Sarawak the Smelting and Minerals Processing Hub for Asia Pacific

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1 Sarawak the Smelting and Minerals Processing Hub for Asia Pacific Nick Wright Vice President, Business Development 5 April 2017 Mines and Money Asia 2017, Hong Kong

2 Where is Sarawak?

3 What is Sarawak Energy? A fully integrated power utility and energy development company, wholly owned by the state of Sarawak Almost 4,600 employees serving a population of 2.6 million. Generates power through hydro, coal and gas Supplies almost 640,000 domestic, commercial and industrial (organic, bulk and export) customers through an extensive transmission and distribution network. Lowest tariffs

4 We are being Supported by Global Networks and Top Quality Advisors International Organisation Owners Engineers Legal Advisors Banking Strategic and Market Advisors 4

5 Generation Mix and Installed Capacity Predominantly renewable hydropower Balance of thermal to maintain diversity and security of supply Alternative energy entering the mix 14% 13% 12% 10% 14% 2% 0.04% 74% 21% 14% 0.2% 65% 5,306MW % 25% 0.5% 60% 7,870MW % 4,628MW 2016 Generation Type Hydro 820MW 2000 Coal Diesel Gas Alternative Energy 5

6 sen/kwh Lowest Tariffs in Malaysia & the Region Sarawak Sarawak PLN Indonesia Sabah Vietnam West Malaysia EGAT Thailand Singapore Meralco Philippines Source: Malaysia Energy Statistic 2016 except - Vietnam based on KPMG Report PLN Indonesia based on PLN Annual Report 2015

7 Hydroelectric Plants (HEPs) Batang Ai Murum Bakun 108 MW Installed Capacity Commissioned in MW Installed Capacity Commissioned in ,400MW Installed Capacity Commissioned in 2011

8 Baleh Hydrolectric Project Installed Capacity 1,285 MW Execution Period 8 9 years Date of Commission 2025 State Cabinet approved project commencement on 30 June 2016 Preliminary works have commenced Extension of distribution line from Kapit to Baleh costing RM100 million

9 tco2/mwh Grid Carbon Emission Intensity Carbon Intensity* decreased by 72% Bakun Power Intake 0.44 Murum Power Intake Year

10 Sarawak Hydropower Potential Hydropower potential in Sarawak was identified in 1962, followed up by various studies in 1980 s and 1990 s. There are more than 50 potential project sites, totalling 20,000 MW in capacity. To date, only 3 sites, 3,4323 MW are utilized (17%).

11 Thermal Power Plants Bintulu (Gas) 337 MW CC Installed Capacity Commercial Operations: 1999 (Unit 7 & 8) 2010 (Unit 9) Malaysia s First Clean Development Mechanism (CDM) Plant Sejingkat (Coal) 210 MW Installed Capacity Commercial Operations: 1998 (Phase 1) 2005 (Phase 2) Mukah (Coal) 270 MW Installed Capacity Commercial Operations: 2009

12 Tanjung Kidurong CCGT Project Gross Capacity 421MW Tg. Kidurong CCGT Power Plant Execution Period Date of Commission months Contract Award in October 2016 Commencement of construction: November 2016 Gas Supply Agreement with PETRONAS (20-year) Samalaju CCGT Project Proposed Samalaju CCGT Power Plant Samalaju Industrial Park Gross Capacity Execution Period 1,200MW 36 months Date of Commission After 2021 Land application approved (SPA and BDA) Land alienation in progress Concept design stage Topographical survey and soil investigation done Enhance reliability of supply to Samalaju Industrial Park

13 Balingian Coal Fired Power Plant 2 X 300MW with CFB Boiler 1st coal-fired plant with CFB in Malaysia & Largest in ASEAN of this capacity Target first power : End of 2017

14 Strong Transmission System & Connection to Indonesia

15 Grid System with the New 500kV Backbone Transmission New 500kV Transmission Line Existing 275kV Transmission Line RM 2.7 Billion State Infrastructure Project (2 nd Backbone) commenced in Oct 2013 Completion date of critical parts : 2017

16 Sarawak West Kalimantan Interconnection Project 275kV MAMBONG TO WEST KALIMANTAN INTERCONNECTION TRANSMISSION LINE Malaysia Serikin Mambong Bengkayang ~ 120km 275kV Interconnector West Kalimantan

17 A Regional Vision for 2025: ASEAN s Power House LEGEND Transmission infrastructure connections outside of Sarawak

18 Smelting and Power Intensive Industries in SCORE

19 Major SCORE Customers

20 Samalaju Industrial Park Samalaju Port Press Metal Sakura Ferroalloy Power Substation Tokuyama SIG Iwatani & Contech Solar Water Treatment Plant Sewage Treatment Plant Pertama Ferroalloys OM Materials Samalaju Resort Hotel Samalaju Industry Park is a green field site launched in 2008 and has attracted RM 41 billion of investment to date since its inception. Main private investors are involved in energy intensive industries such as manganese processing, aluminium smelting and silicone substrate manufacturing. A constant supply of competitive priced power is required for these operators and their energy is sourced from Sarawak's hydroelectric dam. Over 3,000 MW has been committed to mainly SCORE and export customers through 15 PPA agreements. Source: Recoda

21 Major SCORE Customers (Continued) Press Metal Aluminium smelter Total power demand - over 1200MW OM Materials (Sarawak) Ferroalloys smelter Power demand - 300MW 21

22 Major SCORE Customers (Continued) Source: OM Materials Pertama Ferroalloys Ferroalloys smelter Power demand - 170MW Tokuyama Malaysia Polycrystalline silicone manufacturing Power demand - 180MW 22

23 Major SCORE Customers (Continued) Sakura Ferroalloys Silico-Manganese and High Carbon Ferro-Manganese producer Power demand - 75MW Pertama Ferroalloys Silico-Manganese and High Carbon Ferro-Manganese producer Power demand 270MW 23

24 Major SCORE Customers (Continued) Iwatani-SGI Power demand 1MW MPA Integrate Phosphate Complex Power demand 150MW 24

25 Samalaju Port By early 2017 Planned capacity 4 Handymax + 1 Handysize berth 18 million tonne per annum (9 Handymax berths + 3 Handysize berths + 1 Liquid berth) 46 million tonne per annum 25

26 Young and Educated Workforce 26

27 Land in Sarawak competitively priced & more available compared to other locations in the region Density, 2012 Population/km 2 Annual rental costs, 2012 USD per square foot per year Commercial Industrial Singapore ~7,429 Hong Kong West Malaysia Beijing ~167 Singapore Sarawak Kuala Lumpur ~21 Sarawak % % Source: Department of Statistics, Investing in Malaysia (MIDA report), Cushman & Wakefield, Colliers International, web search, team analysis 27

28 Malaysia is internationally recognized for its pro-business policies according to the latest international benchmarks Favorable corporate taxation average, Scale Hong Kong Switzerland Ireland Singapore Malaysia Israel Bulgaria Thailand UAE Czech Republic India Philippines Indonesia USA China 3.5 X Rank (n=60) Favorable business regulation average, Scale Based on Executive Opinion Survey with 4,200 respondents across 60 countries Source: IMD World Competitiveness Yearbook 2013 Singapore 8.2 Hong Kong 8.0 UAE 7.9 Sweden 7.3 Malaysia 7.3 Switzerland 6.8 Chile 6.7 Estonia 6.6 New Zealand 6.5 Canada 6.5 Thailand 5.9 USA 5.3 China 5.3 Indonesia 5.2 India 3.4 X Rank (n=60)

29 Malaysia Scores Well in World Bank Doing Business 2016

30 Sarawak: An Attractive Posting for Staff

31 Investment Opportunities for Mineral Processing

32 Priority Industries for SCORE

33 Power Purchase Agreements for New Customers Sarawak offers abundant, reliable, renewable power at an internationally competitive price. It is an ideal destination for new smelters or mineral processing plants. The PPA s offered by Sarawak Energy for new customers are typically: available for loads greater than 5 MW; available for a term of up to 20 years; subject to annual indexation of ~2.5% for the life of the PPA; inclusive of transmission charges to the Samalaju Industrial Park; subject to appropriate take or pay commitments and security package (performance, payment and termination).

34 Q & A

35 Thank You