KUCHING: Press Metal Bhd and three foreign companies, which together plan to invest some RM9.5bil in energy-intensive industries in Samalaju Industrial Park, Bintulu, have signed separate power purchase agreement (PPA) term sheet with Sarawak Energy Bhd (SEB).
SEB's chief executive officer Torstein Dale Sjotveit (pic) said Press Metal and the three companies OM Materials,Asia Minerals Ltd and Tokuyama Corp would require a long-term supply of 1,300MW to power their plants.
The electricity will be supplied by the 2,400MW Bakun hydroelectric dam, which is expected to produce its first 300MW in three months.
He said Press Metal, which owns and operates an aluminium smelter in Mukah, would invest RM5bil in a new smelter project in Samalaju.
Press Metal, which also has operations in China, Singapore and Dubai, sold 20% of its stakes in Press Metal Sarawak to Japan's Sumitomo Corpabout six months ago.
“OM Materials, a Singapore company listed on Australian Stock Exchange, and has operations in China, Australia and Africa, will invest US$300mil (RM903mil) in a manganese and ferro-silicon smelting plant.
“Asia Minerals Ltd, a Hong Kong company with current operations in Mongolia, China, South Africa and Brazil, will also set up a manganese smelting plant with an investment of US$200mil (RM602mil),” added Torstein at the PPA term sheet agreement signing ceremony witnessed by Sarawak Chief Minister Tan Sri Abdul Taib Mahmud here yesterday.
He said Tokuyama Corp would invest RM3bil in a polycrystalline silicon factory, which is now under construction.
The proposed plants of the four companies, which are the first batch of investors in Samalaju in Sarawak Corridor of Renewable Energy (Score), are expected to start commerical production next year and in 2013.
Torstein said SEB would finalise the PPA with the four companies.
He said SEB was concluding the PPA term sheet with another three Score investors, which planned to invest close to RM3bil. He did not name these investors.
The seven investors are expected to create about 30,000 jobs when their plants are fully operational.
“SEB, together with the State Planning Unit, is also in various levels of discussions with up to 20 other potential Score customers,” he added.
Torstein said the signing of the PPA term sheet signified the positive development towards the success of Score, one of the five regional economic corridors in Malaysia.
“Score holds the most compelling comparative advantage for Sarawak in that the state has abundant energy resources, predominantly the hydro power, an area which SEB has been tasked to develop.”
He said it was a big challenge for SEB to develop up to 7,000MW by 2020 as being planned by the authorities. About 75% of the 7,000MW would be from hydro dams.
SEB is now constructing the 944MW Murun dam, upstream of Bakun dam. - By JACK WONG
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