Rio Tinto, CMS Scrap $2.3B Malaysian Smelter Project

Law360, New York (March 27, 2012, 2:08 PM EDT) -- Citing difficulty finalizing a commercial power supply contract, Malaysian construction materials conglomerate Cahya Mata Sarawak Bhd. and Australian mining giant Rio Tinto PLC on Tuesday scrapped an aluminum smelter project valued at 7 billion Malaysian ringgits ($2.3 billion).

Units of each company — CMS' Samalaju Aluminium Industries Sdn. Bhd. and Rio Tinto Aluminium Malaysia Sdn. Bhd. — mutually agreed to terminate the joint venture known as the Sarawak Aluminium Co., according to a statement CMS issued Tuesday to Bursa Malaysia, the Malaysian stock exchange.

Rio Tinto...
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