Rio Tinto, Others In Talks On Malaysian Smelter

Rio Tinto and Cahya Mata Sarawak Bhd. confirmed they have been in discussions with other parties over a planned aluminum smelter in Malaysia. However, the miner and the Malaysian conglomerate declined to comment on a media report that they will sign a heads of agreement next week for the construction of a $2 billion smelter in Sarawak. The Malaysian Reserve reported that construction on the project would start in 2008 and be completed in 2010, citing unnamed sources. “Rio Tinto has been in discussions with both the Malaysian federal government and the state government in relation to building a new smelter in Sarawak and we have been having discussions with other parties,” a spokesman for the Rio Tinto said. The spokesman declined to comment on the report of an impending heads of agreement with Cahya Mata Sarawak. A Cahya Mata spokeswoman said discussions were ongoing. A green light for the development would further underline the Australian mining giant’s confidence in the future of the aluminum market, after it launched a $38.1 billion bid for Alcan and committed to a $1.8 billion expansion of its Yarwun alumina refinery in Australia.