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