Malaysia says BHP, Rio and Alcoa mulling smelter project
Malaysia says BHP, Rio and Alcoa mulling smelter project
Agence France-Presse, Kuching
Global metals giants BHP Biliton, Alcoa Inc and Rio Tinto, are keen on building an aluminium smelter in Malaysia's eastern Sarawak state on Borneo island, a minister said on Thursday.
Firms in China have also expressed interest, Sarawak chief minister Taib Mahmud told reporters on the sidelines of an environmental conference here.
However, Taib said no decision had been made on which company would be involved in the planned smelter, which would draw power from the state's controversial Bakun dam.
"The government of Malaysia has not decided which aluminium plant is going to be linked with the Bakun dam project because of the negotiation of prices of electricity," he said.
Taib dismissed earlier reports that the Sarawak government was supporting any one company.
"We don't back people, otherwise there is no opportunity for choice," he said.
When asked if the Sarawak government would take a stake in the aluminium smelter, Taib sidestepped the question, insisting the market for production of electricity were among key issues that needed to be worked out first.
"We are flexible," he said of the possibility of Sarawak taking a stake.
He also confirmed the Bakun dam would have a production capacity of 2,400 megawatts, following reports the government was mulling measures to downsize the project.
Several companies have announced they were building smelters in Sarawak.
BHP Billiton and Japanese conglomerate Mitsubishi Corp in October issued a statement saying they would jointly build an alumimium smelter in Sarawak.
Malaysia's Smelter Asia recently said it has signed a deal with China Aluminium International Engineering Corp (Chalieco) to use its technology at a planned aluminum plant in Sarawak, which would produce 600,000 metric tons of aluminium a year.
It said Smelter Asia was expected to buy some 1,100 megawatts of electricity generated by the Bakun dam.
The Bakun dam project has been dogged with delays and setbacks since its approval in 1993. It had been slated to be completed by August 2007.
Initiated by former premier Mahathir Mohamad, the dam was taken over by the government and revived in 2001 after it was shelved during the 1997-1998 Asian financial crisis when the main operator fell into debt.
The dam, which involves flooding an area the size of Singapore, has attracted fierce criticism because of its harmful impact on the environment.