The deal is to power its US$500 million (over RM1.5 billion) investment in a ferro alloy smelting plant in the Sarawak Corridor of Renewable Energy (SCORE) — OMH’s largest investment to date.
Earthworks for the plant started early last year and the plant is expected to be fully operational by June 30, 2015.
It will start receiving an initial 30MW of power after July 31 next year.
The plant is expected to produce 300,000 tonnes of manganese alloy and 300,000 tonnes of ferro silicon annually.
It is likely to create between 2,500 and 3,000 new jobs.
Now if we didn’t have SCORE and the clean electricity generated hydroelectric dams such as Bakun, international companies the likes of OMH would not even look at setting up their businesses in Sarawak.
The billions of ringgit they are pouring into the State is what will secure real transformation Sarawakians and open up new job opportunities.
A binding term sheet is already in place for OMH’s plant in Samalaju to provide JFE Shoji Trade Corporation of Japan with up to 100,000 tonnes per annum of Ferro Silicon.
Yup that’s right – even before construction has begun on the plant! That’s how confident these global companies are in SCORE!
In case you didn’t know, OMH is a Singapore-based company with global operations. In 2008, it was selected as a constituent of the S&P/ASX 200, a stock index comprised of 200 select ASX listed companies.
JFE Shoji Trade Corporation, established in 1954, has ¥14.5 billion (RM575.2 million) in capital. It has 30 overseas offices in 15 countries in Asia, Europe, Oceania and the Americas.
The story from Bernama:
SEB Inks PPA With OM Holdings
KUCHING, Feb 2 (Bernama) — Sarawak Energy Bhd (SEB), the state electricity provider, today signed a Power Purchase Agreement (PPA) with Singapore-based OM Materials (Sarawak) Sdn Bhd.
Under the agreement, SEB will provide 500 megawatts (MW) of power for a contract period of 20 years to OM Materials (Sarawak) Sdn Bhd.
OM Materials (Sarawak) Sdn Bhd is a joint venture company and part of the OM Holding Group (OMH). It is 80 per cent owned by OM Holdings and 20 per cent by Cahaya Mata Sarawak Sdn Bhd (CMS).
The signing ceremony was witnessed by Sarawak Chief Minister Tan Sri Abdul Taib Mahmud, Australia’s High Commissioner to Malaysia, Miles Kupa and the Singapore High Commissioner, Ong Keng Yong.
The Chief Executive Officer of SEB, Torstein Dala Sjotveit in his speech said this second PPA showed the commitment of the company’s partners.
“This is a significant achievement of SEB in supporting and driving the Sarawak Corridor of Renewal Energy (SCORE) agenda.
“Being a catalyst for investments in Sarawak and for SCORE, SEB provides quality and affordable power,” he added.
OMH had previously made a US$500 million investment in a ferro alloy smelting plant in the SCORE. This is notably, the largest investment made by OMH.
Earthworks for the plant started in early 2011 and the plant is expected to be fully operational by June 30, 2015.It will start receiving an initial power of 30MW after July 31, 2013.
It is expected to produce 300,000 tonnes of manganese alloy and 300,000 tonnes of ferro silicon annually and is likely to create between 2,500-3,000 new jobs.
Meanwhile, Taib in his speech said most of the infrastructure development in SCORE will be ready by year-end with Sarawak set to venture into more heavy industries in the future.
“We are new in heavy industries. But this is no reason for Sarawak to not venture into it,” he added.