NEWS & UPDATES
Sarawak Energy Inks Power Purchase Agreement with OM Materials (Sarawak) Sdn Bhd to provide 500 megawatts of power
Kuching, Sarawak, MALAYSIA, 02 February 2012 - Sarawak Energy Berhad, the State’s electricity provider today signed a Power Purchase Agreement ("PPA") with a Singapore based company, OM Materials (Sarawak) Sdn Bhd part of the OM Holdings Group ("OMH"). OM Materials (Sarawak) Sdn Bhd is a joint venture, 80% owned by OM Holdings and 20% owned by Cahya Mata Sarawak Sdn Bhd ("CMS"). Under the agreement, Sarawak Energy will provide 500 megawatts (MW) of power for a contract period of 20 years. The signing ceremony was witnessed by the Chief Minister of Sarawak, Pehin Sri Haji Abdul Taib Mahmud, High Commissioner of Australia, His Excellency Miles Kupa and High Commissioner of Singapore, His Excellency Ong Keng Yong.
It was just before the Chinese New Year holidays that Sarawak Energy signed a Power Purchase Agreement with another company. Speaking about the agreement, Chief Executive Officer of Sarawak Energy Berhad, Mr Torstein Dale Sjøtveit said, “Just within five weeks of us entering into 2012, we are already inking our second PPA. This shows commitment from our partners, which is a significant achievement for Sarawak Energy in supporting and driving the SCORE agenda. Being a catalyst for investments in the State of Sarawak and for SCORE, Sarawak Energy provides quality and affordable power".
OMH was established in 1994 and has since then developed to become a fully integrated producer and trader of carbonsteel raw materials. The Group operates mining operations in Australia and a ferro alloy production facility in China. In 2001, through its wholly owned subsidiary, OMH controls 100% of the Bootu Creek Manganese Mine in the Northern Territory, Australia. In 2005, OMH commissioned its ferro alloy production, warehouse and distribution facility in the port city of Qinzhou, south west China, and it has progressively grown its presence in the Chinese market. OMH is also present in South Africa and its interest in the world class Tshipi Borwa manganese project will further assist OMH to be part of the world's largest fully integrated manganese producers.
Choosing Sarawak's SCORE as its ferro alloy smelting location, the investment from OMH is USD$500M and this is notably, the largest investment made by OMH. Earthwork started in early 2011 and it will start receiving initial power of 30MW after 31st July 2013. The total construction time is about three years and the plant is expected to be fully operational by 30th June 2015. It is expected to produce 300,000 tonnes per annum of manganese alloy and 300,000 tonnes per annum of ferro silicon. With this size of facility and production capacity, it is likely to create between 2,500 to 3,000 new jobs.
Mr Low Ngee Tong, Executive Chairman of OMH said, "The decision to invest in SCORE was driven by a unique set of factors surrounding Sarawak. A business friendly government is the basis for any strategic investment of this size. Long term reliable attractive power supply coupled with various tax and duty related incentives are the compelling factors. It’s geographical location made it a natural fit in terms of raw material supply from our mine in the Northern Territory of Australia, as well as sales from our Sarawak smelter into the resource driven Asian steel markets. The logic of the project is confirmed as we progress on various off-take and investment agreements with our strategic partners. I am confident that this project will positively transform OMH, the silicon manganese and ferro silicon industries and also Sarawak."