US$1.2b pulp project in doubt<\/p>\n
KUALA LUMPUR (Reuters): A Sino-Malaysian project to build a
\n4.6 billion ringgit (US$1.2 billion) pulp and paper mill in
\nMalaysia's Sabah state is in jeopardy because of "equity
\nproblems", a government official said on Monday.<\/p>\n
A Primary Industries Ministry official said problems at
\nInnoprise Corporation, the investment arm of the state
\ngovernment's Sabah Foundation, threatened the development.<\/p>\n
He added that Primary Industries Minister Lim Keng Yaik has
\ncanceled a trip to China in August to discuss the deal.<\/p>\n
"If they cannot settle the equity issue I think China may move
\nout," said the ministry official.<\/p>\n
Environmentalists are hoping the deal, signed in 1997, falls
\nflat. It aims to clear 240,000 hectares of jungle -- an area more
\nthan three times larger than Singapore -- on the island of
\nBorneo.<\/p>\n
Under the deal the Sabah and Chinese governments would each
\nget 40 percent equity in the project with Malaysia's Lion Corp
\ntaking 20 percent.<\/p>\n
In May, Lim said the mill would begin operating in Kalabakan,
\nTawau, on Sabah's east coast in 2004.<\/p>\n
The new mill is supposed to produce 750,000 tons of raw pulp.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/us12b-pulp-project-in-doubt-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }