KUALA LUMPUR: CAHYA MATA SARAWAK BHD [] the cost to build the manganese and ferro silicon smelting plant increased from US$450 million to US$50 million due to an increase in higher engineering and machinery costs.
In an announcement to Bursa Malaysia, Monday, Oct 24, it said the increase in costs was attributed to " additional engineering, procurement, CONSTRUCTION [] management and indirect costs (EPCM) of US$9.2 million, insurance of US$2 million, last mile electricity connection worth US$3.8 million and a conveyer belt worth US$35 million".
It was responding to a Bursa Malaysia Securities query over the higher costs for the project.
To recap, on Thursday, Oct 20, CMSB announced the signing of two MoUs between its unit Samalaju Industries Sdn Bhd and OM Materials (S) Pte Ltd, a unit of OM Holdings Limited for the plant with an annual capacity of about 600,000 tonnes in Samalaju, Sarawak.
CMSB also said the parties were still negotiating the terms of the raw material supply agreement, including the duration for the supply.
"Barring unforeseen circumstances, it is anticipated that the Raw Material Supply Agreement will be concluded by the first quarter of 2012,” it said.
CMSB anticipated that negotiations with the off-takers would be concluded by the second quarter of 2012.
In an announcement to Bursa Malaysia, Monday, Oct 24, it said the increase in costs was attributed to " additional engineering, procurement, CONSTRUCTION [] management and indirect costs (EPCM) of US$9.2 million, insurance of US$2 million, last mile electricity connection worth US$3.8 million and a conveyer belt worth US$35 million".
It was responding to a Bursa Malaysia Securities query over the higher costs for the project.
To recap, on Thursday, Oct 20, CMSB announced the signing of two MoUs between its unit Samalaju Industries Sdn Bhd and OM Materials (S) Pte Ltd, a unit of OM Holdings Limited for the plant with an annual capacity of about 600,000 tonnes in Samalaju, Sarawak.
CMSB also said the parties were still negotiating the terms of the raw material supply agreement, including the duration for the supply.
"Barring unforeseen circumstances, it is anticipated that the Raw Material Supply Agreement will be concluded by the first quarter of 2012,” it said.
CMSB anticipated that negotiations with the off-takers would be concluded by the second quarter of 2012.
