Muhibah - Iron ore transshipment project in Perak (CIMB)

Brazilian mining giant Vale International’s iron ore transshipment project in Perak will cost between RM9bn and RM14b over a five-year period, and the project will likely start in July or August this year, Perak MB Datuk Seri Dr Zambry Abdul Kadir said. Vale has received the necessary planning and statutory approvals. It is now in the midst of drawing up the engineering plan. While the Perak government has no equity participation in the project, it will participate in the port and logistics operations. There will also be co-sharing with local companies on the downstream activities. He said local companies will be subcontracted to participate in the trickle-down activities. (Star)

This news is positive for Muhibbah Engineering but not entirely surprising as the group had indicated recently that the project is likely to start in 2011. Muhibbah is vying for as much as RM1bn worth of works from this project.