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