Grange to build iron ore pellet plant in Malaysia

Grange to build iron ore pellet plant in Malaysia

Australian mining company Grange Resources Ltd. signed an agreement with major Malaysian construction company Road Builder Holdings to develop a $330 million iron ore pellet plant at Kemaman port in Terengganu, Malaysia. The plant will become operational in 2009. According to the agreement, Road Builder will sell 150 acres of industrial land in the Teluk Kalung Industrial Estate to Grange Resources Ltd. Grange will then establish the plant on the newly acquired land. Grange Resources will import iron ore from Australia and process them into pellets at the plant. The output will be sold to local steelmakers as well as China, Japan, South Korea, Middle East and Indonesia. As the owner of the port, Road Builder Holdings hopes to handle 12 million metric tons of iron ore pellets annually once the plant is completed. Road Builder Holdings owns 850 acres in the industrial land, and is considering selling the rest of the land to other companies with similar objectives.