China Eximbank pledges $1.6 billion loan for Sarawak Aluminum Smelter Construction Project
Constant 2017 USD
Not recommended for aggregates
This project is not recommended for use in creating aggregated sums. See the documentation for more information about this criteria.
Funding agency [Type]
Export-Import Bank of China [State-owned Policy Bank]
Industry, mining, construction (Code: 320)
In May 2005, Cahya Mata Sarawak Berhad (CMS) signed an MOU with Shandong Luneng Group Co Ltd and Sinohydro Corporation, to undertake a feasibility study to set-up, own and operate an aluminum smelter plant in Sarawak. Following the feasibility study, CMS and its consortium partners, which included the State Grid Corporation of China, subsequently submitted a proposal to the Government of Malaysia to set-up and operate the aluminum smelter at a cost of between RM 9 billion and RM 11 billion. Then, in December 2005, China Eximbank agreed in principle to provide a 10-year soft loan to finance the cost of building the aluminum smelter proposed by the Chinese-Malaysian consortium. The smelter was to be constructed by Shandong Luneng Group Co Ltd. The aluminum smelter was expected to cost $3.2 billion. The Chinese companies in the consortium were expected take up a 50% ownership stake in the project, with the remaining equity to be held by the Malaysian companies in the consortium. The China Eximbank loan was expected to carry a 10-year maturity and an interest rate of 2-3%. However, AidData has not identified any evidence that a loan agreement with China Eximbank was ever finalized.
1: This project is also known as the Shandong Luneng Aluminum Smelter Plant Project. 2: On February 9, 2010, Aluminum Corporation of China Limited (CHALCO) entered into a framework agreement with GIIG Holding Sdn Bhd ('GIIG') to develop, own and operate a primary aluminum plant in Samalaju Industrial Part in Bintulu, Sarawak with an annual capacity of approximately 330,000 tons. Smelter Asia Sdn Bhd, a wholly-owned subsidiary of GIIG was to be reorganized as a joint venture to oversee the development and operation of the primary aluminum plant project. The total investment of this project was estimated to be $1.0 billion, and CHALCO planned to contribute between $350 million to $400 million for 35% to 40% of the equity interest in the joint venture. However, it is unclear if this was the reason that the Shandong Luneng Aluminum Smelter Plant Project did not move forward.”
Number of official sources
Number of unofficial sources
Receiving agencies [Type]
Government of Malaysia [Government Agency]
Implementing agencies [Type]
Cahya Mata Sarawak Bhd. [Private Sector]; Press Metal Sdn. Bhd. [Private Sector]; Shandong Luneng Group Co. Ltd. [Private Sector]