KUCHING, July 8 (Bernama) -- A crude palm oil refinery complex costingRM50 million will be built at the Kidurong Industrial Area in Bintulu toenhance Sarawak's palm oil industry, said Austral Enterprises Bhd'smanaging director, Dr Radzuan Abdul Rahman.The refinery, which is expected to be in operation in 2004, would beundertaken by a joint venture company, Austral Edible Oil, to be jointlyowned by Austral and Lembaga Amanah Kebajikan Masjid Negeri Sarawak(LAKMNS).

This will be Austral's second refinery in Sarawak. Its first was built inMiri.

The second refinery complex would be strategically sited on aneight-hectare site near Bintulu Port where most of the oil palm estatesare located along the Bintulu-Miri Road, Dr Radzuan said at the signing ofa memorandum of understanding between Austral and LAKMNS here. It waswitnessed by Prime Minister Datuk Seri Dr Mahathir Mohathir Mohamad,Sarawak Chief Minister and LAKMNS chairman Tan Sri Abdul Taib Mahmud andAustral chairman Datuk Mohd Zuki Kamaluddin.

Austral, a subsidiary of Permodalan Nasional Berhad (PNB), was representedby Dr Radzuan while LAKMNS, a welfare trust, was represented by SarawakState Secretary and LAKMNS honorary secretary Datuk Amar Abdul AzizHussain.

Dr Radzuan said 60 percent of the CPO to be processed at the new refinerywould come from 14 estates owned by Austral. The rest will come fromgovernment-owned and other privately-owned estates.

He said the refinery would initially have a daily processing capacity of1,000 tonnes of CPO.

Dr Radzuan said Austral was the first company to have responded to theSarawak state government's call to pioneer the establishment of estates inforested areas in 1980s.

To date, he said Austral had spent almost RM0.5 billion to develop 14estates and three palm oil mills.

Austral provides jobs to 2,700 people in Sarawak and its estates cover36,542 ha or 10 percent of the oil palm hectarage in the state. -- BERNAMA

(The informations and opinions expressed in this article represent theviews of the author only. They should not be seen as necessarilyreflecting the views of Palm News)