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MINING giant Rio Tinto has won Malaysian Government approval for a proposed $2.15 billion aluminium smelter project at Similajau in Sarawak.
The company said today it had been granted a manufacturing licence for the smelter, which is part of a joint venture with Cahya Mata Sarawak, by the Malaysian Industrial Development Authority. "This is a clear demonstration of the Malaysian federal government's confidence in the SALCO smelter project," Rio Tinto Alcan senior vice-president business development Sandeep Biswas said. Mr Biswas said it was a recognition of the significant benefits the smelter could deliver for Malaysia and the state of Sarawak. The proposed smelter will have a production capacity of 550,000 tonnes a year in its initial phase.
That capacity will be expanded to 1.5 million tonnes. It is expected to contribute up to RM2.4 billion a year to Malaysia's gross domestic product, Rio Tinto said, and could generate up to 4,700 jobs, directly and indirectly. Rio Tinto Alcan and CMS signed a heads of agreement in August 2007 to begin a feasibility study into the development of the smelter. Rio Tinto Alcan has a 60 per cent stake in Sarawak Aluminium Company, or SALCO, and Cahya Mata Sarawak holds a 40 per cent interest. - THE HERALD SUN
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