Teluk Rubiah to stay green, says Vale

The mining giant now claims that its controversial project will have “no environmental impact”.

PETALING JAYA: Mining giant Vale International has made the startling claim that its controversial mega project in the coastal Perak town of Teluk Rubiah will not damage the environment at all.

Marcelo Figueiredo, the director of the company’s Malaysian operations, told a radio audience yesterday that there will be “no environmental impact” from its project to build facilities to ship in, stock and blend iron ore for distribution in the local and overseas markets.

The claim appears outlandish considering Vale’s previous attempts to reassure critics that it would “minimise” the negative impacts on the environment.

However, Figueiredo was careful to point out that he was talking only about the current phase of the project.

“We are not building a factory at this time,” he said on BFM’s Breakfast Grille show. “There is no environmental impact at this time. What we are building now is a distribution centre. It is formed by a jetty, a port and some portion of land with huge equipment for stocking and blending iron.”

Until that statement was made, Vale had never categorically denied that the project would cause some damage to the environment. Its officials had responded to criticism from environmental groups by saying that the company was committed to enhancing the positive impacts of the project and minimising the negative impacts.

Some critics have voiced concern about the dangers posed by the 400,000-tonne ships that will dock at the jetty being built. When a caller to the BFM show mentioned this concern, Figueiredo said Malaysia would be a “privileged” host to the giant vessels.

“Talking about these big vessels,” he said, “these are what we call giants of the seas. Each is three times the size of a football pitch.

“It is a privilege for Malaysia to be one of the first berths in the world to receive these big vessels. We have to train and hire the right people so that Perak is able to handle such vessels.”

Royal connection

Referring to allegations that the Perak royal family was benefitting from the project, Figueiredo said the only dealing Vale had with the KYM Holdings Bhd was in the purchase of land.

KYM is linked to Sultan Azlan Shah and his family.

“We bought land from them,” Figueiredo said. “There is no other business with them.”

Vale is the world’s largest producer of iron ore. The construction of its facilities on a 450-acre site in Teluk Rubiah started last July.

The plant is expected to be operational by June 2014. It will process blended iron ore and pellets used in steel production for distribution to customers in Malaysia, Australia, China, Japan and other parts of the Asia-Pacific region.

The project has many opponents, including environmental groups and local residents and businesses. They fear that it would damage the environment, ruin the local tourism industry and impair the livelihood and health of local residents.

In ending the radio interview, Figueiredo said “sustainability” was important to Vale.

“If we’re not responsible, environmentally and socially speaking, then we will be facing trouble. We want a long-term relationship with Malaysians and the Perak community. This is on our mind—not only to make business, but to make people happy as well.”