KUCHING: Latrobe Magnesium Ltd, an Australian public-listed company, has chosen Samalaju Industrial Park in Bintulu as the preferred site for its magnesium plant project, which will have an annual production capacity of 100,000 tonnes.
This was confirmed by Deputy Premier Datuk Amar Awang Tengah Ali Hasan, who added that the investors were attracted to Sarawak due to the availability of green energy.
“They have come to see me, and they are interested because of the availability of green energy (in Sarawak).
“So we welcome this investment, but of course, it must be of a high technology and it must be environmentally friendly,” he said.
He said this reporters when met at the Hari Raya open house hosted by Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg and his wife Puan Sri Datuk Amar Juma’ani Tun Tuanku Bujang at Borneo Convention Centre Kuching (BCCK) today.
Awang Tengah, who is also the Minister of International Trade and Investment said there are other investors who have shown interest to make investments in Sarawak.
“Therefore, they (investors) are going to Bintulu to do further study,” he said.
Meanwhile, according to an Australian news portal, one of the key benefits that Latrobe Magnesium Ltd recognised about the selected site was the availability of hydroelectric power generation, which allows the company to operate with 100 per cent renewable energy.
Besides that, it said that the local production of ferrosilicon in Samalaju is a significant advantage as it is one of the major reagents required for the proposed plant.
Latrobe Magnesium Ltd had also looked at Ras Al Khair in Saudi Arabia, and Duqm in Oman as potential places for the plant, however it has chosen Samalaju.
Upon evaluating the technical, financial, estimated capital expenditure requirements, risk and investment scenarios, the company said Samalaju was a ‘clear leader’.
Latrobe chief executive officer David Paterson said the selected location offers Latrobe the opportunity to deliver a project that will offer significant returns to shareholders as well position Latrobe to be the world’s cleanest and largest magnesium producer, by volume.
