Mining and metals group Rio Tinto is to build a US$2bn aluminium smelter on Borneo Island, following a push by the Malaysian Government to invest in the mineral-rich area.
Tinto's move comes in conjunction with the government's launch of a 30-year development project for the state of Sarawak to build power facilities using hydroelectricity.
Last year, Rio Tinto and its local partner, Malaysian builder Cahya Mata Sarawak Bhd, proposed to build the smelter with initial annual production capacity of 550,000t.
The two companies must now complete a feasibility study on the project.
The Malaysian Government has also unveiled plans for a second, smaller smelter for Sarawak, costing around US$774m, writes Reuters.
By Ozge Ibrahim
