KUCHING: State conglomerate Cahya Mata Sarawak Bhd (CMS) has announced that its wholly-owned subsidiary Samalaju Industries Sdn Bhd (SISB) entered into a shareholders’ agreement (SA) with Malaysian Phosphate Venture Sdn Bhd (MPVSB), Malaysian Phosphate Additives (Sarawak) |Sdn Bhd (MPASSB) and Arif Enigma Sdn Bhd (AESB) for the development of a phosphate plant in Samalaju.
A joint-venture under the agreement, MPASSB will be owned as to 40% each by SISB and MPVSB, and 20% by AESB.
This facility will be the country’s and South East Asia’s first integrated phosphate complex, which will be located in Samalaju Industrial Park (SIP) — an area within Sarawak Corridor of Renewable Energy (SCORE).
Concurrent with the signing of the SA, MPASSB also finalised the power purchase agreement (PPA) term sheet with Syarikat Sesco Bhd for the supply of the required 150MW of power.
The parties are expected to sign the PPA term sheet some time this month to be followed up by a PPA between the parties, expected to be signed in the first quarter.
MPASSB also entered into a sale and purchase agreement (SPA) with SISB for MPASSB to obtain a 350-acre land in SIP from SISB to site the phosphate complex, which is expected to have annual production capacity of 500,000 metric tonnes of phosphate and related products.
Construction is scheduled in this year’s first quarter and full commissioning by the second quarter of 2018.
It will employ some 1,000 skilled workers and staff and involve an estimated capital expenditure of RM1.04bil, to be funded via a mixture of shareholders’ equity and long-term bank-funded debt, which is currently being arranged.