Mubadala to invest in Malaysia’s $7bn smelter

The project will create more than 10,000 jobs during construction and another 2,000 specialist jobs

Mubadala Development Company, a major investment arm of Abu Dhabi’s government, is planning to set up a joint $7 billion aluminum smelter in Malaysia under an agreement signed on Friday.
Mubadala Real Estate and Hospitality (MREH) and Mubadala Industry (MI) signed the deal with the government-owned 1Malaysia Development Berhad (1MDB), Mubadala said in a statement.
“MI has agreed to assess the viability of an investment of up to $7bn for the development of a major initiative in the aluminium sector based on hydro power in the Sarawak Corridor of Renewable Energy (Score),” it said.
“The two state-owned companies are starting preliminary assessment work on the project, which will create more than 10,000 jobs during construction and another 2,000 specialist jobs.”
The statement said the deal involves the exploration of the potential joint development of key strategic projects within the Kuala Lumpur International Financial District (KLIFD), the 34.4 hectare development in Kuala Lumpur that is being led by 1MDB.
The full scope of MREH’s participation in projects to be located within the KLIFD will be finalized in 2011 following completion by 1MDB of the KLIFD master plan.
It said KLIFD would provide a state-of-the-art home for world-class institutions operating in Malaysia’s financial system, including major international banking and financial institutions, financial services, investment houses and regulators.
Malaysian Prime Minister Mohd Najib Abdul Razak and Khaldoon Khalifa Al Mubarak, Chairman of the Executive Affairs Authority of the Government of Abu Dhabi and Chief Executive Officer and Managing Director of Mubadala Development Company were present at the signing in Kuala Lumpur.
1MDB is a strategic development company wholly owned by the Government of Malaysia. It serves as a catalyst for long-term sustainable economic development, advocating innovation and high performance towards strengthening national competitiveness.