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MEI Online: Commodities: Metallic Ores: Aluminium: Latest News: May 11th 2005


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:: CMS and Chinese Companies sign MoU for Aluminium Project

Sarawak-based Cahya Mata Sarawak Bhd (CMS) has signed a memorandum of understanding (MoU) in Shandong, China, with Luneng Group Ltd Co and Sinohydro Corporation for the three parties to undertake a feasibility study to set up, own and operate an aluminium smelter in Sarawak.

"The feasibility study will form preparations towards a project proposal which will be submitted to the Malaysian Government as formal registration of the consortiumís interest," CMS said in a statement.

The aluminium smelter would source power from the nearby US$1.2bil Bakun hydroelectric 2,400-megawatt dam project, which is under construction in Sarawak.

CMS in its statement said the parties - CMS, Luneng and Sinohydro - have agreed to work together to assess the viability of setting up an aluminium smelting plant, port and supporting infrastructure facilities and utilities, including participation in power generation and supply to the plant.

"There is a huge demand for aluminium, including from China. Should the feasibility study prove to be viable, the prospects are highly lucrative."




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