Kuala Lumpur, 10 June 2008 - The Department of Environment (DOE) has approved the Terms of Reference for the Detailed Environmental Impact Assessment (DEIA) study of the proposed RM7 billion aluminium smelter project at Similajau near Bintulu.

The proposed smelter, a joint venture between leading aluminium producer Rio Tinto Alcan and Cahya Mata Sarawak Berhad (CMS) will be operated by the Sarawak Aluminium Company (SALCO) and is expected to contribute up to RM 2.4 billion annually to Malaysia’s GDP.

Rio Tinto Alcan General Manager Smelter Project Development Matt Liddy said the approval of the Terms of Reference was a key milestone in development of the smelter project which was recently granted a manufacturing license by the Malaysian Industrial Development Authority (MIDA).

“SALCO encourages anyone interested in our proposed smelter to view the Terms of Reference for the DEIA that describes the studies we are undertaking for the DEIA. The DEIA will be a public document, and it must be approved in accordance with DOE guidelines before the construction of the smelter will begin,” Mr Liddy said.

The Terms of Reference for the DEIA will be available on the SALCO website:
(http://www.salco.com.my/SALCO-DEIA-ToR-April2008a.pdf).

He added that a large part of the DEIA was focused on community consultation, and SALCO was eager to engage and consult with stakeholders about the proposed aluminium smelter.

Approval of the Terms of Reference paves the way for the commencement of the environmental assessment including air quality, noise, flora and fauna, land use and social impact studies. Public health, waste management, transport, surface water and groundwater impacts will also be included in the comprehensive study. The DEIA is a core component of the smelter’s feasibility studies, which are being managed by Rio Tinto Alcan.

Leading local environmental consultant, Chemsain Konsultant Sdn Bhd of Malaysia, and URS Australia Pty Ltd have been appointed to conduct the DEIA, which is expected to take 15 months. The DEIA outcomes will be used to optimize the design of the smelter and will form the basis for the preparation of environmental management plans for SALCO’s construction and operation.

A team of environmental specialists will further develop an Environmental Management System for the project, to conform with ISO 14001, including ongoing monitoring of air, water and vegetation.

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