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


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