NewsPrimary ALPress Metal to buy 480MW electricity for its new aluminium smelting plant
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Press Metal to buy 480MW electricity for its new aluminium smelting plant

Edited by : AL CIRCLE
2 min read
Press Metal Bhd's (PMB) new aluminium smelting plant in Samalaju Industrial Park, Bintulu is the first factory to tap into electricity from the Bakun dam.

Sarawak Energy Bhd (SEB) chief executive officer Torstein Dale Sjotveit said the 275kV transmission line linking SEB Samalaju's power station and PMB's new plant was “energised” last Thursday.

“PMB is taking power this month,” he said when asked after SEB's wholly-owned subsidiary, Syarikat Sesco Bhd, signed its first collective agreement with its union here yesterday.

Under the three-year agreement, some 2,700 union staff will get an average salary increase of at least 5%.

Sjotveit said PMB was purchasing 480MW to power its new smelter which was on track to start commercial operation by June this year.

The new smelter has a production capacity of 240,000 tonnes per annum, which is double the capacity of its aluminium smelter in Balingian, Mukah Division.

The Balingian plant is currently running at the full capacity of 120,000 tonnes per annum.

Both plants are located in the Sarawak Corridor of Renewable Energy.

Sjotveit said three new transmission lines would be built to connect power to Tokuyama Corp's polycrystalline silicon plant (phase II), Asia Minerals Ltd's manganese and ferro alloy smelting plant and OM Material (Sarawak ) Sdn Bhd's manganese and ferro alloy smelting plant in Samalaju.

He said one of the transmission lines was 132kV while the others are 275kV.

SEB has called for bidders to build the Samalaju-Tokuyama 275kV transmission line (phase II).

The tender will close on April 18.

Tokuyama's first plant is expected to be operational in September next year and the second in the second quarter of 2014.

Asia Minerals, which has signed for a long-term supply of 270MW from SEB, expects its plant to commence commercial production in June or July 2013.

According to OM Materials Sarawak chairman Low Ngee Tong, its RM1.5bil smelting plant is scheduled to start power consumption and production testing from the second half of 2013.

The 80:20 joint venture between OM Holdings group and Cahya Mata Sarawak Bhd has a long-term supply agreement of 500MW with SEB.

“A 132kV transmission line costs between RM3mil and RM5mil to build while a 275kV transmission line costs between RM13mil and RM20mil.

“The plants' owners will pay for the cost of the transmission lines,” said Sjotveit.

Four of Bakun dam's eight 300MW turbines are now producing power.

The other four turbines are under installation.

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