Wednesday 28 March 2012

Rio Tinto's decision won't affect Samalaju aluminium smelting project

KUCHING (March 28): The termination of agreement by Rio Tinto Aluminium (M) Sdn Bhd (RTA) and CAHYA MATA SARAWAK BHD [] (CMS) for the aluminium smelter project will not affect the original plan to develop the project in Samalaju Industrial Park (SIP).

Sarawak State Industrial Development Minister, Datuk Amar Awang Tengah Ali Hassan said to date there are 20 companies that have been shortlisted to invest in SIP, including a few companies involved in aluminium smelting projects.

"We are not worried (about the termination of the agreement). Our concern is whether we have sufficient power to supply to the heavy industries in Samalaju," he told reporters after the launch of Innovation and Integrity Day of Sarawak Land and Survey Department here.

Awang Tengah, who is also the Second Resource Planning and Environment Minister, said several interested investors especially from China and Arab countries have been identified to proceed with the project, which was expected to commence production in 2013.

In a statement yesterday, CMS said the termination involved heads of agreement between RTA and Samalaju Aluminium Industries Sdn Bhd, its wholly owned subsidiary, and the memorandum of understanding between the two companies and Sarawak Energy Bhd. - Bernama



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