RTA in February 2008 to start negotiations on supplying power to the project.

Source: http://thestar.com.my/news/story.asp?file=/2012/3/29/sarawak/11005094&sec=sarawak

News: Scrapping smelter deal: Taib’s political game

KUCHING: Global mining giant Rio Tinto PLC’s “pullout” from Sarawak may be temporary in view of the 13th general election, the uproar over Lynas in Pahang and the fact that Chief Minister Taib Mahmud has not been able to buy the Bakun Dam from the federal government.

Based on this reality, Sarawak DAP treasurer Violet Yong believes that “they might resume negotiations after the election”.

“Announcing the project [pullout by Rio Tinto] just before the general election is a political gimmick. Also, the reason for the termination is not because they did not agree to the purchase of the price of electricity.

“To me, one of the reasons is that the election is very near. And they [BN leaders] are worried that they will face the same consequences as that of Lynas.

“They have to wait, I think, until after the election; then only they will know whether Pakatan Rakyat takes over the government or not,” she said.

Taib yesterday said Sarawak Corridor for Renewable Energy (SCORE) will not be affected by Rio Tinto’s decision to cancel its RM6.1 billion aluminium smelting project in the state.

“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,” Taib said.

Based on Taib’s comment that Rio Tinto is likely to return, Yong, who is the Pending assemblywoman, said that Taib could also be waiting to settle outstanding issues with the federal government over the Bakun Dam.

Polluted industry
“We know that Taib wants to buy the Bakun Dam, but Prime Minister Najib Tun Razak has issued a statement that his administration will not sell it to Sarawak.

“We know there is a confrontation between the state and the federal governments. Is Sarawak using the back-door pressure (the termination of the agreement) to force the federal government to sell the Bakun Dam?

“To me, the smelter project is only benefiting the cronies of the state government and not the people of Sarawak and not the Malaysian people as a whole.

“We know that the Bakun Dam is a ‘white elephant’. With the cancellation of the aluminium smelting project, it makes the dam a bigger ‘white elephant’,” she added.

Yong said the only way to bring a “permanent closure” to the smelting plant deal is for Sarawakians to vote for Pakatan Rakyat.

“From the beginning until now, the DAP stand is always very firm: we are against the aluminium smelting plant because this is a very polluted industry and many countries have rejected such industry.

“The Barisan Nasional does not want us to use it as an issue in the coming general election,” Yong said.
DAP had used the issue in the last state election when its candidate, Chiew Chu Sing, trounced Sarawak
United People’s Party-BN candidate Henry Ling in the Kidurong seat with a 6,930- vote majority.

Source: http://www.freemalaysiatoday.com/category/nation/2012/03/29/scrapping-smelter-deal-taibs-political-game/

News: Two in queue to fill vacuum left by Rio Tinto

KUCHING: Sarawak remains upbeat about wooing more investors to the Sarawak Corridor of Renewable Energy (SCORE) despite the withdrawal of Rio Tinto Aluminium (M) Sdn Bhd (Rio Tinto) from setting up a smelter plant at Samalaju.

Second Minister of Resource Planning and Environment Datuk Amar Awang Tengah Ali Hassan yesterday said the government would not incur any losses from the failed discussions as there were two other companies lining up to take over the project.

The companies, from China and the Middle East, are among the long list of investors keen to have a stake in SCORE.

Awang Tengah, who is also Minister of Industrial Development, said as of today four companies had commenced operations at the Samalaju Industrial Park (SIP), and another 20 firms had been given approval to operate there.

“After long discussions and negotiations (for the proposed smelter plant), unfortunately all parties failed to come to a commercial agreement with regards to the electricity tariff.

“However, we have a long line of takers who are ready to take up whatever excess power that we have.

“The state is not worried about (not getting) investment takers. The main worry now is having sufficient supply of power for the investors,” he told a press conference after officiating at Land and Survey
Department’s ‘Innovation and Integrity Day’ at Four Points by Sheraton Hotel here.

Also present were Assistant Minister of Resource Planning Datuk Mohd Naroden Majais, its Permanent Secretary Datu Sudarsono Othman, and state Land and Survey director Sajeli Kipli.

Awang Tengah said most of the power from the first bloc of Bakun dam and other hydro dams were already committed to investors in SCORE.

The failed discussions between CMS and Rio Tinto with regards to the proposed smelter project after several years of discussions headlined the local media news yesterday.

CMS, in a statement, said the termination involved heads of agreement between Rio Tinto and Samalaju Aluminium Industries Sdn Bhd, its wholly-owned unit, and the Memorandum of Understanding (MoU)
between both parties and Sarawak Energy Bhd (SEB).

Both companies had been in communication for several years to establish an aluminium smelter plant, but were unable to finalise the kind of commercial power supply terms with SEB which would meet the parties’ respective financial considerations and economic imperatives.

CMS Group managing director Datuk Richard Curtis said the company remained committed to being a leading local private sector participant in SCORE.

CMS currently undertakes a 20 per cent participation in the planned 600,000 metric tonnes manganese and ferro alloy smelter which is scheduled to begin production next year.

“This smelter is being established in SIP by a subsidiary of OM Holdings Ltd, an Australian listed miner, manufacturer and trader of manganese, iron and chrome ores and alloys,” he said.

It also involved the provision of accommodation and other related services to workers within SIP as well as in the master developer role for the planned township to adjoin the park.


Read more: http://www.theborneopost.com/2012/03/29/two-in-queue-to-fill-vacuum-left-by-rio-tinto/#ixzz1qSy8uigh

News: PKR cautiously welcomes Rio Tinto’s decision to scrap aluminium project

KUCHING: State PKR vice-chairman See Chee How said the opposition cautiously welcomes the decision of Rio Tinto (M) Sdn Bhd to pull out of the proposed RM7 billion aluminium smelting plant in Similajau, Bintulu.
Losing the ‘anchor’ aluminium smelting plant project could be a blessing in disguise as it was opportune for the Sarawak state government to review its decision and drop its plan to construct the 12 mammoth dams in Sarawak, said the Batu Lintang assemblyman.

However, he said, he was aware that Press Metal Sarawak might step in to replace Rio Tinto and together with the other multi-national conglomerates which were interested to “exploit our cheaper hydropower resources and our relaxed environmental protection legislatures and policies” Sarawak would be pervaded by the world’s most polluting industries like aluminium smelting, manganese smelting, ferro-alloy smelting and polycrystalline silicon plant.

“Until today, Sarawakians are kept in the dark as to the environmental impact these industries will have on the state and the Similajau region in particular,” he claimed.

He further said that they were sceptical that these industries would create job opportunities for Sarawakians as “it was reliably learned that one of the manganese smelting companies had doubted the capability of locals to withstand the heat and it has already engaged an employment agency to recruit workers from India and China.”

In addition, these industries would not be generating revenues for the state as they enjoy a 10-year tax exemption – the very reasons that these industries set up their smelting plants in the state – besides the cheap hydropower resources and that other countries were imposing stringent environmental protection and conservation measures on them, said See through a press statement yesterday.


Read more: http://www.theborneopost.com/2012/03/29/pkr-cautiously-welcomes-rio-tintos-decision-to-scrap-aluminium-project/#ixzz1qSxlJMNM

News: Parties disagree on tariff for power purchase agreement

KUCHING: Sarawak Energy Berhad (SEB) yesterday revealed that Rio Tinto Aluminium (M) Sdn Bhd (RTA) had pulled out from the pact on the proposed aluminium smelter plant at Samalaju Industrial Park as both parties could not agree on the price of electricity.

Its chief executive officer Torstein Dale Sjøtveit said: “SEB has negotiated with Rio Tinto/Salco (Sarawak Aluminium Company) in good faith. We are disappointed to be unable to find a mutually acceptable solution, but the parties’ positions on the price of electricity were just too far apart.”

SEB said there was strong demand for Sarawak’s energy and despite that Sarawak Corridor of Renewable Energy (SCORE) agenda was forging ahead despite the inability to reach agreement with Rio Tinto/Salco.

The new aluminium smelter of another company, Press Metal, on track to commence operation by June this year, will take 480 megawatts.

The construction of other plants is advanced.

The strength of customer demand proves that Sarawak’s renewable hydroelectric power is valuable to energy-intensive industries from around the globe.

“While we regret that an agreement was not possible with Rio Tinto/Salco, I am certain that all the power that could have been allocated to Rio Tinto/Salco will find another willing buyer,” he said.

SEB is a holding company that is 100 per cent owned by the state government of Sarawak. It has, for more than 70 years, provided electricity to more than 500,000 customers in Sarawak through wholly-owned subsidiary, Sesco.

The state government has given SEB a mandate to develop the state’s abundant energy resources to benefit Sarawak’s community.

SEB, which has plans to develop up to 10 new power stations and supporting transmission infrastructure, will become the leading producer of renewable energy in South East Asia. This is the foundation of the government’s broader economic development strategy for SCORE.


Read more: http://www.theborneopost.com/2012/03/29/parties-disagree-on-tariff-for-power-purchase-agreement/#ixzz1qSxR2LTZ

News: Smelter plant scrapped

KUALA LUMPUR: CMS, Rio Tinto agree to terminate deal to set up aluminium smelter plant in Samalaju.
Cahya Mata Sarawak (CMS) and Rio Tinto Aluminium (M) Sdn Bhd (RTA) have terminated the pact on the proposed Sarawak smelter project after several years of discussions.

In a statement here yesterday, CMS said the termination involved heads of agreement between RTA and Samalaju Aluminium Industries Sdn Bhd, its wholly-owned unit, and the memorandum of understanding between both parties and Sarawak Energy Bhd (SEB).

CMS group managing director, Datuk Richard Curtis, said CMS and RTA had been working for several years to establish an aluminium smelter 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 have agreed that they would cease to pursue plans to jointly develop an aluminium smelter at Samalaju in Sarawak but remain open to other future possible collaborations,” he said.

However, Curtis said, CMS remained committed to being a leading local private sector participant in Sarawak’s Corridor for Renewable Energy (SCORE).

CMS said currently, it has taken a 20 per cent participation in the planned 600,000 metric tonnes manganese and ferro alloy smelter which is scheduled to commence production next year.

“This smelter is being established in Samalaju Industrial Park (SIP) by a subsidiary of OM Holdings Ltd, an Australian-listed miner, manufacturer and trader of manganese, iron and chrome ores and alloys,” it said.

It said it was also involved in the provision of accommodation and other related services to workers within SIP as well as in the master developer role for the planned township to adjoin SIP.

“CMS remains very bullish about investment opportunities within SCORE and is assessing the potential of other possible major industrial investment opportunities within SIP.” — Bernama


Read more: http://www.theborneopost.com/2012/03/28/smelter-plant-scrapped/#ixzz1qSwxjjoh

News: Scrapped smelter plant: ‘A blow for Taib’

KUCHING: Swiss-based NGO, Bruno Manser Fund (BMF), today said the decision by global mining giant Rio Tinto PLC to scrap its plan to build a US$2 billion (RM6.1 billion) aluminium smelting plant in Sarawak was a “major victory” for the international campaign to preserve the natural environment.

The plant was to be sited at Similajau near Bintulu.

Rio Tinto decided to scrap the controversial smelter plans as negotiations with Chief Minister Abdul Taib Mahmud’s family-controlled Cahaya Mata Sarawak and the Taib-controlled Sarawak Energy Bhd failed to bear results.

In a statement e-mailed to FMT, BMF said: “Rio Tinto’s announcement is a major blow for the Sarawak state government under Chief Minister Abdul Taib Mahmud who consistently used the aluminium smelter to promote the recently completed Bakun Dam, Asia’s largest dam outside China.

“As a result, the Bakun Dam will cause a massive power glut in Sarawak whose costs will have to be borne by Sarawak consumers, taxpayers and Malaysia’s pension fund EPF which funded the mega-project with massive loans.

“Plans to export Bakun’s excess power to West Malaysia had to be scrapped for economic reasons,” BMF said.

It described Rio Tinto’s decision to abandon its Sarawak smelter plans as major victory for the international campaign to preserve the natural environment and the livelihoods of Sarawak’s indigenous peoples.

“Rio Tinto’s decision proves that the Taib government’s irresponsible economic policies have completely failed. There is no need to build another 12 dams in the state as envisaged by the Taib government.

Halt other dam projects

“All these corruption-driven dam plans that would only benefit the Taib family’s construction companies must come to a halt now.

“This is the kind of development that you have to expect from a kleptocratic potentate who believes in witchcraft instead of sound economic analysis and blatantly abuses his public office in order to rob his people,” it said.

The BMF urged the Sarawak government to immediately halt the ongoing construction works for the Murum dam and to shelve all further dam plans in the state.

“We are also calling on the Malaysian federal government to explain how the Bakun Dam should ever become profitable and how the EPF (Employees Provident Fund) loans to Bakun will be secured,” the BMF said.

The aluminium smelter was supposed to have an annual capacity of 1.5 million tonnes to meet surging demand from China and other developing economies.

But the project, which was first announced in 2007, had not gone beyond the planning stage due to delays in constructing the Bakun Dam that would provide cheap power to energy-guzzling smelter.

Source: http://www.freemalaysiatoday.com/category/nation/2012/03/28/scrapped-smelter-plant-a-blow-for-taib/

Web: Backing Out Of Bakun – Rio Tinto Pulls Out!

The question marks over Taib’s pet mega-project, the billion dollar Bakun Dam, have just multiplied into a full-blown crisis for the so-called ‘CEO of Sarawak’.

The global mining company, Rio Tinto Alcan, has just announced that it is pulling out of the much-touted aluminium smelter venture, SALCO.

This was the flagship project, that was supposed to form the backbone of Taib’s plans to employ the huge surge of hydro-electricity from this enormous structure.

And it leaves the whole fantasy of the Chief Minister’s SCORE (Sarawak Corridor of Energy) concept and his plans to build yet 12 more huge dams hanging in tatters.

Bakun is fast turning into the monstrous white elephant that many had long feared it would.

So much suffering for no use


Floating homes - the Ukip people have returned to their flooded homelands rather than suffer displacement in refugee settlements
Over past weeks and months Sarawak Report has detailed some of the suffering and harm caused by the dam to ordinary people of Sarawak and Malaysia.

Quite apart from the environmental devastation caused by the logging and flooding of a pristine jungle area the size of Singapore and the disruption to the life of Sarawak’s greatest river, the project has brought nothing but misery to the local people.

Ten thousand were forced from their homes, in return for promises of compensation and jobs, which turned into dust once the land had been cleared.

Life is so bleak in the re-settlement zones that many of the native people have chosen to return to their old lands, clinging to the banks of the rising dam waters in their now floating homes.


While people suffered, local MP Billy Abit Joo profited !
And as we have exposed, many of the jobs and contracts presented as opportunities for local communities, were in fact corruptly taken over by hangers on and BN political cronies of the area, like the Federal MP Billy Abit Joo, who has became the main shareholder and beneficiary of the so-called ‘people’s cooperative’ Wargana Consortium.

Sarawak Report and other NGOs have been vigorously drawing attention to these outrages and such information will not have gone un-noticed by a company such as Rio Tinto Alcan, which is sensitive to the views of its western shareholders when it comes to human rights and environmental issues.

Why did Rio Tinto Alcan really pull out of SALCO?

The reason given for Rio Tinto Alcan’s decision to pull out of the planned US$2billion smelter was politely described as a failure to come to an agreement over the price of the electricity being offered from the Bakun Dam.

This is probably indeed a large part of the reason.  The conglomerate was tempted to pull out of its existing operations such as Canada, the UK and Australia as long as it could be guaranteed dirt free electricity.  However, what benefit was that to the people of Sarawak?


Key players in the SALCO project were Taib, Robert Geneid and CMS's Richard Curtis
The point of the dam was to make money!

In fact there is an urgent need to make money from Bakun, in order to somehow pay back the billions that have been siphoned out of the Employees Provident Fund and other Malaysian government pension schemes to build it.

If Bakun cannot get a decent price for its electricity, then those pensioners will lose out.

With the prospects looking grimmer by the day the ‘CEO of Sarawak’ and his BN buddies in the Federal Government are surely at last beginning to realise why no private investors were prepared to touch the project!


Failure! - Key players like CMS's Richard Curtis had put their hopes on winning this key project that would have poured money into Taib's family company!
So, maybe Rio Tinto Alcan’s demands for virtually free electricitywere too much even for Taib and his desperate team lead by brother-in-law, Robert Geneid, and CMS CEO, Richard Curtis, who had invested all their hopes in winning this bid?

Corruption!


We exposed how Australian Commissioner Miles Kupa had worked tirelessly to promote the Rio Tinto bid, despite its corrupt nature and the fact that it would undermine jobs in his own country! Did he think twice?
But, we suspect there was an even more compelling reason for Rio Tinto Alcan to come to the swift conclusion that they shouldn’t be touching Sarawak and its dodgy Chief Minister and his clique of BN cronies and family hangers-on with a barge pole.

That reason was the over-whelming stench of corruption that no amount of sweet talk and cover-up could conceal!

Sarawak Report comprehensively exposed the full scandal behind Taib’s plans to personally make billions out of the SALCO venture just last month.

Australian High Commissioner, Miles Kupa, may have been dragged in to support the bid and Rio Tinto Alcan executives may have flown into Kuching just a fortnight earlier to continue negotiations. However, once the cat was out of the bag that Sarawak’s own Chief Minister was standing to make hundreds of millions, if not billions, out of the carefully crafted deal, how could such supposedly respectable entities continue to be involved?


What use now for all Bakun's electricity? Maybe free electricity for the people of Sarawak!?
Sarawak Report received no response or comment from Rio Tinto Alcan or the Australian High Commissioner from its exposes into their involvement in the corrupted SALCO project, but sometimes actions speak louder than words.

This was not a project that RTA were going to find easy to explain to their shareholders.

Questions still remain about how it was that RTA were still actively negotiating on this clearly corrupted project as late as January this year?

This was long, long after company executives had realised that this was not a joint venture with the State of Sarawak, but with the family firm of the Chief Minister of Sarawak CMS!

More dams!


Sarawak's shame - refugees of Bakun. Taib might not care, but could Rio Tinto Alcan put up with this stain on their image as they profited from the dam?
And yet Taib Mahmud and his BN cronies are still forging ahead with all their plans to build a whole new swathe of dams once they have got the next election out of the way!

Another half million people flooded from their lands (once the wood has been conveniently extracted and the profits divided amongst them).  Why, when there is no use for the electricity?  Why, when neither the Bakun Dam nor even the far older Batang Ai dam are turning even half their turbines most of the time?

The reason is of course, as always, the prospect of profit for Taib Mahmud, who plans to borrow billions for these projects and for SCORE.  Billions of dollars that can be poured into his companies as he gets them involved in all the contracts for building the dams and involving foreign companies in cheap electricity projects (like the doomed SALCO venture).

It is the people of Sarawak who will have to find the money to pay all this borrowing back and they are unlikely to have any profit from these useless dams to help them.

So much for BN’s CEO of Sarawak!

Source: http://www.sarawakreport.org/2012/03/backing-out-of-bakun-rio-tinto-pulls-out/

Web: Mining cancellation throws wrench into Sarawak dam-building spree

Bakun dam during construction. Photo by: Mohamad Shoox.


The world's third largest mining company, Rio Tinto, and a local financial and construction firm, Cahya Mata Sarawak (CMS), have cancelled plans for a $2 billion aluminum smelter to be constructed in the Malaysian state of Sarawak. The cancellation calls into question Sarawak's plan to build a dozen massive dams—known as the Sarawak Corridor of Renewable Energy (SCORE) initiative—that were proposed, in part, to provide power to the massive aluminum smelter. However, the mega-dam proposal has been heavily criticized for its impact on Sarawak's rivers, rainforest and indigenous people.

Rio Tinto and CMS stated that the project had been dropped because power supply terms could not be agreed on. The smelter would have produced 1.5 million tons of aluminum annually. According to Jacynthe Cote, chief executive of Rio Tinto's Alcan aluminum division, there were no hard feelings over the cancellation.

"Looking into the future, we remain interested in development opportunities that may arise within the state and the country," he said.

Beyond the internal decisions, the cancellation immediately puts Sarawak's dam building plans under new scrutiny. After long delays and cost overruns, one of the dozen dams has already been completed, the 2,400 megawatt Bakun dam. The dam reportedly displaced around 10,000 indigenous people and flooded 70,000 hectares of rainforest (about the size of Singapore). By itself, the Bakun dam produces twice as much power as the entire state of Sarawak. Despite this, a second dam, the 900 megawatt Murum dam, is currently under construction.

Sarawak's government, under Abdul Taib Mahmud or "Taib", has been aggressively pushing implementation of the SCORE plan and fending off criticism, stating that the state would need the additional power for the Rio Tinto-CMS smelter.

"Rio Tinto's decision [to cancel the smelter] proves that the Taib government's irresponsible economic policies have completely failed. There is no need to build another twelve dams in the state as envisaged by the Taib government," reads a statement from the Bruno Manser Fund, a group that works with indigenous people in Sarawak. "All these corruption-driven dam plans that would only benefit the Taib family's construction companies must come tho a halt now."

Local opposition against the dams has been fierce. Last fall indigenous groups, local people, and domestic NGOs established the Save Sarawak's Rivers Network in order to fight the dams. In addition, hundreds of land lawsuits have been filed against the proposed dams.

The Bruno Manser Fund is calling on the Sarawak government to stop construction on the Murum dam and cancel all other dam projects.


Read more: http://news.mongabay.com/2012/0327-hance_sarawak_aluminum_cancel.html#ixzz1qNxvQxIO

News: Rio Tinto, CMS scrap US$2b smelter project in Malaysia

KUALA LUMPUR (March 27, 2012): Rio Tinto, the world's third largest miner, and Cahya Mata Sarawak Bhd (CMS) have scrapped plans for a US$2 billion aluminium smelter project in Malaysia's Borneo island state of Sarawak as power supply terms could not be finalised, CMS said in on Tuesday.

CMS, a financial and construction conglomerate based in Sarawak, said both companies had worked to set up an aluminium smelter for years but could not agree on the commercial power supply terms with Sarawak Energy Bhd.

"As a result, Rio Tinto Aluminium (Malaysia) and CMS have agreed that they would cease to pursue plans to jointly develop an aluminium smelter at Samalaju in Sarawak but remain open to other future possible collaborations," CMS group managing director Richard Curtis said in a statement.

The aluminium smelter was supposed to have an annual capacity of 1.5 million tonnes to meet surging demand from China and other developing economies.

But the project, which was first announced in 2007, had not gone beyond the planning stage due to delays in constructing Bakun dam -- one of the world's largest hydroelectric dams -- that would provide cheap power to energy-guzzling smelter.

Malaysia's government last year set a lower rate on the power generated from the Bakun dam in Sarawak, selling it to Sarawak Energy at 6.25 sen per kilowatt hour (KwH) with an expected increase of 1.5% every year.

The new rate is within Sarawak's offer to buy electricity at 5 sen and 7 sen per KwH in order to secure investments from smelters for whom energy accounts for a third of costs. – Reuters

Source: http://www.thesundaily.my/news/333106

News: Bakun’s reservoir now as big as Singapore

FULL LEVEL: The most recent photo of the reservoir at Bakun Dam

KUCHING: The impoundment of the Bakun Dam reservoir, which commenced on October 13, 2010, has reached the full supply level of 228m above sea level (asl) as of last Friday.

Sarawak Hidro Sdn Bhd (SHSB) managing director Zulkifle Osman said the size of the reservoir was now over 695 square kilometres, which is a water body equivalent to 

the size of Singapore.

Despite this, he said based on SHSB’s spillway operation rule, the reservoir would have to be lowered six metres to eight metres below the full supply level.

It has to be maintained at this level until such time the Sarawak Electricity Supply System load increases to allow the reservoir to operate over its full range, he added.

The additional release for reservoir lowering is scheduled to commence today.

“The lowering of the reservoir level also serves as an important purpose in providing flood storage of the reservoir, and hence reducing the peak spillway discharges during floods, thereby regulating floods downstream,” he said in a statement.

He also mentioned that since November 11 last year, Bakun Dam has been continuously releasing about 500 cubic metres per second (m3/s) of water through its spillway, and up to 300 m3/s from the powerhouse for power generation to enable unrestricted river traffic, especially for passenger express boats travelling between Kapit, Belaga and Bakun.

As for today’s scheduled reservoir lowering, he said the total discharge  downstream would be three times more, at 2,500 m3/s.

“This is approximately 1.6 times the long term average flow of Batang Balui (1,500 m3/s), but much lower than high flow of the river. It is anticipated that with this additional discharge, the downstream river level will rise further, and the river flow will become swifter.

“As such, river users and inhabitants downstream of the dam are hereby advised to take extra precautions on the rising river level and fluctuating river flows.”

He also said SHSB, as owners of Bakun Dam, wish to express their sincere appreciation to the downstream folks for their understanding and cooperation during the impoundment period.

“The downstream river users have benefitted from almost uninterrupted river travel.”

Read more: http://www.theborneopost.com/2012/03/12/bakuns-reservoir-now-as-big-as-singapore/#ixzz1qDG72CI7

News: Statistics show SCORE won’t benefit locals

 

KUCHING:  If the labour force survey statistics for 2008-2011 is any yardstick then Taib Mahmud’s  much touted Sarawak Corridor of Renewal Energy (SCORE) will be of no benefit to locals least of all the indigenous communities who will be left far behind.

According to Sarawak PKR chief Baru Bian the figures from the Department of Statistics  don’t offer any  indications that locals will enjoy the fruits from SCORE.

“This is because SCORE will need highly skilled labour force, and our people, especially those in the rural areas have little opportunities to complete their school studies and go on to tertiary level.

“From the labour force survey (2008-2010) of the Department of Statistics, out of Sarawak’s labour force, only 17% or 166,175 people have any form of post secondary education,” he said.

He added that even the projected figures for the labour force were dismal.

He pointed out that according to the ‘projections’ for 2011,  the number of ‘labour force with post secondary education’  would amount to 150,690 of which the Malay-Melanau comprise 33.4% and the Chinese 39.49%.

“The Ibans makeup only 15.50%  while the Bidayuh comprise 7.19% and the Orang Ulu only 4.38% of labour force with post secondary education.

“From the statistics above, clearly, our people, especially the indigenous people are in no position to take on the jobs that are purportedly going to be created by SCORE,” said Bian who is Ba Kelalan assemblyman.

He was commenting on recent reports here highlighting the plight of Sarawakian workers in Singapore and the loss of millions of ringgit from the state due to illegal foreign workers.

Raise education standards

He said state Minister Fatimah Abdullah’s comment that SCORE would create 290,880 jobs by 2015 and with the likelihood of this increasing to 662,065 jobs by 2020 was insignificant to Sarawakians who were ill-equipped to participate in the progress.

“Fatimah Abdullah said that the state has only 25% highly skilled workers to date and that by the year 2015, SCORE is expected to create some 290,880 jobs that would increase to 662,065 jobs by 2020.

“This is significantly higher than the figure from the Department of Statistics for 2008-2010.

“We will need around twice the number of skilled workers than will be available from the whole of our labour force.

“The government is actually looking at importing foreign labour to fill these vacancies.

“How is SCORE going to benefit the people, if this is the scenario?” asked Bian, pointing out that the state needed to refocus on the very basic foundation of a successful and vibrant society which is developing its education system.

He said poor education policies and amenities were the root cause of low education levels in the state.

“A PR (Pakatan Rakyat) government will ensure that every child is given the opportunity to further his or her studies.

“We will raise standards of teaching, provide training opportunities for teachers, and provide better and more vocational training for school leavers,” he said.

Better wages needed

On a related issue,  Bian reasoned that foreigners worked mainly in plantations and construction sites “owned or controlled” by Taib’s relatives, his cronies, Barisan Nasional politicians and their families and friends.

“They take the land from the locals for plantations, and then to add insult to injury, offer the lowest wages (around RM18 per day), which is grossly insufficient to sustain even one person, let alone a family.

On claims that Sarawakians were choosy with jobs Bian said that it was inevitable.

“We cannot blame the (our) people for not wanting these jobs. They have to go to West Malaysia, Singapore and further abroad to make a living.

“The point is that our people cannot even earn a living on the wages being offered here. Why should they just be content on earning a living?

“We should want them to thrive and prosper. The Indonesians live the most frugal lives here so that they can send to their families the little that they make.

“Our people have families to support, and hence have to seek greener pastures outside of Sarawak,” he said, pointing out that there are 112,209 legal foreign workers in Sarawak.

“That means there are 112, 209 jobs that could be given to locals, if they are paid decent wages which they can live on.

“Currently, money generated from plantations and construction projects end up in Indonesia as remittances of the labourers or in the pockets of those who steal from and cheat the rural people, ” he said.

He said the solution now is to raise the wages sufficiently so that people can have enough to live on comfortably and to aim for better futures for their children, instead of just struggling to eke out a living.

Source: http://www.freemalaysiatoday.com/category/nation/2012/03/17/statistics-show-score-wont-benefit-locals/