NEWS & UPDATES

Sarawak, Kuching – January 20, 2012 – Sarawak Energy Berhad, the State’s electricity provider today signed a Power Purchase Agreement (PPA) with a Hong Kong based company, Asia Minerals Limited (AML).  Under the agreement, Sarawak Energy will provide 270 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 and His Excellency Mr Shigeru Nakamura, Ambassador of Japan to Malaysia.

Speaking about the agreement, Chief Executive Officer of Sarawak Energy Berhad, Mr Torstein Dale Sjøtveit said, “This latest milestone is another significant step forward of Sarawak Energy’s implementation of the State Government’s SCORE agenda.  By providing quality and affordable power, Sarawak Energy acts as catalyst for investments in the State of Sarawak and for SCORE. The establishment of companies involved in energy-intensive industries drives the creation of employment opportunities. Energy-intensive industries require substantial amount of power and through our hydropower plants, we have the capacity in meeting those demands. Hydropower being a clean source of energy has its benefit of helping to reduce carbon emission and provide secure long-term supply of electricity".

Founded in 1993, AML is focussed on all manganese related business from ores to alloys as well as other ferroalloys and coal/coke business. AML is operating manganese mines in Zambia and will also be commencing larger scale manganese mining operation in Kalahari province in South Africa, in the fourth quarter of 2012. It acquired its first ferroalloy smelting plant in 2005, in Inner-Mongolia in 2009 in Liaoning Province. Last year, AML has also invested in manganese alloy producer in India in 2011. Choosing Sarawak's SCORE as its fourth plant location, AML is investing at least RM790 million for the first and second phase in the manganese ferroalloy smelting industry. This is notably, the largest investment made by AML.  AML started earthworks on their plant in early 2011 and will initially start receiving power on April 15, 2012, which will facilitate the next phase of construction. The total construction time is estimated to be 18 months and the plant is expected to start ramping up operation in second quarter of 2013 and reach full production capacity in fourth quarter of 2014. The 350,000 tonnes per annum plant combined with its power needs is likely to create 650 new jobs by 2015. Mr Hirotaka Suzuki, Chairman and Managing Director of AML said, "The decision to invest in SCORE was driven by long term co-operation, commitment and attractive investment proposal packages from Sarawak State and institutions such as Sarawak Energy, Bintulu Development Authority and local service providers".

Sarawak Energy continues to power SCORE on its journey to becoming a major production investment hub in the region.  Since April 2011, Sarawak Energy has committed to supplying about 1,600 MW of additional energy to SCORE customers.  The presence of players from the energy-intensive industry will create a ripple effect, which would bring about multiple opportunities and enhancements in the downstream business.