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.