Aug 7 2007
Rio Tinto and Malaysian conglomerate Cahya Mata Sarawak Berhad (CMS) today signed a Heads of Agreement for the proposed development of a world class aluminium smelter in the State of Sarawak.
Under the signing of the Heads of Agreement, detailed feasibility studies on the design, engineering, construction, commissioning and operation of an aluminium smelter will commence. The studies will take between 12 to 18 months to complete. They will examine the technical, environmental, operational, social and economic aspects of a smelter development.
The initial participating interests in the project will be 60 per cent Rio Tinto Aluminium and 40 per cent CMS. The smelter will be known as Sarawak Aluminium Company (SALCO).
The proposed smelter, to be located in Similajau, 60 kilometres from Bintulu town, would have an initial production capacity of 550,000 tonnes per year, with the capability to be expanded to 1.5 million tonnes. First production from the smelter could be expected in the fourth quarter of 2010. It is proposed that electricity for the smelter will come from the Bakun Hydroelectric Dam, which is currently under construction.