Perak looking at investors to build two steel mills

Saturday May 28, 2011
By EDMUND NGO
edmundngo@thestar.com.my


THE Perak government is trying to woo investors to build two steel mills in the state with a projected investment amounting to RM18bil.

State executive councillor Datuk Hamidah Osman said the products from the steel mills would be exported.

He said under the proposal, three foreign companies from South Korea, Japan and India have shown interest in the project.

The steel mills would require 125ha of land each to be built.

”We are also looking for key investors to tap into the iron ore mining potential in Perak,” she said.

Hamidah said if successful, the projects would generate downstream activities and boost the local automobile and construction industry sectors.

She said the proposal came about after Brazilian mining giant Vale International SA was granted approval to develop an iron-ore complex and its own jetty in Teluk Rubiah, Lumut, worth over RM9bil for its iron-ore transhipment project.

Hamidah said Vale has drawn up its engineering plans and construction should start in July or August.

“Vale mines the iron ores and the supply can be directed to the steels mills,” she said after receiving a courtesy visit from the Malaysia My Second Home (MM2H) Agents Association in Ipoh.

The association’s president Jeremy Yeong said some of the MM2H participants had expressed their interest in investing in the country.

He also said the state government should hold a two-day cultural carnival in conjunction with Visit Perak Year in 2012 to attract foreigners to make Perak their second home under the MM2H programme.