KUALA LUMPUR (Aug 1): Shares in Press Metal Aluminium Holdings Bhd rose 5.05% this morning after it entered into a power purchase agreement (PPA) with Syarikat SESCO Bhd — a unit of Sarawak Energy Bhd — to secure more power for capacity expansion in Sarawak.

At 9.05am, Press Metal rose 23 sen to RM4.78 for a market capitalisation of RM19.28 billion.

The PPA, signed today, provides long-term access of up to approximately 500MW of electricity for 15 years. Under the agreement, a first drawdown of 300MW will commence by October 2020 and the balance 200MW will be made available on a reasonable endeavour basis by SESCO.

The additional power allocation will enable Press Metal to build a third aluminium smelter in Samalaju Industrial Park, Sarawak, which will potentially increase its total smelting capacity up to 1.08 million tonnes per annum upon full power drawdown, from the current 760,000 tonnes per annum.