Rio to consider Sarawak smelter

ANGLO-Australian mining giant Rio Tinto and Malaysian firm Cahaya Mata Sarawak reportedly are to do a joint study for what could become one of the world's biggest aluminium smelters. Under an agreement expected to be signed tomorrow, Rio and Cahaya would carry out the study for a $A2.33 billion smelter in Similajau, Sarawak. It would begin production in 2010, an industry source familiar with the plan said. Power from the controversial Bakun dam in Sarawak was expected to supply the bulk of energy needs. The dam, which involves flooding an area the size of Singapore, has attracted fierce criticism because of its harmful impact on the environment and the fact that 10,000 people already have had to evacuate the project site. As part of the Rio Tinto group, Rio Tinto Aluminium has mining, refining and smelting assets mainly situated in Australia and New Zealand.