26/04/05 - THE Sarawak State Government is building a RM4.2 billionintegrated pulp and paper mill in Bintulu. It has incorporated a company,Tatau Pulp Manufacturer Sdn Bhd, to carry out the project expected topossibly start operating around 2008.The company received the Federal Government's approval to build thefactory late last year and the Sarawak Government has gazetted andalienated 1,000 hectares to the Bintulu Development Authority whicheffectively owns Tatau Pulp."Our development is not a revival of the Borneo Pulp and Paper project.Although we're in the same town, the Tatau Pulp project is totallydifferent. We're 100 per cent owned by the Sarawak Government," directorLen Talif Salleh said.Speaking to Business Times at the Swedish Pulp and Paper Technologyseminar in Kuala Lumpur yesterday, Len said the company may considerraising funds by issuing Islamic bonds."We'll be leaving for the UK, Germany and Sweden to look at machineriesand the different financing options for the pulp and paper mill project,"he added.Len, who is also Sarawak Timber Industry Development Corp general manager,estimates that it would take three years to get the right financingarrangement and equip the factory with the relevant machineries to churnout 650,000 tonnes of writing and printing paper annually.He said work on the integrated pulp and paper mill project had alreadystarted with farmed forest of the acacia mangium species. "Every year, theGovernment allocates RM60 million to replant 20,000ha secondary forestwith acacia mangium," he said.In May 2003, the Sarawak Forestry Department handed over a 54,000ha sitefor the planting of acacia mangium to Grand Perfect Sdn Bhd in KakusDistrict, about 90km from Bintulu.Grand Perfect is a consortium of three major timber companies in Sarawak -KTS Timber Industries Bhd, Samling Strategic Corp Sdn Bhd and Ta AnnHolding Bhd.The RM180 million acacia mangium planting exercise is Malaysia's largestsingle species plantation to supply wood for a pulp and paper project on asustainable basis. "Tatau Pulp is planning to sign a pulp supply agreementwith the Sarawak Government in the last quarter of the year," Len said.

PM Declines Comment On Revival Of Rawang-Ipoh Rail Project

PUTRAJAYA, April 26 (Bernama) -- Prime Minister Datuk Seri Abdullah AhmadBadawi Tuesday declined comment on the status of the postponed electrifieddouble-tracking railway project between Rawang and Ipoh.

The matter has yet to be discussed by the Cabinet, said Abdullah, who wasasked to comment on reports that the project would be continued under theNinth Malaysia Plan.

In December 2003, Abdullah announced that the Ipoh-Padang Besar andSeremban-Johor Baharu double-tracking project would be deferred.

He said this to reporters after a briefing on Islam Hadhari for MenterisBesar, Chief Ministers and state exco members in charge of religiousmatters.

-- BERNAMA