Signed Joint Venture Agreement and Power Purchase Agreement Term Sheet for Malaysian Phosphate Additives (Sarawak) Sdn Bhd to build and operate an Integrated Phosphate Plant in Samalaju

There is growing demand for phosphorus, an essential base nutrient widely used in food, feed and fertiliser products. CMS had joined forces to build an integrated phosphate complex at Samalaju at a projected cost of RM1.04 billion. On the last day of 2013, Samalaju Industries Sdn Bhd entered a shareholders’ agreement with Malaysian Phosphate Venture Sdn Bhd (MPV) and Arif Enigma Sdn Bhd (AESB) to form a joint venture company called Malaysian Phosphate Additives (Sarawak) Sdn Bhd (MPAS). Samalaju Industries Sdn Bhd and MPV will each own 40% of MPAS while AESB will own 20%. On 8 January 2014, MPAS signed a Power Purchase Agreement (PPA) with Sarawak Energy Berhad for the supply of 150 MW of electricity

The complex is the first of its kind in Malaysia and indeed Southeast Asia, and is the first non-metal or alloy-based plant in Samalaju Industrial Park (SIP), taking SCORE and CMS into a dynamic new industrial sector that offers long-term sustainable demand growth. The complex will have an annual production capacity of 500,000 tonnes of food and feed phosphate and related products such as fertiliser phosphate derivatives. It will be built on a 142- hectare site near the Samalaju deep water port, which is under construction. Construction started in the first quarter of 2014 and the complex is expected to be operational by 2017, and fully commissioned in 2018. Nearly 1,000 skilled workers and staff will be employed.