Conglomerate Cahya Mata Sarawak Bhd (CMS) and global Anglo-Australian miner Rio Tinto Tuesday (August 7) signed an agreement for the proposed development of an aluminium smelter in Sarawak. [Bernama]

Malaysia doesn’t have rich resource of bauxite (raw mineral for aluminium), we don’t have a large market for aluminium, and our labor cost is no longer the cheapest these days… the only reason for Rio Tinto to invest in Sarawak is because of its demand for high power supply, which the controversial Bakun Dam will be able to provide.

This raise my questions… why do we build the Bakun Dam at the first place? Isn’t Bakun built to supply sufficient energy for Malaysia for the next few decades?

It’s reported that about 900MW will be used by the smelter, out of the 2,400MW capacity Bakun is going to produce. So, Malaysia is spending billions of dollars, and bearing environmental damage to build the damn dam that should benefit the citizens for years… but is now mostly going to benefit an Australia company and a local conglomerate instead?

Not forget to mention is that the Chief Minister of Sarawak, Taib Mahmud’s family is a large shareholder in CMS… conflict of interest never applied in Malaysia ain’t so?

Besides, aluminium (and other metals) smelters are known for its hazardous environmental effect. Modern days smelters should be able to minimize the environmental impact; question is if the company is willing to spend loads of money into minimizing the damage.

Even if the company is willing to invest on environmental safety measures, there are still risks involved when handling the toxic waste. The easiest way to dispose the waste is by using landfill; and if any leakage happens during the handling, or after being buried… it could spell environmental disaster.

On the positive note… it is going to create working opportunities, some 4000+ directly or indirectly; and it is going to increase Malaysia’s GDP.

The main question is however… who are the real beneficial of the deal? The largest beneficiaries are probably Rio Tinto, CMS, Muhamad Taib and the company that is going to run Bakun dam.

Besides the 4000+ workers, I don’t see other common citizens benefiting much from it… the only parts we play is the taxpayers’ money that are spent on Bakun, and the environmental risk for Sarawakian.


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4 Responses to “Aluminium smelter plant in Sarawak?”

  1. The dilemma of Malaysian pig farmers | Malaysia Buzz with YeinJee on September 6th, 2007 at 1:16am

    [...] and No. A nuclear plant can be hazardous; the recently announced Sarawak smelter plant can cause horrific environmental issues as well… the key to this matter is ‘proper [...]

  2. agatha anggi on July 9th, 2008 at 12:57pm

    i am not happy with rio tinto and cms building the aluminium plant any place in sarawak. but then, who are willing to face these people? the dayak’s right are being stomped!

  3. Yein Jee on July 9th, 2008 at 3:25pm

    Agatha… start from your local leaders, politicians, newspapers. You need to find people who share the same thoughts and grouped them together to fight against this if you are serious about it.

  4. sl on November 15th, 2008 at 9:45pm

    u guys still like our states still behind a lot that kl ?
    thinking twice !!!


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