7th Aug 2007 07:01
Rio Tinto PLC07 August 2007 Rio Tinto and Cahya Mata Sarawak sign Heads of agreement for Sarawak smelter Rio Tinto and Malaysian conglomerate Cahya Mata Sarawak Berhad (CMS) todaysigned a Heads of Agreement for the proposed development of a world classaluminium smelter in the State of Sarawak. Under the signing of the Heads of Agreement, detailed feasibility studies on thedesign, engineering, construction, commissioning and operation of an aluminiumsmelter will commence. The studies will take between 12 to 18 months tocomplete. They will examine the technical, environmental, operational, socialand economic aspects of a smelter development. The initial participating interests in the project will be 60 per cent Rio TintoAluminium and 40 per cent CMS. The smelter will be known as Sarawak AluminiumCompany (SALCO). The proposed smelter, to be located in Similajau, 60 kilometres from Bintulutown, would have an initial production capacity of 550,000 tonnes per year, withthe capability to be expanded to 1.5 million tonnes. First production from thesmelter could be expected in the fourth quarter of 2010. It is proposed thatelectricity for the smelter will come from the Bakun Hydroelectric Dam, which iscurrently under construction. "This is a very positive development for Rio Tinto and an important step in ourplans to develop new greenfield aluminium smelting capacity", said Rio TintoAluminium chief executive Oscar Groeneveld. "We look forward to working with the Malaysian Federal Government and SarawakState Government, and CMS on this project which has the potential to generatesignificant social and economic benefits for Malaysia and local communities inSarawak. "The smelter would provide approximately 1,200 direct jobs, and up to 3,500indirect jobs, and the opportunity to build an outstanding technical skill basefor Malaysian nationals, while adding billions of US dollars to Malaysia's GrossDomestic Product. "CMS and Rio Tinto Aluminium are committed to develop the project to worldclass environmental and community standards," Mr Groeneveld said. The Heads of Agreement allows for the training of Malaysian nationals inoverseas smelters and educational institutions. As well, significant trainingand skills development will take place in Sarawak. Once developed the projectwill represent one of the largest direct foreign investments in Malaysia,provide significant ongoing employment, boosts to small business in the region,and foster the development of support industries. CMS Group Chairman Tan Sri Syed Anwar Jamalullail said Rio Tinto was the rightpartner for the project given its experience in developing and operating worldclass smelters. CMS Group's resources, capabilities and experience in Sarawak'sinfrastructure development sector will complement the technical and managementskills of Rio Tinto. At the signing of the Heads of Agreement, Sarawak Chief Minister Pehin Sri AbdulTaib Mahmud said development of the aluminium smelter project in Similajau willbe the catalyst for the next phase of growth of Sarawak's economy based onenergy intensive industries. This is a project of national significance bringingconsiderable benefit to the economies of both Sarawak and Malaysia. In support of the 9th Malaysia Plan, the State Government has recentlyear-marked Sarawak's central region as a new industrial development corridor.With ample energy resources of oil and natural gas, coal deposits and hydropower from river systems, the Sarawak Government is looking to establish energyintensive industries in the area between Mukah and Similajau. Rio Tinto Aluminium is a major integrated producer of bauxite, alumina andaluminium with extensive experience in the design, engineering, construction,commissioning and operation of world class aluminium smelters. Rio Tinto Aluminium owns and operates four smelters including Australia'slargest, Boyne Smelters Limited in Queensland, which produces more than half amillion tonnes of aluminium each year from its three production lines. CMS is Sarawak's largest company in infrastructure development with businessinterests in construction, road maintenance, cement manufacturing, quarrying,construction materials and property development. The Group is also involved intrading of construction materials, technology, education and financial services. For further information, please contact: LONDON AUSTRALIA Media Relations Media Relations Christina Mills Ian Head Office: +44 (0) 20 8080 1306 Office: +61 (0) 3 9283 3620 Mobile: +44 (0) 7825 275 605 Mobile: +61 (0) 408 360 101 Nick Cobban Amanda Buckley Office: +44 (0) 20 8080 1305 Office: +61 (0) 3 9283 3627 Mobile: +44 (0) 7920 041 003 Mobile: +61 (0) 419 801 349 Investor Relations Investor Relations Nigel Jones Dave Skinner Office: +44 (0) 20 7753 2401 Office: +61 (0) 3 9283 3628 Mobile: +44 (0) 7917 227 365 Mobile: +61 (0) 408 335 309 David Ovington Susie Creswell Office: +44 (0) 20 7753 2326 Office: +61 (0) 3 9283 3639 Mobile: +44 (0) 7920 010 978 Mobile: +61 (0) 418 933 792 Website: www.riotinto.com High resolution photographs available at: www.newscast.co.uk Rio Tinto Aluminium Cahya Mata Sarawak Jim Singer Eda Ahmad Manager External Affairs Head - Group Corporate Communications Office: +61 (0) 7 3867 1698 Office: +60 (82) 238 888 Mobile: +61 (0) 419 704 653 Mobile: +60 19 826 1166 Website: www.riotintoaluminium.com.au Website: www.cmsb.com.my Email: [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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