Malaysia says BHP, Rio and Alcoa mulling smelter project<\/p>\n
Agence France-Presse, Kuching<\/p>\n
Global metals giants BHP Biliton, Alcoa Inc and Rio Tinto, are
\nkeen on building an aluminium smelter in Malaysia's eastern
\nSarawak state on Borneo island, a minister said on Thursday.<\/p>\n
Firms in China have also expressed interest, Sarawak chief
\nminister Taib Mahmud told reporters on the sidelines of an
\nenvironmental conference here.<\/p>\n
However, Taib said no decision had been made on which company
\nwould be involved in the planned smelter, which would draw power
\nfrom the state's controversial Bakun dam.<\/p>\n
\"The government of Malaysia has not decided which aluminium
\nplant is going to be linked with the Bakun dam project because of
\nthe negotiation of prices of electricity,\" he said.<\/p>\n
Taib dismissed earlier reports that the Sarawak government was
\nsupporting any one company.<\/p>\n
\"We don't back people, otherwise there is no opportunity for
\nchoice,\" he said.<\/p>\n
When asked if the Sarawak government would take a stake in the
\naluminium smelter, Taib sidestepped the question, insisting the
\nmarket for production of electricity were among key issues that
\nneeded to be worked out first.<\/p>\n
\"We are flexible,\" he said of the possibility of Sarawak
\ntaking a stake.<\/p>\n
He also confirmed the Bakun dam would have a production
\ncapacity of 2,400 megawatts, following reports the government was
\nmulling measures to downsize the project.<\/p>\n
Several companies have announced they were building smelters
\nin Sarawak.<\/p>\n
BHP Billiton and Japanese conglomerate Mitsubishi Corp in
\nOctober issued a statement saying they would jointly build an
\nalumimium smelter in Sarawak.<\/p>\n
Malaysia's Smelter Asia recently said it has signed a deal
\nwith China Aluminium International Engineering Corp (Chalieco) to
\nuse its technology at a planned aluminum plant in Sarawak, which
\nwould produce 600,000 metric tons of aluminium a year.<\/p>\n
It said Smelter Asia was expected to buy some 1,100 megawatts
\nof electricity generated by the Bakun dam.<\/p>\n
The Bakun dam project has been dogged with delays and setbacks
\nsince its approval in 1993. It had been slated to be completed by
\nAugust 2007.<\/p>\n
Initiated by former premier Mahathir Mohamad, the dam was
\ntaken over by the government and revived in 2001 after it was
\nshelved during the 1997-1998 Asian financial crisis when the main
\noperator fell into debt.<\/p>\n
The dam, which involves flooding an area the size of
\nSingapore, has attracted fierce criticism because of its harmful
\nimpact on the environment.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/malaysia-says-bhp-rio-and-alcoa-mulling-smelter-project-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}