FREQUENTLY ASKED QUESTIONS
Q: What is the production capacity being considered and what are the options for growth?
The aluminium smelter at Similajau, Sarawak, would have an initial production capacity of 720,000 tonnes per year. Feasibility studies will examine options for growth, but the smelter could be expanded up to 1.5 million tonnes per year.
Q: Where would the smelter be located?
A parcel of state owned land in the Samalaju industrial area, 60 kilometres from Bintulu, has been allocated to the smelter, which will be one of the cornerstones of the Sarawak Corridor of Renewable Energy (SCORE). It is planned the smelter and some associated industries will be located within the industrial precinct.
Q. What is the timing of this smelter project? How long will it take to build? When would construction begin?
These details will be finalized in the feasibility studies. If the decision is made to develop the smelter then first production could begin two to three years after the completion of the studies, timed to coincide with the availability of power from the Bakun Dam and the development of a deep water port at Similajau.
Q: What does the smelter mean for Sarawak?
The SALCO aluminium smelter will be the catalyst for economic development and growth in Sarawak and Malaysia, and a cornerstone development of the Sarawak Corridor of Renewable Energy (SCORE) development. The proposed smelter would also foster development of additional infrastructure in Sarawak (including ports, roads, water supply and a new town). The SALCO aluminium smelter is expected to generate 1,900 direct jobs and 5,700 indirect jobs and create significant GDP for Malaysia and Sarawak. Revenue generation from exports of aluminium is expected to generate RM 2.4 billion annually for Malaysia’s GDP. |
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Q. What is the potential for downstream industries from the SALCO aluminium smelter for Sarawak?
Discussions have started with producers in downstream industries and SALCO wants to ensure that the benefits are shared locally. Downstream industries from the Aluminium Smelter can potentially double the GDP impact of the project.
Q. Why has Rio Tinto chosen to build the Smelter in Sarawak?
Sarawak is strategically located between alumina supplies and markets for aluminium. The energy for powering the smelter is readily available, and there is good investment potential in Malaysia. Rio Tinto has been considering Malaysia as an investment destination for more than 20 years. Malaysia is, currently, a net importer of aluminium. When the SALCO smelter is fully operational, Malaysia will become a net exporter of the commodity.
Q. Does Rio Tinto Alcan plan to build an alumina refinery in Samalaju?
Rio Tinto is not currently looking to build an alumina refinery in Samalaju. However, it does not rule out the possibility at some stage in the future. Any proposal for an alumina refinery would be subject to a separate Detailed Environmental Impact Assessment (DEIA) and feasibility study.
Q. What technology will be used in the SALCO Aluminium Smelter and what is its impact on the environment?
CMS and RTA have signed a MoU with French technology developer Aluminium Pechiney (a subsidiary on Rio Tinto Alcan) for the supply of AP37 technology for the SALCO smelter. AP37 is one of the world’s most advanced aluminium smelting production technologies available today, and one of the aluminium industry’s ‘cleanest’ technologies available, with very low greenhouse gas emission levels and consumption of raw materials and energy. Backed by 30 years of intensive research, Pechiney is renowned in the aluminium industry as being a leader in reduction cell technology. Choosing such technology is an integral part of SALCO’s goal to minimize its environmental impact.
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