Sarawak Energy’s PPA Signing with Sakura Ferroalloys S/B Exemplifies Robust Energy Demand in Sarawak

Kuching, Sarawak, 11 October 2013 : Sarawak Energy, through its wholly owned subsidiary company Syarikat SESCO Berhad (SESCO), today signed a Power Purchase Agreement (PPA) with Sakura Ferroalloys S/B for the supply of power to their proposed 80 MW manganese smelter in Samalaju Industrial Park in Bintulu, Sarawak. The PPA signing with Sakura which is the sixth PPA signed within a period of 5 years, signifies the growing investors’ confidence in energy-intensive industry of the state. The investments by the signed PPA customers amount to RM10.39 billion and Sarawak Energy is investing about RM10 billion in SCORE consisting of 500 KV backbone, Murum HEP and Balingian Coal-fired Plant.

The manganese smelter, which is expected to come online on October 2015, is a joint venture by three international companies – Assmang Limited, Sumitomo Corporation and China Steel with Assmang Limited as the majority shareholder. The tripartite venture is expected to invest a total of about USD $328 million and production estimation of 100,000 tonnes of High Carbon Ferro-Manganese and 60,000 tonnes of Silicon Manganese per annum.

In witnessing the signing of the PPA, Chief Minister of Sarawak, Pehin Sri Haji Abdul Taib Mahmud said: “We are extremely pleased with the signing today. For every signing, it is imperative that it fulfills two commitments – economic and human development.   Apart from bringing in abundance of investment to our state, the signing will see the employment of an estimated 1,500 direct and indirect job opportunities for the locals to look forward to. This will be an essential part of a bigger development through Sarawak Corridor of Renewable Energy (SCORE), to grow Sarawak to what it envisions to be – a high income, self-sufficient state”

At the ceremony, Chief Executive Officer of Sarawak Energy Berhad, Datuk Torstein Dale Sjotveit said: “The consistent investment and interest showcased by our investors show that there is a strong demand of energy in Sarawak. Our growth machine, SCORE, and resources are in place. Now we just need to fully maximize our potential as an international energy provider and propel our state towards achieving a high income status by 2020.”


Speaking for Sakura was its Director, Mr Jan Christiaan Steenkamp.  According to Mr Steenkamp, “Sakura’s investment is the start of a long-term partnership with Malaysia, more specifically with the people of Sarawak.  The company is pleased that the investment will contribute to the economic development of the state.”

Signing for Sarawak Energy were its Chief Executive Officer, Datuk Torstein Dale Sjotveit and its General Manager for Planning and Strategy, Alvin Lim.  While for Sakura, the four signatories were Jan Christiaan Steenkamp and Bastiaan Hendrikus Van Aswegen, the Directors for Sakura Ferroalloys Sdn Bhd in the presence  of  Shinichi Uryu, the General Manager, Iron & Steel Making, Raw Material Department, Sumitomo Corporation and Mou-Ping Wang, Vice President, Corporate Planning Division, China Steel Corporation.

Also present to witness the signing, were state ministers assistant ministers, heads of government departments and management and board members of both Sarawak Energy and Sakura Ferroalloys.

Under the SCORE initiative, the government is implementing a comprehensive plan to develop the economy by harnessing the State’s competitive advantage in the generation of bulk renewable energy to attract investment and employment in energy intensive industries. This will result directly in the people of Sarawak enjoying higher incomes and standard of living.

To support the State’s SCORE agenda, Sarawak Energy is committed towards harnessing the abundant hydroelectricity resources in a sustainable manner, compliant with Sarawak and Malaysian law and guided by international best practices. Sarawak Energy’s projections indicate that by the middle of the next decade, residential, retail and commercial customers in Sarawak will require 2,000 MW while SCORE customers will consume at least 6,000 MW. The State’s GDP is expected to expand 5-fold by 2030, with approximately 1.6million jobs to be created when SCORE is fully operational.