Rio Tinto eyes smelter in Malaysia (another one!)

Rio Tinto may team up with Cahya Mata Sarawak Bhd, a Malaysian construction and financial services group, to build a $US2 bn aluminium smelter in eastern Sarawak state, on the island of Borneo. The company is studying the tax incentives that could justify the capital investment. The smelter would use most of the power from the nearby $US1.2 bn Bakun hydroelectric 2400-megawatt dam project, under construction in the Borneo jungle. This project is controversial because of its potential environmental impact and the potential impact on the region's native Penan people. Several other companies have expressed interest in building a smelter, including Chinese power producer Shandong Luneng Group, and Smelter Asia Sdn Bhd, which is owned by Malaysian businessman Syed Mokhtar Albukhary and Dubai-based businessman Mohamed Ali Alabbar. BHP Billiton was no longer interested in the project, the report said. (The Age - 04/24/05)