Signing Ceremony between SEB and MPAS

Power Purchase Agreement signed to power South East Asia’s Largest Integrated Food, Feed and Fertiliser Phosphate Plant

Kuching (Sarawak), Wednesday, 3 February 2016 – Malaysian Phosphate Additives (Sarawak) Sdn Bhd (MPAS) inked a power purchase agreement (PPA) with Sarawak Energy through its wholly-owned subsidiary Syarikat SESCO Berhad today to provide electricity to the largest integrated phosphate additives plant (Plant) in South East Asia.

MPAS is a 100% Malaysian joint venture between Samalaju Industries Sdn Bhd (SISB), MPA Phosphate Ventures Sdn Bhd (MPVSB) and Arif Enigma Sdn Bhd (AESB).SISB is a wholly owned subsidiary of main board listed Cahya Mata Sarawak Bhd, a leading infrastructure and manufacturing group in Sarawak. MPVSB is a wholly owned subsidiary of Malaysian Phosphate Additives Sdn Bhd, a manufacturer of phosphate additives in Lumut, Perak and whose shareholders are its founding members and the Malaysian Technology Development Corporation, a wholly owned subsidiary of Khazanah Nasional Bhd. AESB is an associate of Tradewinds plantations group of companies.

The Plant will be located in Sarawak’s Samalaju Industrial Park (SIP), the growth node in Sarawak Corridor of Renewable Energy (SCORE), focussing on heavy and energy intensive industries. It will have an annual production capacity of approximately 500,000mt of food, feed and fertiliser phosphate additives, 100,000mt of ammonia and 900,000mt of coke. Using rock phosphate as its major raw material, its range of phosphate additive products will serve as the feedstock in the production of various foods and beverages, in Halal animal feed by replacing the use of animal bones and in the production of NPK fertiliser.

In delivering his address during the signing ceremony, Chairman of MPAS, Y Bhg Datuk Syed Ahmad Alwee Alsree said, “For a substantial investment of RM1.9 billion on our part, we are projecting a compelling GNI of RM 11.8 billion from 2017 to 2030 to the Malaysian economy and many other benefits. These range from strengthening Malaysia’s food security and competitiveness through reduced imports; to providing 1,200 direct employment opportunities for Sarawakians in particular; to attracting potential downstream manufacturers, including SMEs to set up plants; to adding 5.5 million mt of cargo throughput into the new Samalaju port representing more than 50% of its throughput; and to diversifying SIP’s industrial base into a new non-metals sector.

According to Mr Lim Lee Wan, Managing Director of MPAS: “This Plant is just the first phase of a long term plan for our 350 acre land parcel. With its use of proven technology in its manufacturing processes, we are confident that we will see not just downstream manufacturers setting up near us but even more significantly that our Plant will serve as the catalyst for Samalaju Industrial Park to evolve into one of the region’s major phosphate chemical hub. We are grateful for the strong support from Sarawak Energy, the Sarawak and Malaysian governments and their agencies to bring our project to fruition.”

Construction of the Plant will commence following the formal signing of the EPC construction contract and financial close, both of which are at an advanced stage with production ramp u scheduled to commence in the first half of 2018.