22 April 2010

http://biz.thestar.com.my/news/story.asp?file=/2010/4/22/business/6095585&sec=business

Manganese smelter planned in SCORE

By JACK WONG

KUCHING: The state government is in advanced negotiations with a foreign investor to set up a manganese smelter in Sarawak Corridor of Renewable Energy (SCORE), said State Planning Unit director Datuk Ismawi Ismuni.

“The investor will make the announcement (when an agreement is reached),” he told StarBiz after the 15th Malaysian Institute of Economic Research (MIER)-Sarawak Development Institute (SDI) annual corporate economic briefing at Grand Margherits Hotel here yesterday.

Ismawi, who is also SDI deputy chairman, said the proposed manganese smelter project would be the next major foreign direct investment (FDI) in SCORE, after the proposed aluminium smelters and polysilicon project

“The two aluminium smelter projects with investment of at least US$2bil each have already been issued with manufacturing licences,” he added.

In his response to a question from a participant if SCORE was getting the much needed FDIs, Ismawi said the economic development corridor had received significant FDIs.

“There are many more proposed projects in the process of negotiations, which will take time.”

Ismawi said talks on power purchase agreements between investors in energy-intensive industries in SCORE and the state-owned Sarawak Energy Bhd would require more time as such agreements would be for a minimium of 25 years.

“They (investors) have to study the pricing, incentives and stability (of power supply),” he added.

He said a Taiwanese company had made big investments in several projects in SCORE’s halal hub in Tanjung Manis.

On Sarawak’s delegation led by Chief Minister Tan Sri Abdul Taib Mahmud to China last week, Ismawi said many Chinese investors had indicated their interest to invest in SCORE.

“We try to identify areas where they can work with us,” he added.

Taib’s visit was to enhance economic ties between Sarawak and China and explore cooperation in technical and manpower training pertaining to the energy sector as Sarawak plans to develop a dozen hydroelectric dams.The delegation toured the Three Gorges hydro dam.

Ismawi said spending by the private and public sector in the construction of roads, water supply and power transmission lines in SCORE would be massive.

It was recently reported that some RM24bil had been invested in SCORE since its launch in February, 2008.

Besides aluminium, steel and gas, oil-based, timber, palm oil, livestock, aquaculture, marine engineering and tourism are the priority industries earmarked for SCORE.