News: Investments flow into Samalaju Industrial Park

FAMILARISATION TOUR: Aloysius (fifth from right) leading the media group and Azam members to the Tokuyama plant.

FOUR companies are readying the infrastructures to build factories on an 8,000-hectare site at Samalaju Industrial Park in Bintulu.

Tokuyama Corp, Press Metal Berhad, Asia Minerals Ltd and OM Holdings Ltd (OMH) are giving local skilled and semi-skilled workers a welcome boost with a stream of road-building and water-electricity supply projects to support the industries they are setting up in the area.

The idea is to locate heavy and energy-intensive industries away from Bintulu town and the populated areas, and the site — 62km from Bintulu Central Business District and accessible via Bintulu-Miri coastal road — at Park is ideal for this, according Liang Yew Chi, Bintulu Development Authority (BDA) senior manager (development).

Making a presentation to an Angkatan Zaman Mansang (AZAM) group, led by its chief executive officer, Dato Aloysius Dris, and the local media at the project site in Samalaju under AZAM’s ‘60 minutes with the CEO’ programme, Liang said the investors were also provided with abundant resources as the area was connected directly to power transmission lines from the Bakun HEP and the Murum HEP.

He disclosed that a deep seaport, which was a prerequisite for the metal smelting industry, would also be built in Samalaju.

Aloysius later led the group on a tour of the Press Metal construction site in Bintulu and the aluminium smelting plant in Samalaju.

Earlier, the group were in Mukah together with Regional Corridor Development Authority (Recoda) chief executive officer Datuk Amar Wilson Baya Dandot. Accompanying them were Recoda’s head project manager Dawend Jiwan, its chief investment officer Kamil Daniel Yap and Bintulu Deputy Resident (development) Sirai Daha.

First foreign investor

Japan’s Tokuyama Corp — the first foreign investor at Samalaju Industrial Park — is setting up a RM2.36 billion plant to produce polycrystalline silicon for solar panels. Production is expected to come on stream next year.

According to a spokesman, the company, formed in 1918, has ventured into the production of organic and inorganic chemicals, cement, building materials, electronic materials, advanced materials, plastic resins, films and medical-related products.

As of March 31, 2011, it employed 5,493 workers and consisted of some 83 group companies.

Meanwhile, Tokuyama Malaysia Sdn Bhd was set up on Aug 18, 2009. Phase one of its plant in Samalaju is expected to produce 6,200 tonnes of industrial materials annually with 13,800 tonnes forecast for phase two.

Present at the brief presentation on the company were its Bintulu branch general manager Waichi Ide, senior officers and engineers.

Waichi said the first phase of the construction would cost about 80 billion yen (RM3.2 billion) and employ 350 local workers while phase two would cost about 130 billion yen (RM5.2 billion) and employ 250 workers.

The commercial operations will start in the second quarters of 2013 and 2014 for phases one and two respectively.

“Tokuyama chose to build a primary overseas production site in Malaysia because of the competitive cost, the abundant hydropower in Sarawak and the available cutting edge technology.

“We are targetting 10 per cent share in the poly-silicon market for PV. As pricing has become significantly more competitive, we have decided to make a big investment (accumulated US$2.6 billion) in Malaysia.

“We can survive globally with our competitive edge,” Waichi added.

The company expects to receive industrial water from the Public Works Department and LAKU in May this year and 132KV from Sesco in June.

Several phases

Press Metal Bhd, which operates an aluminium smelter plant in Mukah Division within the Sarawak Corridor of Renewable Energy (SCORE) has started phase two of its expansion programme at the Park under its wholly-owned subsidiary Press Metal Bintulu Sdn Bhd.

This will be developed over several phases, and the new smelter will have an estimated production capacity of 240,000 tonnes per year.

Asia Minerals Limited (AML) is expected to be ready by May 2013 at the Park.

On the manufacturing front, AML will start ramping up first phase production in June 2013 and by June the following year, it will be able to produce 240,000 tonnes of manganese ferroalloy and ferrosilicon annually.

The second phase is scheduled to start in July 2014 and its production of ferrosilicon, silicon metal and electrolytic manganese metal ferrosilicon, silicon metal and electrolytic manganese metal is expected to reach 95,000 tonnes per year by June 2015.

In steel production, AML is planning to come up with a full range of ferroalloy and high value manganese items such as silicomanganese, low carbon silicomanganese, medium and low carbon ferromanganese, silicon metal, ferrosilicon and electrolytic manganese metal.

OM Holdings Ltd (OMH), which is listed on the Australian Securities Exchange, and Asia Mineral Ltd will both set up a manganese smelter under the SCORE initiative.

OMH’s proposed smelter will have the capacity to produce 300,000 tonnes of manganese ferroalloys and 300,000 tonnes of ferrosilicon alloys per year while Asia Minerals targets an annual production capacity of 400,000 tonnes.

Exclusive negotiations

OMH’s wholly-owned subsidiary, OM Materials (Sarawak) Sdn Bhd, has signed a memorandum of understanding with Syarikat SESCo Bhd (owned by Sarawak Energy Bhd) to enter into exclusive negotiations on a long-term power (500MW) purchase agreement for its proposed smelter.

Explaining the Samalaju water supply scheme, Recoda’s head project management Dawend Jiwan said about
36.6 million litres per day (MLD) of raw water was required by the four investors by 2013, and 5MLD would be distributed to industries in Samalaju, the proposed Samalaju new township and nearby coastal villages.

He said Press Metal would require 0.6MLD, Tokuyama (23MLD), Asia Minerals Limited (20MLD) and OMH 8MLD. By 2015, raw water requirement will be 86MLD.

SCORE is one of the five regional corridors being developed throughout the country.

It’s a major initiative to develop the Central Region and transform Sarawak into a developed state by 2020 and it aims to achieve the goals of accelerating the state’s economic growth and development, as well as improving the quality of life of the people of Sarawak.

SCORE’s core assets are its energy resources (28,000 MW), particularly hydropower (20,000 MW), coal (5,000 MW) and others (3,000 MW).

These will allow Sarawak to price its energy products competitively and encourage investments in power generation and energy-intensive industries that will act as triggers for the development of a vibrant industrial development in the corridor.

http://www.theborneopost.com/2012/01/22/investments-flow-into-samalaju-industrial-park/

News: Press Metal, partners sign deal with Sarawak Energy

Press Metal, partners sign deal with Sarawak Energy

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

Source: http://biz.thestar.com.my/news/story.asp?file=%2F2011%2F4%2F13%2Fbusiness%2F8468050&sec=business

News: Joint agreement on RM5bil aluminium smelting plant

Joint agreement on RM5bil aluminium smelting plant

KUALA LUMPUR: Gulf International Investment Group Holdings Sdn Bhd, headed by local tycoon Tan Sri Syed Mokhtar Al-Bukhary and UAE-based business leader Mohamed Ali Rashed Alabbar, has entered into a joint-venture (JV) agreement with Aluminium Corp of China to develop a US$1.6bil (RM5bil) aluminium smelting plant in Sarawak.

The JV company, Smelter Asia Sdn Bhd, will develop, own and operate the private aluminium smelting plant with an annual capacity of 370,000 tonnes.

The smelter will be located in Samalaju Industrial Park, 60km from Bintulu and some 180km from the Bakun hydroelectric dam. The park has been earmarked by the state government for heavy industries under the Sarawak Corridor of Renewable Energy master plan.

Smelter Asia also executed the principal terms of the power purchase agreement (PPA) with Syarikat Sesco Bhd, the wholly-owned subsidiary of Sarawak Energy Bhd, for over 600MW of power supply to the proposed aluminium smelting plant. Smelter Asia and Sesco will jointly conclude the PPA by mid-year.

Prime Minister Datuk Seri Najib Tun Razak and Chinese Premier Wen Jiabao (second from left) witness the exchange of document between Smelter Asia chairman Mohamed Ali Rashed Alabbar (right) and Aluminium Corp of China deputy GM Zhang Chengzhong

“The global demand for aluminium is projected to grow by an average 4% over the next five years, with Asia driving the demand. Our strategic collaboration will bring the best in class technology to create a modern aluminium plant that will contribute to the socio-economic growth of Sarawak state,” Syed Mokhtar said in a media statement yesterday.

Meanwhile, Alabbar said the plant would not only benefit the country but also support the Asean region's development thrust by providing aluminium, which is critical in driving the massive infrastructure projects that are being planned.

“This signing of joint-venture agreement marks a significant milestone in the course of project development. I believe Smelter Asia would become an indispensable driving force that dramatically stimulates Sarawak's economic growth,” Aluminium Corp deputy general manager Zhang Chengzhong said.

The agreement follows the execution of the heads of agreement for the JV in February.


Source: http://biz.thestar.com.my/news/story.asp?file=/2011/4/29/business/8576388&sec=business

News: Abu Dhabi smelter joins crowded space for Sarawak’s energy

Abu Dhabi smelter joins crowded space for Sarawak’s energy

By Jahabar Sadiq
Editor

June 18, 2011

Najib walks beside Abu Dhabi’s Crown Prince Sheikh Mohammed bin Zayed Al Nahyan (right) during an official welcoming ceremony in Putrajaya, June 17, 2011. — Reuters pic

KUALA LUMPUR, June 18 — Oil-rich Abu Dhabi’s RM18.1 billion joint-venture to develop aluminium-related industries in Sarawak is causing concern as it will crowd two other proposed smelters and an existing plant for the use of cheap power from the state’s Bakun Dam.

The Malaysian Insider understands from state officials that the 2,400MW hydroelectric dam can only support two large smelters and, possibly, a smaller one, leaving them to figure out if one of the big investors could pull out from the state.

“Smelting is not a small business. It needs up to 1,000MW for each smelter so Bakun’s 2,400MW is not enough for all,” a state official told The Malaysian Insider on condition of anonymity.

Prime Minister Datuk Seri Najib Razak announced yesterday that the National Economic Council had approved the joint venture by 1 Malaysia Development Berhad (1MDB) and Abu Dhabi’s Mubadala Development Company (Mubadala) to develop a RM12.7billion technologically advanced energy-efficient aluminium smelter.

“Mubadala will also help 1MDB team up with other strategic partners with expertise to develop downstream industries valued at RM5.4 billion,” he told a press conference yesterday.

The investment is expected to create more than 40,000 skilled jobs.

Bakun will not be able to cater to all four smelting plants. — Picture by Mohamad Shoox

Two other large smelters — one by a joint-venture between Cahya Mata Sarawak (CMS) and Rio Tinto Alcan, and another by GIIG Holdings Sdn Bhd and the Aluminium Corp of China Ltd (Chalco) — are still in the early stages of development. Both are looking at establishing smelters with capacities of 720,000 tonnes and 330,000 tonnes, respectively.

The only running smelter at the moment is Press Metal Bhd’s 60,000-tonne plant in Mukah, which has been operational since November 2009. It uses about 10 MW of power that is supplied by Sarawak Energy Bhd.

Sarawak has also announced it will develop other hydro power dams in the future but these dams will not be ready if all the smelting plants take off.

The Sarawak government has exclusive rights to Bakun’s power at a rate of 6.25 sen/kWh, under a deal signed between the state-owned Sarawak Electric Supply Corporation, a subsidiary of Sarawak’s sole electricity provider Sarawak Energy Bhd (SEB), and Sarawak Hidro Sdn Bhd, a unit of the Ministry of Finance Incorporated and owner of the Bakun Dam.

“It looks like one giant smelter might not take off. It could be Rio Tinto’s as they have yet to secure a power purchase agreement,” another source told The Malaysian Insider.

The source also noted environmentalists’ fear of pollution from the number of smelters in the state, known for its vast areas of million-years old rainforest and a fragile eco-system that is home to rare species of flora and fauna.

“Smelting is not a clean industry. There is that concern about pollution that the state must handle,” the source said, adding Sarawak is already facing pressure for its logging industry.

The Miri-based Borneo Research Institute Malaysia (Brimas), a NGO dedicated to protecting the environment and the rights of indigenous peoples, previously expressed health fears from the smelting industry when Rio Tinto first announced its plans for a smelter.

The principal sources of pollution caused by smelting are contaminant-laden air emissions and process waste such as wastewater and slag but newer technologies are available to reduce them.

Source: http://www.themalaysianinsider.com/malaysia/article/abu-dhabi-smelter-joins-crowded-space-for-sarawaks-energy/