The Kuching High Court has dismissed Cahya Mata Sarawak’s subsidiary Malaysian Phosphate Additives interim injunction against SESCO which will now be of concern on whether the power supply to the plant could be halted.
This comes from the earlier announcement by the group with regard to the dispute between its subsidiary company, Cahya Mata Phosphates Industries Sdn Bhd [formerly known as Malaysian Phosphate Additives (Sarawak) Sdn Bhd] and Syarikat SESCO Berhad.
Phosphates referred a dispute under the power purchase agreement dated 15 January 2019 to the Asian International Arbitration Centre under the dispute resolution mechanism of the PPAThe Kuching High Court had previously fixed 16 June 2023 for the ruling on the inter partes injunction and granted an ad interim injunction to hold over the ex parte injunction until the date of the ruling.
Cahya Mata said it will continue to assert its claims through arbitration proceedings as well as to explore all other possible legal recourse to protect all its rights. The ruling it said may have implications for Phosphates’ operations. If a power shutdown occurs, it will halt all activities at the plant. However, the group said since commercial production has not begun, the financial effects will be limited to monthly expenses and operational costs incurred while the plant is not runnig.
