24 February 2010
The CEO of the company overseeing a massive dam project on Penan tribal land in the Malaysian part of Borneo has come under scrutiny in his native Norway over violations of indigenous rights.
Norway’s Dagbladet newspaper questioned Sarawak Energy CEO Torstein Sjøtveit about the impact the project would have on the Penan. Sjøtveit claimed the Penan had been consulted, and that his company was complying with UN rules.
The UN states that developments on indigenous peoples’ land may only take place with their free, prior and informed consent. But the Penan affected by the Murum hydroelectric dam say they have been told they have no choice but to leave their land.
Dagbladet quotes a Penan man named Matu: ‘Those who want to take over our land… will not allow us to fish, hunt or collect berries and plants.’
Sjøtveit told Dagbladet that 1,350 people would be affected by the Murum dam project. He continued, ‘We are facing a dilemma between the need for development of the resources of the wider society and the wishes of the indigenous people to stay and live where they are.’
In September, six Penan and nine other indigenous people were arrested while trying to hand in a statement about their opposition to the dams to the office of Sarawak’s Chief Minister.
The Human Rights Commission of Malaysia, in a report on the Murum dam project, notes, ‘Instead of giving options to the Indigenous communities on whether or not to be resettled, the ‘consultations’ were carried out by the Government was [sic] only used as a mechanism to inform the communities of the Government’s decision and its impact towards those communities.’
The Murum dam is the first in a new series of large-scale hydroelectric projects being planned by the Sarawak state government, which will displace thousands of indigenous people. Critics in Malaysia have argued that the dams are superfluous to Sarawak’s energy needs.
Penan who were resettled to make way for Sarawak’s existing Bakun dam are unable to hunt or gather, and find it difficult to grow enough food on the small plots of land provided for them.
Source: Survival International Website
Link: http://www.survivalinternational.org/news/5592
Wednesday, February 24, 2010
Public Forum on Damming the Baram River
Dear Friends,
Invitation
Thousands of native peoples in Telang Usan will be affected by the proposed Baram Hydro-electric dam project. So far, little is known but with some available information it has to be shared and made public.
We are glad to inform that a Public Forum, entitled “Damming the Baram River” will be held as below:-
Date : 6 March 2010 (Saturday)
Time : 7.30 – 10.00 pm
Venue : Park Hotel, Miri
Panel speakers for the Forum will talk on the proposed dam project and its impacts on the native peoples of Telang Usan, Baram. This Forum is co-organise by the Jawatankuasa Tindakan Rakyat Baram, Borneo Resources Institute Malaysia (BRIMAS) and Sarawak Conservation Alliance for Natural Environment (SCANE).
With this, we are pleased to invite you as member of the native community in Telang Usan Baram to the forum. Please kindly extend this invitation to any of your friends and relatives.
Should you have further enquiries, please do not hesitate to contact the following persons:
1) Miss Flora (hp 013 8821953)
2) Miss Helan (hp 019 8943191)
Thank you for your very kind attention and cooperation. See you all there.
Best Regards,
Mark Bujang
Forum Organising Chair
Invitation
Thousands of native peoples in Telang Usan will be affected by the proposed Baram Hydro-electric dam project. So far, little is known but with some available information it has to be shared and made public.
We are glad to inform that a Public Forum, entitled “Damming the Baram River” will be held as below:-
Date : 6 March 2010 (Saturday)
Time : 7.30 – 10.00 pm
Venue : Park Hotel, Miri
Panel speakers for the Forum will talk on the proposed dam project and its impacts on the native peoples of Telang Usan, Baram. This Forum is co-organise by the Jawatankuasa Tindakan Rakyat Baram, Borneo Resources Institute Malaysia (BRIMAS) and Sarawak Conservation Alliance for Natural Environment (SCANE).
With this, we are pleased to invite you as member of the native community in Telang Usan Baram to the forum. Please kindly extend this invitation to any of your friends and relatives.
Should you have further enquiries, please do not hesitate to contact the following persons:
1) Miss Flora (hp 013 8821953)
2) Miss Helan (hp 019 8943191)
Thank you for your very kind attention and cooperation. See you all there.
Best Regards,
Mark Bujang
Forum Organising Chair
Thursday, February 18, 2010
Sarawak does technical studies on five proposed dams
17 February 2010
The state government, through Sarawak Energy Berhad, is now carrying out technical studies on five proposed hydroelectricity dams with a combined generation capacity of 6,000 megawatts (MW).
Second Minister of Planning and Resource Management Datuk Amar Awang Tengah Ali Hassan said the dams were Baleh (1,400MW), Pelagus (410MW), Baram (1,200MW), Limbang (245MW) and Lawas (1,000MW).
“Apart from hydroelectricity, Sarawak is also focusing on coal-fired power plants to generate power for the state as well as for export,” he told reporters after the handing over of a feasibility study on the connection of electricity between Sarawak and Brunei here today.
He said two other hydroelectricity dams — the 944MW Murum Dam and the 2,400MW Bakun — would start operations in 2013 and at end of this year respectively.
He said Sarawak now had two coal-fired power plants — in Matadeng, Mukah and in Senari, Kuching — each with the capacity of about 500MW.
On the feasibility study, he said, it showed that Brunei had the potential to import up to 100MW of electricity in 2012 and up to 150MW in 2013.
Meanwhile, Brunei Energy Minister Datuk Seri Pahlawan Mohammad Daud said cooperation between Brunei and Sarawak in energy supply would benefit both sides.
He said Brunei needed additional energy resources due to the growing demand for electricity. — Bernama
Source: Malaysian Insider
Link: http://www.themalaysianinsider.com/index.php/malaysia/53446-sarawak-does-technical-studies-on-five-proposed-dams
The state government, through Sarawak Energy Berhad, is now carrying out technical studies on five proposed hydroelectricity dams with a combined generation capacity of 6,000 megawatts (MW).
Second Minister of Planning and Resource Management Datuk Amar Awang Tengah Ali Hassan said the dams were Baleh (1,400MW), Pelagus (410MW), Baram (1,200MW), Limbang (245MW) and Lawas (1,000MW).
“Apart from hydroelectricity, Sarawak is also focusing on coal-fired power plants to generate power for the state as well as for export,” he told reporters after the handing over of a feasibility study on the connection of electricity between Sarawak and Brunei here today.
He said two other hydroelectricity dams — the 944MW Murum Dam and the 2,400MW Bakun — would start operations in 2013 and at end of this year respectively.
He said Sarawak now had two coal-fired power plants — in Matadeng, Mukah and in Senari, Kuching — each with the capacity of about 500MW.
On the feasibility study, he said, it showed that Brunei had the potential to import up to 100MW of electricity in 2012 and up to 150MW in 2013.
Meanwhile, Brunei Energy Minister Datuk Seri Pahlawan Mohammad Daud said cooperation between Brunei and Sarawak in energy supply would benefit both sides.
He said Brunei needed additional energy resources due to the growing demand for electricity. — Bernama
Source: Malaysian Insider
Link: http://www.themalaysianinsider.com/index.php/malaysia/53446-sarawak-does-technical-studies-on-five-proposed-dams
Wednesday, February 17, 2010
Friday, February 12, 2010
Chan allays concerns over Bakun power for peninsula
12 February 2010
By JACK WONG
KUCHING: The electricity generated by the Bakun hydro-electric dam in the upper Rejang River basin in central Sarawak will be exported to Peninsular Malaysia as planned.
This is because the power requirements of the energy-intensive industries to be set up in the Sarawak Corridor of Renewable Energy (SCORE) will be met by other hydro dams to be built.
Sarawak Deputy Chief Minister Tan Sri George Chan Hong Nam said Sarawak Energy Bhd’s (SEB) Murum hydro dam project, currently under construction upstream of the Bakun dam, would generate 900MW when completed by 2013.
He said the Bakun dam would initially supply power to industries like aluminium smelters to be set up in SCORE until the proposed submarine cables to transmit power from Sarawak to the peninsula were ready.
“There is no need for concern,’’ said Chan, who is also state Industrial Development Minister, when asked about a StarBiz report yesterday regarding uncertainty being raised on whether Bakun power would be sold to Tenaga Nasional Bhd (TNB) for use in the peninsula as the electricity was needed to power the proposed aluminium smelters to be built in SCORE.
Doubts have also been raised on the fate of the proposed submarine cables if power from the Bakun dam is to be consumed by Sarawak’s energy-intensive industries.
The two aluminium smelter projects will be developed respectively by the joint ventures between GIIG Holdings Sdn Bhd and Aluminium Corp of China Ltd as well as between Rio Tinto Alcan and Cahya Mata Sarawak Bhd.
The Bakun dam, which is developed by Sarawak Hidro Sdn Bhd, has an installed capacity of 2,400MW.
It is expected to produce its first 300MW by the end of this year and to be fully operational by 2011.
The first of the proposed submarine cables, according to Sarawak Hiro managing director Zulkifle Osman recently, is only expected to be completed in 2016, and the second cable a year later.
Each of the cable will transmit 800MW.
Under a heads of agreement signed by SEB and TNB in 2008, SEB is expected to sell 3,000MW to TNB from 2017 to 2020, and export an additional 5,000MW to TNB from 2021 to 2030.
Sarawak has the potential to generate some 20,000MW through hydro dam projects by 2030.
SEB, which generates and distributes electricity in Sarawak, was taken private by the Sarawak government recently.
Chan said the development of the proposed hydro dams had been timed to meet the requirements of industries.
These state-owned dams, like Murum, will replace Bakun to supply energy to indusrties in SCORE once Bakun starts to export its electricity to the peninsula.
The proposed dams planned by SEB include in Baram (1,000MW) and Balleh (900MW) which will be built by 2015 and 2016 respectively.
The proposed Balleh dam is also located in the upper Rejang River basin.
SEB has plans to also develop more coal-powered power stations.
Source: The Star
Link: http://biz.thestar.com.my/news/story.asp?file=/2010/2/12/business/20100212073333&sec=business
By JACK WONG
KUCHING: The electricity generated by the Bakun hydro-electric dam in the upper Rejang River basin in central Sarawak will be exported to Peninsular Malaysia as planned.
This is because the power requirements of the energy-intensive industries to be set up in the Sarawak Corridor of Renewable Energy (SCORE) will be met by other hydro dams to be built.
Sarawak Deputy Chief Minister Tan Sri George Chan Hong Nam said Sarawak Energy Bhd’s (SEB) Murum hydro dam project, currently under construction upstream of the Bakun dam, would generate 900MW when completed by 2013.
He said the Bakun dam would initially supply power to industries like aluminium smelters to be set up in SCORE until the proposed submarine cables to transmit power from Sarawak to the peninsula were ready.
“There is no need for concern,’’ said Chan, who is also state Industrial Development Minister, when asked about a StarBiz report yesterday regarding uncertainty being raised on whether Bakun power would be sold to Tenaga Nasional Bhd (TNB) for use in the peninsula as the electricity was needed to power the proposed aluminium smelters to be built in SCORE.
Doubts have also been raised on the fate of the proposed submarine cables if power from the Bakun dam is to be consumed by Sarawak’s energy-intensive industries.
The two aluminium smelter projects will be developed respectively by the joint ventures between GIIG Holdings Sdn Bhd and Aluminium Corp of China Ltd as well as between Rio Tinto Alcan and Cahya Mata Sarawak Bhd.
The Bakun dam, which is developed by Sarawak Hidro Sdn Bhd, has an installed capacity of 2,400MW.
It is expected to produce its first 300MW by the end of this year and to be fully operational by 2011.
The first of the proposed submarine cables, according to Sarawak Hiro managing director Zulkifle Osman recently, is only expected to be completed in 2016, and the second cable a year later.
Each of the cable will transmit 800MW.
Under a heads of agreement signed by SEB and TNB in 2008, SEB is expected to sell 3,000MW to TNB from 2017 to 2020, and export an additional 5,000MW to TNB from 2021 to 2030.
Sarawak has the potential to generate some 20,000MW through hydro dam projects by 2030.
SEB, which generates and distributes electricity in Sarawak, was taken private by the Sarawak government recently.
Chan said the development of the proposed hydro dams had been timed to meet the requirements of industries.
These state-owned dams, like Murum, will replace Bakun to supply energy to indusrties in SCORE once Bakun starts to export its electricity to the peninsula.
The proposed dams planned by SEB include in Baram (1,000MW) and Balleh (900MW) which will be built by 2015 and 2016 respectively.
The proposed Balleh dam is also located in the upper Rejang River basin.
SEB has plans to also develop more coal-powered power stations.
Source: The Star
Link: http://biz.thestar.com.my/news/story.asp?file=/2010/2/12/business/20100212073333&sec=business
Sarawak gets first crack at Bakun power
Friday, 12 February 2010 16:33
MIRI – The initial power supplied by the Bakun hydroelectric project in Sarawak needs to be first used in the state before being expanded to Peninsular Malaysia, Energy, Green Technology and Water Minister Peter Chin Fah Kui said today.
He said that since the project was expected to begin transmitting power by early next year, there would be a gap in terms of waiting for the completion of the undersea cable project to supply electricity from Sarawak to Peninsular Malaysia.
2017 deadline Speaking to reporters here, he said the undersea cable project was expected to be completed by 2017 and until then, power from the Bakun project had to be used properly for the development in the state.
Chin was commenting on a recent concern over whether Bakun power would be sold to Tenaga Nasional Bhd for use in the peninsula as the electricity was needed to power two proposed aluminium smelters to be built in the Sarawak Corridor of Renewable Energy.
"This smelter projects can take up the electricity that can be produced by the Bakun almost immediately when it is ready (to supply power)," he said.
The two smelter projects are those initiated by the joint ventures between GIIG Holdings Sdn Bhd and Aluminium Corp of China Ltd as well as between Rio Tinto Alcan and Cahya Mata Sarawak Bhd.
Maximum power of 2,400MWChin said the Bakun hydroelectric project upon full completion would be able to generate about 2,400 megawatts of power through its four turbines.
However, the power generated from just one of the turbines would be sufficient for the initial operations of the two smelters, he said.Chin also said that his ministry would continue strategising with TNB and the Sarawak government in planning the power requirements in Peninsular Malaysia and Sabah as well as to meet the needs of neighbouring countries.
Apart from Bakun, he said the Sarawak government had already planned to build several other major hydroelectric projects in the state to meet future energy needs.
Source: Malaysian Mirror
Link: http://www.malaysianmirror.com/homedetail/45-home/29955-sarawak-gets-first-crack-at-bakun-power
MIRI – The initial power supplied by the Bakun hydroelectric project in Sarawak needs to be first used in the state before being expanded to Peninsular Malaysia, Energy, Green Technology and Water Minister Peter Chin Fah Kui said today.
He said that since the project was expected to begin transmitting power by early next year, there would be a gap in terms of waiting for the completion of the undersea cable project to supply electricity from Sarawak to Peninsular Malaysia.
2017 deadline Speaking to reporters here, he said the undersea cable project was expected to be completed by 2017 and until then, power from the Bakun project had to be used properly for the development in the state.
Chin was commenting on a recent concern over whether Bakun power would be sold to Tenaga Nasional Bhd for use in the peninsula as the electricity was needed to power two proposed aluminium smelters to be built in the Sarawak Corridor of Renewable Energy.
"This smelter projects can take up the electricity that can be produced by the Bakun almost immediately when it is ready (to supply power)," he said.
The two smelter projects are those initiated by the joint ventures between GIIG Holdings Sdn Bhd and Aluminium Corp of China Ltd as well as between Rio Tinto Alcan and Cahya Mata Sarawak Bhd.
Maximum power of 2,400MWChin said the Bakun hydroelectric project upon full completion would be able to generate about 2,400 megawatts of power through its four turbines.
However, the power generated from just one of the turbines would be sufficient for the initial operations of the two smelters, he said.Chin also said that his ministry would continue strategising with TNB and the Sarawak government in planning the power requirements in Peninsular Malaysia and Sabah as well as to meet the needs of neighbouring countries.
Apart from Bakun, he said the Sarawak government had already planned to build several other major hydroelectric projects in the state to meet future energy needs.
Source: Malaysian Mirror
Link: http://www.malaysianmirror.com/homedetail/45-home/29955-sarawak-gets-first-crack-at-bakun-power
Sarawak smelters raise uncertainty on Bakun cable project
11 February 2010
By ANITA GABRIEL
anita@thestar.com.my
PETALING JAYA: The number of power-hungry aluminium smelters that are being planned in Sarawak has raised uncertainty on the fate of the multi-billion ringgit submarine cable project meant to transmit power from Bakun hydroelectric dam in the state to the peninsula.
This is clearly causing some unease, not least for national utility Tenaga Nasional Bhd, which needs to plan the plant-ups to cater for future electricity demand in Peninsular Malaysia.
“Yes, it is a concern to us. We are seeking Government direction on this matter,” said TNB president and chief executive Datuk Seri Che Khalib Mohamad Noh.
Under the proposed plan, the cable project involving the construction of a 1,000km high-voltage direct-current transmission line and a 680-km undersea cable, was expected to be completed in 2015 with an open tender process to be launched in the first quarter of this year. Each cable would be able to transmit 800MW.
“There is lack of clarity. Will the electricity generated by Bakun be consumed by the state or will some of it be sold to the peninsula? There has to be a guaranteed supply of electricity at a certain amount to the peninsula. Otherwise, it will be difficult to make the financial case for the cables,” said an analyst.
The Bakun dam project, with an installed capacity of 2,400MW, is expected to turn up some 300MW of juice by August this year and to be fully commissioned by October 2011. The spate of mega projects being proposed (more specifically aluminium smelters, which are major energy guzzlers) under the state’s development agenda Sarawak Corridor of Renewable Energy (Score) has raised the question on whether there will be enough power to be shared from Bakun with the peninsula.
It was announced on Tuesday that Tan Sri Syed Mokhtar Al-Bukhary’s controlled GIIG Holdings Sdn Bhd had tied up with Aluminium Corp of China Ltd (Chalco) to develop a US$1bil smelter plant with an initial capacity of 330,000 tonnes per year in Samalaju Industrial Park in Bintulu; the plant will need some 600MW of electricity.
GIIG director Shahrir Shariff was reported to have said (after the signing ceremony on Tuesday) that the project was mooted back in 2002 but was “stalled because the Government decided that power was supposed to come to the peninsula via the submarine cable. We’ve resumed (the smelter plan) because we’ve been made to understand from the state government that the Bakun power is now meant for Score.”
There is also another multi-billion ringgit aluminium smelter that is being planned in the same industrial area, this time by a 60:40 joint venture between Rio Tinto Alcan and Cahya Mata Sarawak Bhd with an initial capacity of 550,000 tonnes a year. A memorandum of understanding was signed back in 2008 for Sarawak Energy Bhd (SEB) to supply between 900MW and 1,200MW of power to this smelter, presumably also from Bakun.
Furthermore, a month ago, 1Malaysia Development Bhd signed a “cooperation framework agreement” with state-owned State Grid Corp of China (SGCC) to jointly undertake projects in Score which could create as much as US$11bil worth of economic value. Part of this plan, it is believed, also involves a massive aluminium smelter and hydro dam projects.
“With all these projects in the pipeline, it looks like it’s no longer the case of Bakun having too much excess capacity which it can transmit to the peninsula. The cost of transmitting electricity or building the cables have to be justified by the amount of capacity transmitted to the peninsula. You can’t build such costly cables if you don’t know how much will be transmitted across. The line only works if there’s substantial power coming across,” said a peeved observer.
The motivation for Sarawak to tap the power capacity to generate economic activity is clear. “If the state can generate a certain amount of economic activity by using its own resources, in this instance, hydro, why not? The multiplier impact for the state outweighs what it could get by selling the power to the peninsula,” said an analyst.
On the other hand, the industry observer said: “The state would rather sell cheap power to energy-hungry industries that pollute the environment at the cost of stirring economic activity nationwide.”
Herein lies the crux of this Bakun dilemma for the peninsula – could this be a play between East and West Malaysia?
Source: The Star
Link: http://biz.thestar.com.my/news/story.asp?file=/2010/2/11/business/5654307&sec=business
By ANITA GABRIEL
anita@thestar.com.my
PETALING JAYA: The number of power-hungry aluminium smelters that are being planned in Sarawak has raised uncertainty on the fate of the multi-billion ringgit submarine cable project meant to transmit power from Bakun hydroelectric dam in the state to the peninsula.
This is clearly causing some unease, not least for national utility Tenaga Nasional Bhd, which needs to plan the plant-ups to cater for future electricity demand in Peninsular Malaysia.
“Yes, it is a concern to us. We are seeking Government direction on this matter,” said TNB president and chief executive Datuk Seri Che Khalib Mohamad Noh.
Under the proposed plan, the cable project involving the construction of a 1,000km high-voltage direct-current transmission line and a 680-km undersea cable, was expected to be completed in 2015 with an open tender process to be launched in the first quarter of this year. Each cable would be able to transmit 800MW.
“There is lack of clarity. Will the electricity generated by Bakun be consumed by the state or will some of it be sold to the peninsula? There has to be a guaranteed supply of electricity at a certain amount to the peninsula. Otherwise, it will be difficult to make the financial case for the cables,” said an analyst.
The Bakun dam project, with an installed capacity of 2,400MW, is expected to turn up some 300MW of juice by August this year and to be fully commissioned by October 2011. The spate of mega projects being proposed (more specifically aluminium smelters, which are major energy guzzlers) under the state’s development agenda Sarawak Corridor of Renewable Energy (Score) has raised the question on whether there will be enough power to be shared from Bakun with the peninsula.
It was announced on Tuesday that Tan Sri Syed Mokhtar Al-Bukhary’s controlled GIIG Holdings Sdn Bhd had tied up with Aluminium Corp of China Ltd (Chalco) to develop a US$1bil smelter plant with an initial capacity of 330,000 tonnes per year in Samalaju Industrial Park in Bintulu; the plant will need some 600MW of electricity.
GIIG director Shahrir Shariff was reported to have said (after the signing ceremony on Tuesday) that the project was mooted back in 2002 but was “stalled because the Government decided that power was supposed to come to the peninsula via the submarine cable. We’ve resumed (the smelter plan) because we’ve been made to understand from the state government that the Bakun power is now meant for Score.”
There is also another multi-billion ringgit aluminium smelter that is being planned in the same industrial area, this time by a 60:40 joint venture between Rio Tinto Alcan and Cahya Mata Sarawak Bhd with an initial capacity of 550,000 tonnes a year. A memorandum of understanding was signed back in 2008 for Sarawak Energy Bhd (SEB) to supply between 900MW and 1,200MW of power to this smelter, presumably also from Bakun.
Furthermore, a month ago, 1Malaysia Development Bhd signed a “cooperation framework agreement” with state-owned State Grid Corp of China (SGCC) to jointly undertake projects in Score which could create as much as US$11bil worth of economic value. Part of this plan, it is believed, also involves a massive aluminium smelter and hydro dam projects.
“With all these projects in the pipeline, it looks like it’s no longer the case of Bakun having too much excess capacity which it can transmit to the peninsula. The cost of transmitting electricity or building the cables have to be justified by the amount of capacity transmitted to the peninsula. You can’t build such costly cables if you don’t know how much will be transmitted across. The line only works if there’s substantial power coming across,” said a peeved observer.
The motivation for Sarawak to tap the power capacity to generate economic activity is clear. “If the state can generate a certain amount of economic activity by using its own resources, in this instance, hydro, why not? The multiplier impact for the state outweighs what it could get by selling the power to the peninsula,” said an analyst.
On the other hand, the industry observer said: “The state would rather sell cheap power to energy-hungry industries that pollute the environment at the cost of stirring economic activity nationwide.”
Herein lies the crux of this Bakun dilemma for the peninsula – could this be a play between East and West Malaysia?
Source: The Star
Link: http://biz.thestar.com.my/news/story.asp?file=/2010/2/11/business/5654307&sec=business
US$1b JV smelter for Sarawak
10 February 2010
By B.K. SIDHU
Syed Mokhtar’s GIIG to team up with China’s Aluminium Corp
bksidhu@thestar.com.my
PUTRAJAYA: GIIG Holdings Sdn Bhd, a company controlled by billionaire Tan Sri Syed Mokhtar Al-Bukhary, and Aluminium Corp of China Ltd (Chalco), the world’s second largest producer of alumina, have teamed up to jointly develop an aluminium smelter plant in Samalaju Industrial Park in Bintulu, Sarawak at the cost of US$1bil.
The smelter plant will have an initial annual production capacity of 330,000 tonnes but it could rise to 1.25 million tonnes.
GIIG director Shahrir Shariff said construction of the plant would begin in the first quarter of next year, with completion expected in 36 months.
The project would source power from the 2,400MW Bakun dam.
Smelter Asia Sdn Bhd will be the special purpose vehicle that will develop the smelter plant, and it will have three shareholders, namely GIIG Holdings Sdn Bhd, Chalco and a Sarawak company.
Details on the equity portion for the shareholding structure were not provided as it was still being worked out but Shahrir told reporters after the signing ceremony yesterday that Malaysian shareholders would hold a majority stake in the venture.
Both GIIG and Chalco entered into a heads of agreement yesterday to develop the smelter plant, witnessed by Prime Minister Datuk Seri Najib Tun Razak and former premier Tun Dr Mahathir Mohamad.
The idea of setting up an aluminium smelter in Sarawak was first mooted in 2002 to capture part of the growing demand for aluminium in Asia, with plans to use excess power from the Bakun Project.
With the agreement inked, Shahrir said talks with Sarawak Energy Bhd (SEB) for the purchase of power for the smelter project would resume and that he hoped to “get a reasonable rate for the supply of energy for the plant.’’ The plant would need 600MW of power.
“We are looking at debt and equity funding for the smelter and talking to some Chinese and other banks,’’ he said when asked on how the project would be funded.
Chalco’s shares are jointly listed on the New York Stock Exchange and the stock exchanges of Hong Kong and Shanghai.
It owns and operates 31 companies and subsidiaries across China, has assets worth US$20bil and recorded group revenue of US$11.3bil for 2008.
Najib said the JV between Malaysia and China to develop an aluminium smelting plant in Samalaju Industrial Park reflected the confidence the Chinese government and investors had in making large investments in the country, and in Sarawak specifically.
“This gives a positive sign to the investment climate in Malaysia. I hope this marks a recovery in economy this year. Many more foreign investments should be flowing into our country,’’ Najib said.
He added that the development of the smelting industry in Sarawak would also provide a strong drive in the development of Score (Sarawak Corridor of Renewable Energy).
Industries that use energy and that can generate high income, as well as high-value and high-tech industries can be located in Sarawak, according to Najib.
Smelter Asia will be the second smelter project in the Samalaju Industrial Park, after another project by Salco, which is a 40:60 joint venture between Cahya Mata Sarawak Bhd and Rio Tinto Alcan (a subsidiary of Rito Tinto Aluminium, a leading global mining company based in Australia).
On whether there was still room to locate large smelting plants in Sarawak, Najib said: “Two licences have been given out. That is the commitment by the Government. We just have to work out the supply of power.”
He did not name the licensee but Smelter Asia said it had obtained all the necessary licences from the International Trade and Industry Ministry while it is learnt that Comalco, now known as Rio Tinto, also has a licence to set up a smelter plant in Sarawak.
Last month the State Grid of China, the world’s largest utility company, inked an agreement with 1Malaysia Development Bhd as the former has plans to invest in Sarawak’s economic corridor.
Some of the projects these parties may jointly pursue include an aluminium smelter and three hydropower plants, but details are still sketchy.
Source: The Star
Link: http://biz.thestar.com.my/news/story.asp?file=/2010/2/10/business/5647727&sec=business
By B.K. SIDHU
Syed Mokhtar’s GIIG to team up with China’s Aluminium Corp
bksidhu@thestar.com.my
PUTRAJAYA: GIIG Holdings Sdn Bhd, a company controlled by billionaire Tan Sri Syed Mokhtar Al-Bukhary, and Aluminium Corp of China Ltd (Chalco), the world’s second largest producer of alumina, have teamed up to jointly develop an aluminium smelter plant in Samalaju Industrial Park in Bintulu, Sarawak at the cost of US$1bil.
The smelter plant will have an initial annual production capacity of 330,000 tonnes but it could rise to 1.25 million tonnes.
GIIG director Shahrir Shariff said construction of the plant would begin in the first quarter of next year, with completion expected in 36 months.
The project would source power from the 2,400MW Bakun dam.
Smelter Asia Sdn Bhd will be the special purpose vehicle that will develop the smelter plant, and it will have three shareholders, namely GIIG Holdings Sdn Bhd, Chalco and a Sarawak company.
Details on the equity portion for the shareholding structure were not provided as it was still being worked out but Shahrir told reporters after the signing ceremony yesterday that Malaysian shareholders would hold a majority stake in the venture.
Both GIIG and Chalco entered into a heads of agreement yesterday to develop the smelter plant, witnessed by Prime Minister Datuk Seri Najib Tun Razak and former premier Tun Dr Mahathir Mohamad.
The idea of setting up an aluminium smelter in Sarawak was first mooted in 2002 to capture part of the growing demand for aluminium in Asia, with plans to use excess power from the Bakun Project.
With the agreement inked, Shahrir said talks with Sarawak Energy Bhd (SEB) for the purchase of power for the smelter project would resume and that he hoped to “get a reasonable rate for the supply of energy for the plant.’’ The plant would need 600MW of power.
“We are looking at debt and equity funding for the smelter and talking to some Chinese and other banks,’’ he said when asked on how the project would be funded.
Chalco’s shares are jointly listed on the New York Stock Exchange and the stock exchanges of Hong Kong and Shanghai.
It owns and operates 31 companies and subsidiaries across China, has assets worth US$20bil and recorded group revenue of US$11.3bil for 2008.
Najib said the JV between Malaysia and China to develop an aluminium smelting plant in Samalaju Industrial Park reflected the confidence the Chinese government and investors had in making large investments in the country, and in Sarawak specifically.
“This gives a positive sign to the investment climate in Malaysia. I hope this marks a recovery in economy this year. Many more foreign investments should be flowing into our country,’’ Najib said.
He added that the development of the smelting industry in Sarawak would also provide a strong drive in the development of Score (Sarawak Corridor of Renewable Energy).
Industries that use energy and that can generate high income, as well as high-value and high-tech industries can be located in Sarawak, according to Najib.
Smelter Asia will be the second smelter project in the Samalaju Industrial Park, after another project by Salco, which is a 40:60 joint venture between Cahya Mata Sarawak Bhd and Rio Tinto Alcan (a subsidiary of Rito Tinto Aluminium, a leading global mining company based in Australia).
On whether there was still room to locate large smelting plants in Sarawak, Najib said: “Two licences have been given out. That is the commitment by the Government. We just have to work out the supply of power.”
He did not name the licensee but Smelter Asia said it had obtained all the necessary licences from the International Trade and Industry Ministry while it is learnt that Comalco, now known as Rio Tinto, also has a licence to set up a smelter plant in Sarawak.
Last month the State Grid of China, the world’s largest utility company, inked an agreement with 1Malaysia Development Bhd as the former has plans to invest in Sarawak’s economic corridor.
Some of the projects these parties may jointly pursue include an aluminium smelter and three hydropower plants, but details are still sketchy.
Source: The Star
Link: http://biz.thestar.com.my/news/story.asp?file=/2010/2/10/business/5647727&sec=business
Power transmission to cater for smelter project
5 February 2010
By JACK WONG
jackwong@thestar.com.my
KUCHING: The RM209mil Bakun-Similajau overhead transmission system project is for the import of additional electricity into the Sarawak state power grid system but primarily, to meet the power requirements of the proposed aluminium smelter project in Samalaju Industrial Park in Bintulu Division.
The project was awarded by Sarawak Energy Bhd (SEB) to Sinohydro-Naim joint venture last month. Sinohydro and Naim Holdings Bhd have a 60:40 share respectively in the joint venture.
“Sinohydro will provide the technological know-how and expertise in the implementation of the project,” said Naim corporate service and human resource senior director Ricky Kho.
He said the project would involve the construction of two transmission lines, one of which is a 112-km double-circuit quad bundle 275-kV line from the proposed Similajau power substation to the Bakun hydroelectric dam substation in the upper Rejang River Basin.
The second line would involve the construction of a 26-km double-circuit quad bundle 275-kV line from the proposed Similajau substation to the proposed aluminium smelter substation, Kho said.
“The project will develop the second phase of transmission interconnection between Bakun and Similajau 275-kV substation.
“It serves to reinforce power import of more than 1,000MW additional power from Bakun dam into the state power grid system, and between 900MW and 1,200MW from Bakun dam into the proposed aluminium smelter in the Samalaju Industrial Park,” he told StarBiz yesterday.
Kho said preliminary works of the Bakun-Similajau transmission line project started a month ago.
The project’s completion date under the two-year contract is Jan 3, 2012.
In 2007, Rio Tinto Alcan, the world’s third largest mining group, and Cahya Mata Sarawak Bhd (CMSB), announced the setting up of a 60:40 joint venture to invest in a proposed RM7bil aluminium smelter in Samalaju Industrial Park. The proposed smelter is expected to start with an initial production of 550,000 tonnes a year, which will eventually be raised to 1.5mil tonnes annually.
Under a memorandum of undstanding (MoU) signed between SEB, CMSB and Rio Tinto in 2008, SEB would supply power of between 900MW and 1,200MW to the proposed Rio Tinto-CMSB JV aluminium smelter. Bakun dam, which could generate up to 2,400MW, is expected to start producing 300MW in the fourth quarter of this year.
— By JACK WONG
Source: The Star
Link: http://biz.thestar.com.my/news/story.asp?file=/2010/2/5/business/5615539&sec=business
By JACK WONG
jackwong@thestar.com.my
KUCHING: The RM209mil Bakun-Similajau overhead transmission system project is for the import of additional electricity into the Sarawak state power grid system but primarily, to meet the power requirements of the proposed aluminium smelter project in Samalaju Industrial Park in Bintulu Division.
The project was awarded by Sarawak Energy Bhd (SEB) to Sinohydro-Naim joint venture last month. Sinohydro and Naim Holdings Bhd have a 60:40 share respectively in the joint venture.
“Sinohydro will provide the technological know-how and expertise in the implementation of the project,” said Naim corporate service and human resource senior director Ricky Kho.
He said the project would involve the construction of two transmission lines, one of which is a 112-km double-circuit quad bundle 275-kV line from the proposed Similajau power substation to the Bakun hydroelectric dam substation in the upper Rejang River Basin.
The second line would involve the construction of a 26-km double-circuit quad bundle 275-kV line from the proposed Similajau substation to the proposed aluminium smelter substation, Kho said.
“The project will develop the second phase of transmission interconnection between Bakun and Similajau 275-kV substation.
“It serves to reinforce power import of more than 1,000MW additional power from Bakun dam into the state power grid system, and between 900MW and 1,200MW from Bakun dam into the proposed aluminium smelter in the Samalaju Industrial Park,” he told StarBiz yesterday.
Kho said preliminary works of the Bakun-Similajau transmission line project started a month ago.
The project’s completion date under the two-year contract is Jan 3, 2012.
In 2007, Rio Tinto Alcan, the world’s third largest mining group, and Cahya Mata Sarawak Bhd (CMSB), announced the setting up of a 60:40 joint venture to invest in a proposed RM7bil aluminium smelter in Samalaju Industrial Park. The proposed smelter is expected to start with an initial production of 550,000 tonnes a year, which will eventually be raised to 1.5mil tonnes annually.
Under a memorandum of undstanding (MoU) signed between SEB, CMSB and Rio Tinto in 2008, SEB would supply power of between 900MW and 1,200MW to the proposed Rio Tinto-CMSB JV aluminium smelter. Bakun dam, which could generate up to 2,400MW, is expected to start producing 300MW in the fourth quarter of this year.
— By JACK WONG
Source: The Star
Link: http://biz.thestar.com.my/news/story.asp?file=/2010/2/5/business/5615539&sec=business
Expert: Batu Niah tremor may be linked to Bakun dam
3 February 2010
By HILARY CHIEW
hnchiew@thestar.com.my
THERE could be more minor earthquakes like the one in Batu Niah on Monday with the construction of more dams in the Rejang river basin.
Mild tremors were felt in Batu Niah and Suai following a moderate earthquake in Batu Niah.
The Meteorological Services Department said the quake in the morning measured 3.2 on the Richter Scale.
University Malaysia Sabah Natural Disaster Research Unit head Dr Felix Tongkul said that dam development had long been associated with disturbances to the geological structure beyond the dam sites.
“The proposed construction of more dams in the Bintulu interior is of concern. We suspect the Batu Niah tremor could be linked to the Bakun dam where several fault lines pass.
“The pending impoundment of the dam will create an unnatural load in the area and further destabilise the weak zones,” he said.
Tongkul said that more seismic activities could be expected and the situation would be closely monitored.
Geological studies had been carried out prior to the construction of the 2,400MW hydro-electric dam, he added.
Leading seismologist Harsh K. Gupta, in a 2002 article on Reservoir-Induced Seismicity (RIS) published in Earth-Science Review noted that there are over 90 identified sites of earthquakes triggered by impoundment of reservoirs globally.
Following the tragic Sichuan quake in May 2008, scientists in China and the United States linked the incident to the weight of the Zipingpu dam on which impoundment began in 2004.
The International Commission on Large Dams recommends that RIS should be considered for reservoirs deeper than 100m. Bakun’s reservoir is 194m deep.
Gupta concluded that the depth and volume of a reservoir played a significant role in triggering earthquakes and that seismic activities could happen immediately after the filling of water begins or after a time lag.
The controversial RM7bil dam which displaced 15,000 indigenous people was scheduled for impoundment last November but this was deferred pending approval from authorities.
The Sarawak government has announced the construction of another 12 dams in the state and half of them will be located in the Rejang basin.
Work on the 900MW Murum dam on one of the Rejang’s tributaries began in 2008.
The other five are Belaga (260MW), Lanau (290MW), Baleh (1,400MW), Belepeh (110MW) and Mentjawa (300MW).
The RM3bil Murum dam located 470km inland from Miri will flood about 30,000ha of the Murum Valley and displace 2,800 inhabitants from eight settlements.
Some villagers are resisting relocation as they fear the same fate as those resettled in Sungai Asap as a result of the Bakun dam.
Source: The Star
Link: http://thestar.com.my/metro/story.asp?file=/2010/2/3/southneast/5578071&sec=southneast
By HILARY CHIEW
hnchiew@thestar.com.my
THERE could be more minor earthquakes like the one in Batu Niah on Monday with the construction of more dams in the Rejang river basin.
Mild tremors were felt in Batu Niah and Suai following a moderate earthquake in Batu Niah.
The Meteorological Services Department said the quake in the morning measured 3.2 on the Richter Scale.
University Malaysia Sabah Natural Disaster Research Unit head Dr Felix Tongkul said that dam development had long been associated with disturbances to the geological structure beyond the dam sites.
“The proposed construction of more dams in the Bintulu interior is of concern. We suspect the Batu Niah tremor could be linked to the Bakun dam where several fault lines pass.
“The pending impoundment of the dam will create an unnatural load in the area and further destabilise the weak zones,” he said.
Tongkul said that more seismic activities could be expected and the situation would be closely monitored.
Geological studies had been carried out prior to the construction of the 2,400MW hydro-electric dam, he added.
Leading seismologist Harsh K. Gupta, in a 2002 article on Reservoir-Induced Seismicity (RIS) published in Earth-Science Review noted that there are over 90 identified sites of earthquakes triggered by impoundment of reservoirs globally.
Following the tragic Sichuan quake in May 2008, scientists in China and the United States linked the incident to the weight of the Zipingpu dam on which impoundment began in 2004.
The International Commission on Large Dams recommends that RIS should be considered for reservoirs deeper than 100m. Bakun’s reservoir is 194m deep.
Gupta concluded that the depth and volume of a reservoir played a significant role in triggering earthquakes and that seismic activities could happen immediately after the filling of water begins or after a time lag.
The controversial RM7bil dam which displaced 15,000 indigenous people was scheduled for impoundment last November but this was deferred pending approval from authorities.
The Sarawak government has announced the construction of another 12 dams in the state and half of them will be located in the Rejang basin.
Work on the 900MW Murum dam on one of the Rejang’s tributaries began in 2008.
The other five are Belaga (260MW), Lanau (290MW), Baleh (1,400MW), Belepeh (110MW) and Mentjawa (300MW).
The RM3bil Murum dam located 470km inland from Miri will flood about 30,000ha of the Murum Valley and displace 2,800 inhabitants from eight settlements.
Some villagers are resisting relocation as they fear the same fate as those resettled in Sungai Asap as a result of the Bakun dam.
Source: The Star
Link: http://thestar.com.my/metro/story.asp?file=/2010/2/3/southneast/5578071&sec=southneast
Thursday, February 11, 2010
Siapa yang menerima kesan dari Empangan Baram
Sekurang-kurangnya 20,000 penduduk orang asal akan terancam dan terpaksa dipindah akibat pembinaan empangan Baram. Mereka ini terdiri daripada suku Orang Asal Kayan, Kenyah dan Penan di mana rumah-rumahpanjang dan kampung-kampung terletak di sepanjang tebingan sungai Baram atau dikenali sebagai Telang Usan. Kedudukan kampung-kampung mereka berada di kawasan bahagian hilir, hulu dan juga sekitar tapak projek empangan.
Kampung/Rumah Panjang yang tinggal di kawasan bahagian hilir empangan adalah seperti Long Laput, Sungai Dua, Sri Kenawan, Uma Bawang, Long Miri( Daleh Pelutan), Long Pilah, Long Nakan dan Long Kesseh. Manakala di hulu sungai dan yang berada dalam kawasan takungan empangan adalah Long Na’ah, Long Liam, Long Keluan, Long San, Long Selatong (kiri dan kanan), Long Apu, Long Julan Asal, Long Julan Pelutan, Long Anap, Long Palai, Long Je’eh, Long Moh, Long Sela’an dan Long Semiyang termasuk juga penduduk Sungai Akah iaitu Long Beku, Ba Abang, Long Tap dan Long Tebangan. Kampung-kampung yang dalam Sungai Silat adalah Long Selawan, Long Makabar dan beberapa kampung-kampung Penan lagi di Sungai Silat.
Empangan Baram akan menenggelamkan lebih kurang 38,900 hektar ( 389sq km) tanah dan hutan. Kawasan tersebut kebanyakkannya adalah Tanah Adat termasuk tanah temuda, kawasan bercucuk tanam, kebun, kampung, gereja, tanah perkuburan, hutan komuniti dan tapak-tapak peninggalan bersejarah. Mereka akan kehilangan rumah panjang mereka, kampung, harta benda, tanah dan hutan disebabkan kesan dari penenggelaman dan kemusnahan oleh empangan Baram.
Kawasan tadahan empangan Baram akan meliputi seluas 896,600 hektar (8,966sq.km). Di mana keseluruhan kawasan tersebut adalah kampung-kampung dan tanah adat yang diduduki oleh masyarakat Orang Asal seperti Kenyah, Kayan, Kelabit, Saben, Penan dan lain-lain.
Empangan Baram juga turut akan menenggelamkan sekolah-sekolah kerajaan, klinik-klinik kesihatan, lapangan terbang dan juga bangunan kemudahan awam lain. Termasuk juga kem-kem syarikat pembalakan yang bergiat aktif di kawasan tersebut. Jalan-jalan balak utama yang diguna oleh penduduk rumah panjang Kedaya Telang Usan juga akan ditengelami oleh takungan empangan Baram
Empangan Hidroelektirk Baram
Empangan Hidroelektrik Baram terletak di sepanjang sungai Baram iaitu 306 km dari muara sungai. Kedudukan tapak empangan Baram akan melintangi sungai Baram iaitu dari arah mudik kehulu di antara Sungai Patah dan Sungai Kahah di sebelah kiri dan Sungai Hit di sebelah kanan.
Ketinggian empangan Baram adalah 162m di atas tahap asas. Struktur empangan yang melintangi sungai Baram adalah crest sepanjang 685m dan aras rabung adalah 180m di atas paras laut. Lakaran pembinaan akan dibuat seperti pengelek padat konkrit gravity empangan (roller-compacted concrete (RCC) gravity dam). Berdasarkan keadaan topografi (tanah) kawasan projek, sebuah saddle dam dengan ketinggian empangan 70m akan dibina kira-kira 5km dari kawasan selatan pembinaan projek.
Ciri-ciri Projek Empangan Baram
Empangan Utama
Jenis = RCC
Puncak Empangan = 180m a.s.1.
Ketinggian empangan = 162m
Panjang Crest Empangan = 685m
Pelana Empangan (Saddle dam)
Jenis = Rockfill
Puncak Empangan = 180m a.s.1.
Ketinggian Empangan = 70m
Panjang Empangan = 1,290m
Takungan Empangan
Tahap air biasa = 178m a.s.1
Tahap minimum air = 177m a.s.1.
Jumlah isipadu simpanan = 13,2 x 10 rn
Keluasan takungan = 389sq km (38,900 hektar)
Logi kuasa (power plant)
Kapasiti terpasang = 1,000 MW
Jenis turbin = Francis-vertical axis
Bilangan unit = 4
Keluasan kawasan tadahan = 8,966 sq km (896,600 hektar)
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