Press Metal expands upstream with alumina refinery JV in Kalimantan
KUCHING (Sept 19): Press Metal Aluminium Holdings Berhad has entered into a shareholders’ agreement and share subscription agreement with PT Alakasa Alumina Refineri (AAR), PT Dinamika Sejahtera Mandiri (DSM) and PT Kalimantan Alumina Nusantara (KAN). This is to set up a strategic joint venture where KAN will establish and operate an integrated alumina refinery plant, power plant, jetty and supporting infrastructure in Sanggau, West Kalimantan, Indonesia. The refinery is expected to have an annual production capacity of 1 to 1.2 million metric tonnes, with a potential expansion to double this output. The total cost for Phase 1 is US$750 million, or about RM3.238 billion. Press Metal will subscribe for 80 per cent equity interest in KAN for a total subscription price of RM1.036 billion, executed in seven tranches over the next year, and funded through the Group’s internally generated funds. AAR and DSM shall hold 19.77 and 0.23 per cent, respectively. Group chief executive officer Tan Sri Paul Koon said the project represents a unique opportunity to drive sustainable long-term growth. “By partnering with AAR and DSM through this joint venture, we are not only expanding our upstream business operations but also unlocking synergies that will enhance the overall value of the Press Metal group. “This venture aligns with our strategy to reinforce and continuously strengthen our leading position as the largest smelter in Southeast Asia and boost our competitive edge across the aluminium value chain. “It is an effective approach towards expanding our upstream presence while ensuring higher self-sufficiency and a stable supply of our alumina needs, which are critical to our core smelting operations. “This will also reduce our reliance on third-party suppliers and traders, ensuring greater operational resiliency and efficiency. “With a long-term offtake agreement expected to commence once the refinery is operational, we anticipate cost savings that will further optimise our overall operations”, he said.
Solar on track for another record year, says report
PARIS (Sept 19): The solar industry is due to grow by nearly a third in 2024, beating forecasts as it adds 593 gigawatts of additional capacity, the majority of them in China, according to a report released on Thursday by the Ember think tank. “This is a 29 per cent increase compared to the previous year, maintaining strong growth following an estimated 87 per cent surge in 2023,” the report said. “Yet again, solar power is growing faster than people expected, as it establishes itself as the cheapest source of electricity globally,” said Euan Graham, electricity data analyst at Ember. Illustrating the lightning speed at which solar is growing, Ember projections show that new solar capacity added in 2024 alone will be more than the 540 GW of additional coal power added around the world since 2010. China remains the world leader in the sector and is expected to add 334 GW, or 56 per cent of the world total in 2024. It is followed by the United States, India, Germany, and Brazil, with the top five countries accounting for 75 per cent of the new solar capacity in 2024, the report said. Grid capacity and battery storage were key to maintaining growth in the sector, the report said. “As solar becomes more affordable and accessible, ensuring sufficient grid capacity and developing battery storage is crucial for handling power distribution and supporting solar outside of peak sunlight hours,” it said. “By addressing these challenges and sustaining growth, solar power could continue to exceed expectations for the remainder of the decade.” — AFP
