EIA for the Proposed Development of 55MW Gas Fired Power Project No: P18006 Plant and New Plant Components at the Integrated Iron and Steel Mill, Teluk Kalung Industrial Estate, Kemaman, Revision: 0 for Eastern Steel Sdn. Bhd. Date: October 2019

CHAPTER 1 INTRODUCTION

1.1 TITLE OF PROJECT This Environmental Impact Assessment (EIA) report is titled:

“Proposed Development of 55MW Gas Fired Power Plant and New Plant Components at the Integrated Iron and Steel Mill, Teluk Kalung Industrial Estate, Kemaman, Terengganu for Eastern Steel Sdn. Bhd.”

This Environmental Impact Assessment (EIA) study is carried out for proposed development of Power Plant and New Plant Components that will be develop in the existing Integrated Iron and Steel Mill (IISM) operated by Eastern Steel Sdn Bhd located in Industrial Estate, Kemaman, Terengganu. An EIA study is deemed required based on the following: a. Compliance with EIA Approval Conditions No 11 b. DOE’s reply letter dated 19 October 2018 [ref. no: AS(PN)/37/101/000/118 Jilid 4()]. c. Compliance with EIA Order 2015 under prescribed activities.

In order to address the current operation and proposed new components, the EIA study will address the cumulative impacts from current Phase 1 operations and with the proposed plant components, as well as the Production Office, Worker Quarter and Administrative Building.

Hereinafter, it shall be referred to as “the Project” in this report.

1.2 PROJECT BACKGROUND Eastern Steel Sdn. Bhd. (hereinafter referred to as “Eastern Steel” or “Project Proponent”) is the owner and operator of an Integrated Iron and Steel Mill (IISM) on Lot 6293, 6294, 60129, 60130 and 60131 within the Teluk Kalung Industrial Estate (TKIE) in Kemaman, Terengganu.

The overall IISM based on its conception planning is to be developed in 2 main phases – Phase 1 and Future Phase. Phase 1 is planned for maximum production capacity of 1.57 mil MT/year of iron and steel products, while the Future Phase will have an overall production capacity of 5 mil MT/year for iron and steel products, including the downstream steel products such as coils, wire, plates and others.

The components that has been developed under Phase 1 in 2012 and currently in operation are:

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• Sinter Plant, • Blast Furnace, • Steel Converter, • Ladle Furnace, • Continuous Caster (Slab), • Continuous Caster (Round/ Rectangular), • Oxygen Plant, and • Raw Material Storage Yard.

Details of IISM components for Phase 1 and Future Phase in Table 1-1. In terms of physical development, the Phase 1 was developed on land area of about 358 ac. while the remaining 850 ac. of land is designated for Future Phase. The overall IISM occupies total land area of approximately 1,208 ac.

In this EIA study, Eastern Steel is proposing to complete the Phase 1 development components as follows:

• 55 MW Gas Fired Power Plant utilising waste gas (Blast Furnace Gas and Converter Gas), • Slag Metal Recovery Plant (cooling and physical separation only), • Continuous Caster (Billet) (or known as “Billet Plant”), and • Coking Plant

All the above components will be constructed within the existing IISM area. To support the operation and management of IISM, a new Production Office, Worker Quarter and Administrative Building are proposed to be developed within the IISM land area.

Table 1-1 Status of IISM Development

Phase 1 Future No. Component Maximum Remarks Size Unit Phase Capacity 4.45 mil Phase 1 1. Sinter Plant 2.3 mil MT/year 100 m2 2 MT/year In operation

3 600 m 2.98 mil Phase 1 2. Blast Furnace 1.57 mil MT/year 1 1080 m3 MT/year In operation 3.43 mil Phase 1 3. Steel Converter 1.57 mil MT/year 60 t 2 MT/year In operation 3.43 mil Phase 1 4. Ladle Furnace 1.57 mil MT/year 65 t 2 MT/year In operation Continuous Caster 1.685 mil Phase 1 5. (Slab) MT/year In operation Continuous Caster 1.5 mil MT/year - 2 1.685 mil Phase 1 6. (Round/ MT/year In operation Rectangular)

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Phase 1 Future No. Component Maximum Remarks Size Unit Phase Capacity Raw Material 350,000 3.22 mil Phase 1 7. 2.28 mil MT/year 1 Storage Yard m2 MT/year In operation Wastewater 1.095 mil 8. 0.73 mil m3/year - 1 Future Treatment Plant 1 m3/year 10,000 180 mil 240 mil m3/year Phase 1 9. Oxygen Plant m3/hr 2 m3/year (liq. O2) In operation per unit X 5 unit Lime 0.198 mil 0.702 mil 10. Manufacturing - 1 Future MT/year MT/year Plant 5 m3 0.75 mil 11. Pellet Plant 0.25 mil MT/year Roasting 1 Future MT/year Furnace 8 x 18 In progress holes 2.2 mil 12. Coking Plant 0.8 mil MT/year - of Coke MT/year construction Oven 3.0 mil 13. Hot Rolling Mill - - - Future MT/year 0.8 mil 14. Cold Rolling Mill - - - Future MT/year 0.2 mil 15. Galvanising Plant - - - Future MT/year 0.1 mil 16. Pre-Painting Plant - - - Future MT/year 1.0 mil 17. Plate Mill - - - Future MT/year 0.75 mil 18. Section Mill - - - Future MT/year 1.0 mil 19. Bar Mill - - - Future MT/year 0.5 mil 20. Wire Rod Mill - - - Future MT/year Seamless Pipe 0.5 mil 21. - - - Future Mill MT/year Acid Regeneration 24003 22. - - - Future Plant m3/year Wastewater 18.25 mil 23. - - - Future Treatment Plant 2 m3/year 24. Conveyor System Convey raw material from Kemaman Port to the Mill Future

This Environmental Impact Assessment (EIA) is prepared to present the identification and assessment of key environmental issues arising from the proposed Project and the issues of concern to be assessed during its implementation. In general, EIA will assess impacts

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1.3 PROJECT LOCATION The Proposed Project will be developed within the existing plant located on Lot 6294 and partially of Lot 60129 and Lot 60131 in the Teluk Kalung Industrial Estate, Kemaman, Terengganu as shown in Figure 1-1. The entire IISM is located at Lot 6293, 6294, 60129, 60130 and 60131 within Teluk Kalung Industrial Estate (TKIE). Location plan of the IISM plant within TKIE is shown in Figure 1-2.

Total overall IISM facility occupies approximately 1,208 ac. of land. Phase 1 of the development covers an area of 358 ac. Whilst the remaining 850 ac. Of land is designated for Future Phases. The Global Positioning System (GPS) coordinates for Eastern Steel plant boundaries are listed in Table 1-2.

Table 1-2 Project Boundaries Coordinate

No Latitude Longitude 1 N40 16’ 54.24” E1030 26’ 2.63” 2 N40 16’ 58.35” E1030 25’ 34.84” 3 N40 16’ 58.35” E1030 25’ 11.83” 4 N40 17’ 15.03” E1030 25’ 11.88” 5 N40 17’ 15.03” E1030 25’ 0.80” 6 N40 17’ 24.5” E1030 25’ 02.3” 7 N40 17’ 32.3” E1030 25’ 11.2” 8 N40 17’ 46.8” E1030 25’ 10.0” 9 N40 17’ 47.8” E1030 25’ 01.2” 10 N40 18’ 20.4” E1030 25’ 01.2” 11 N40 18’ 32.5” E1030 25’ 26.9” 12 N40 18’ 32.5” E1030 26’ 16.8” 13 N40 17’ 50.6” E1030 26’ 16.8” 14 N40 17’ 35.6” E1030 26’ 09.8” 15 N40 17’ 26.38” E1030 26’ 05.65” 16 N40 17’ 11.22” E1030 26’ 03.74” Source: Eastern Steel, 2019

The TKIE is accessible by using the Federal Route 3, the main coastal road link and later Federal Route 145 (Jalan Kemaman-Dungun) connecting to Dungun. It also can be access via the Teluk Kalung Bypass Road. The industrial estate is also supported by the Kemaman Port which facilitates the import of raw materials and export of products.

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LOCATION PLAN

New Worker Quarter & Administrative Building

ESSB LAND New 55MW Gas Fired Power Plant

Coking Plant KEY PLAN (Approved Component) New Production Office Relocation

New Billet Plant

LEGEND: New Slag Metal Project Site Recovery Plant New Components

Source: Eastern Steel, 2019; MPK,2019

Figure 1-1 Layout of Proposed Project at Integrated Iron and Steel Mill (IISM)

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Source(s): Google Map, 2019, & Eastern Steel, 2019

LEGEND:

Eastern Steel Sdn. River Bhd. Land

Proposed Development IISM Coordinate

Figure 1-2 Location Plan of Overall IISM

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1.4 PROJECT PROPONENT’S INFORMATION The project proponent is Eastern Steel Sdn. Bhd. (hereinafter referred to as ‘Eastern Steel’). Eastern Steel presence in Malaysia is a joint venture with its affiliated company namely Shanxi Jianlong Industry Co Ltd, and subsidiary of Hiap Teck Venture Bhd. Located in Integrated Iron and Steel Mill, Teluk Kalung Industrial Estate, Kemaman, Terengganu.

Eastern Steel is committed to comply with all the Laws and Regulations which their organization subscribes. Besides, Eastern Steel is always striking to provide a safe and healthy working environment for all the workers, visitors, contractors and any other parties whom may affected by their operation. Eastern Steel Health, Safety and Environmental Policy is shown in Chart 1-1.

Located in Integrated Iron and Steel Mill, Teluk Kalung Industrial Estate, Kemaman, Terengganu, Eastern Steel currently produce 1.57 mil MT of iron and steel per year and 5 mil MT of iron and steel in future.

Enquiries about the Project may be directed to:

Eastern Steel Sdn. Bhd. Lot 6294, Teluk Kalung Industrial Estate, 24000, Kemaman Terengganu.

Tel : +609 860 4000 Fax : +609 860 4065

Contact Person:

1) Mr. Mr. Tee Choon Hock Director Mobile: 012-200 5062 Email: [email protected]

2) Mr. Low Aik Qi HSE Executive Mobile: 016-987 9558 Email: [email protected]

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Chart 1-1 Eastern Steel Environmental Policy

Source: Eastern Steel, 2018

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1.5 EIA CONSULTANT’S INFORMATION The consultant undertaking this Environmental Impact Assessment is Tri EcoEdge Sdn Bhd (TESB). The EIA consultants and EIA assistants involved in this EIA are listed in the Table 1-3 and Table 1-4 in the overleaf. The environmental sampling and monitoring for the EIA Study was undertaken by E.S. Laboratories (M) Sdn Bhd, a SKMM accredited laboratory under the Department of Standards Malaysia (No.0076). TESB can be contact via:

TRI ECOEDGE SDN. BHD. No: 43-3, Petaling Utama Avenue, Jalan PJS 1/50, Taman Petaling Utama, 46150 Petaling Jaya, Selangor Darul Ehsan.

Contact person : Ir. Mazura Mazlan (EIA Team Leader, C0099) Leong Sook Fong (EIA Consultant, C0125) Telephone : 03 – 7781 8800/ 7494 0486 Fax : 03 – 7781 6900 Email : [email protected]/ [email protected]

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Table 1-3 EIA Consultants and Subject Consultants in the EIA Study

Registration With DOE Proposed Study No Name Qualification Signature Category Area/ Field ID. No Valid Date Area A. EIA Study Team Leader 1. Ir. Mazura B. Eng. EIA • Noise CS0099 31 May 2022 • Process Mazlan (Chemical Consultant • Quantitative Risk Review Engineering) Assessment • Technology • Industrial Processes Assessment • Noise Assessment

• Risk Assessment B. EIA Team Member 2. Leong Sook B.Eng. EIA • Air Quality and Odour C0125 31 May 2021 • Air Quality Fong (Environmental Consultant • Industrial Processes Modelling & Engineering) • Scheduled Waste Assessment Management • Process Description • Scheduled Waste

Management • Existing Environment

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Registration With DOE Proposed Study No Name Qualification Signature Category Area/ Field ID. No Valid Date Area B. EIA Team Member 3. Mr Peter Ho B.Sc (Botany), EIA • Wastewater C0268 30 June 2019 • Wastewater Yueh Chuen M.Sc Consultant • Waste Management Quality (Environment) (Solid & Scheduled) Assessment • Water Quality • Technical Advisor

4. Prof. Dr. Jamal B.A (Biologies & Subject • Health Impact CS0483 31 January • Health Impact Hisham Hashim Env. Studies), Consultant Assessment 2021 Assessment MSc (Public Health), PhD (Env. Health Science)

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Table 1-4 List of EIA Assistants Involved in the EIA Study

Registration With DOE Proposed Study No Name Qualification Supervised By Signature Category Area / Field ID. No Area C. Assistant Consultant 1. Farah Asnida B. Eng Assistant - - • Water Quality Ir. Mazura Mazlan Binti Ismail Environmental Consultant Engineering

2. Amirul Farhan B. Eng Assistant - - • Noise Ir. Mazura Mazlan Bin Faudzi Environmental Consultant Assessment Engineering

3. Paulin Pah Yen B. Eng (Hons) Assistant - - • Quantitative Ir. Mazura Mazlan Ling Chemical Consultant Risk Engineering Assessment

4. Nurul Diyana B. Eng Environmental - - • Existing Leong Sook Fong Binti Mohd Chemical and Executive Environment Roszi Environmental Engineering

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1.6 LEGAL REQUIREMENT 1.6.1 PRESCRIBED ACTIVITY UNDER EIA ORDER 2015 The proposed 55MW Gas Fired Power Plant will be utilising waste gas (Blast Furnace Gas and Converter Gas) at its existing site. A letter for the development of the Proposed 55MW Gas Fired Power Plant was sent to DOE on 20 August 2018, in which a reply from DOE was obtained on 19 October 2018 [via DOE letter ref. no: AS(PN)/37/101/000/118 Jilid 4()]. In this reply (refer to Appendix A), an Environmental Impact Assessment (EIA) is required to be carried out under the Environmental Quality (Prescribed Activities) (Environmental Impact Assessment) Order 2015, First Schedule, Activity 11 (b) Construction of combined cycle power station, with or without transmission line. Additionally, there are other plant components which planned to be developed alongside the power plant, namely the slag metal recovery plant, billet plant and coking plant. Under the EIA Approval Conditions granted dated 27 January 2010 (ref. no: AS(PN)37/101/001/118 Jilid 3(43)) and latest amended EIA Approval Conditions 26 November 2012 (ref. no: AS(PN)37/101/000/118 Jld. 4 (3)), EIA Approval Conditions No 11 states that “Any increase in capacity or changes in project concept is not allowed without prior permission from the Director General of Environmental Quality”.

In summary, an EIA study is deemed required based on the following: d. Compliance with EIA Approval Conditions No 11 e. DOE’s reply letter dated 19 October 2018 [ref. no: AS(PN)/37/101/000/118 Jilid 4()]. f. Compliance with EIA Order 2015 under prescribed activities shown below:

EIA Activity as per EIA Order 2015 Justification

First Schedule Proposed 55-Megawatt (MW) Gas Fired Activity 11 POWER GENERATION AND Power Plant using residual gas generated TRANSMISSION: from the Blast Furnace and Steel (b) Construction of combined cycle power Converter operation. station, with or without transmission line.

Second Schedule EIA Approval No 11 – revised plant layout Activity 6 INDUSTRY (C) IRON AND STEEL: and proposed development of plant (i) Using iron ore as raw materials for components as proposed in the EIA study production of 100 tonnes or more earlier. per day. (ii) Using scrap iron as raw materials for production of 200 tonnes or more per day.

The EIA study that shall be carried out is Second Scheduled EIA under Prescribed Activity 6 Industry (c) Iron and Steel.

In order to address the current operation and future proposed components, the EIA study for Project will address the cumulative impacts from current Phase 1 operations and with the proposed plant components, as well as the Production Office, Worker Quarters

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Summary of the EIA approvals granted to Eastern Steel are as shown in Table 1-5.

Table 1-5 Past EIA Approvals and Current Status

Production No. EIA Approvals Reference No Capacity 1. Detailed Environmental Impact Assessment: Proposed Integrated Phase 1: Iron and Steel Mill At Teluk Kalung AS(PN)37/101/001/118 2.0 mill MT/year Industrial Estate, Teluk Jilid 3(43) & Kalung, Kemaman Terengganu 27 January 2010 Future Phase:

3.0 mill MT/year Initial Phase 1 Plant development

2. Detailed Environmental Impact Assessment: Proposed Integrated Iron and Steel Mill At Teluk Kalung Industrial Estate, Mukim Teluk AS(PN)37/101/000/118 Kalung, Kemaman Terengganu Jld. 3 (49) 19 February 2010 Phase 1: Amendments to DEIA Approval 1.57 mill MT/year Condition No.3** & Future Phase: 3.43 mill MT/year 3. Detailed Environmental Impact Assessment: Proposed Integrated Changes applied for: Iron and Steel Mill At Teluk Kalung AS(PN)37/101/000/118 • Reduction for Industrial Estate, Mukim Teluk Jld. 3 (54) Phase 1 capacity Kalung, Kemaman Terengganu 28 May 2012 • Components Amendments to DEIA Approval under Future to Condition No.2 and No.3** be developed in 4. Detailed Environmental Impact Phase 1 Assessment: Proposed Integrated • Overall Layout Iron and Steel Mill At Teluk Kalung AS(PN)37/101/000/118 Industrial Estate, Mukim Teluk Jld. 4 (3) Kalung, Kemaman Terengganu 26 November 2012

Amendments to DEIA Approval Condition No.2 and No.3** 5. Current Application:

Applying for 55 Megawatt (MW) Gas Fired Power Plant and Phase 1: information on additional plant 1.57 mill MT/year components - & Future Phase: For Cumulative Impact Assessment 3.43 mill MT/year on the Previous Approved Detailed EIA Project (Y2010), hence Second Schedule Environmental Impact

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Production No. EIA Approvals Reference No Capacity Assessment will be carried out for the Proposed Development of Gas Fired Power Plant and New Plant Component at the Integrated Iron and Steel Mill in Teluk Kalung Industrial Estate, Kemaman, Terengganu Notes: 1. ** Changes to EIA Approval was made based on the updated land area and coordinate that was approved by Unit Perancang Ekonomi Terengganu and changes to the detail components capacity. The amended Approval Condition No.2 stated that the GPS coordinate locations for the revised layout plan are:-

No: Latitude Longitude: 1 N 4° 16’ 56.41” E 103° 25’ 8.65” 2 N 4° 16’ 56.22” E 103° 26’ 1.26” 3 N 4° 17’ 10.12” E 103° 26’ 1.32” 4 N 4° 17’ 25.24” E 103° 26’ 3.06” 5 N 4° 17’ 31.41” E 103° 26’ 5.43” 6 N 4° 17’ 34.91” E 103° 26’ 6.67” 7 N 4° 17’ 48.33” E 103° 26’ 13.73” 8 N 4° 18’ 27.22” E 103° 26’ 46.74” 9 N 4° 18’ 50.70” E 103° 26’ 23.89” 10 N 4° 18’ 41.63” E 103° 25’ 50.76” 11 N 4° 18’ 20.17” E 103° 25’ 50.56” 12 N 4° 18’ 20.05” E 103° 25’ 23.96” 13 N 4° 17’ 34.83” E 103° 25’ 23.88” 14 N 4° 17’ 31.54” E 103° 25’ 23.71” 15 N 4° 17’ 12.42” E 103° 25’ 23.63” 16 N 4° 17’ 12.16” E 103° 25’ 8.78”

1.7 CONFORMANCE WITH GOVERNMENT’S DEVELOPMENT PLAN 1.7.1 Third Industrial Master Plan 2006-2020 Metal industries played an important role in Malaysia’s industrialisation and economic development by providing materials required for industry development and construction sector. The iron and steel industry is classified as one of the targeted group to achieve the strategic thrust of IMP3 which are: • Enhancing Malaysia’s position as a major trading nation. • Generating investments in the targeted growth area. • Integrating Malaysian companies into regional and global networks. • Ensuring industrial growth contributes towards equitable distribution and more balanced regional development. • Sustaining the contribution of the manufacturing sector to growth.

1.7.2 National Physical Plan 2000-2020 The country must be economically efficient and globally competitive over the plan period to achieve a developed nation and high-income economic status by 2020 and to sustain

Page 1-16 EIA for the Proposed Development of 55MW Gas Fired Power Project No: P18006 Plant and New Plant Components at the Integrated Iron and Steel Mill, Teluk Kalung Industrial Estate, Kemaman, Revision: 0 Terengganu for Eastern Steel Sdn. Bhd. Date: October 2019 the high level of economic growth of around 5.5% per annum over the next 10 years. The key economic development corridors through implementing high impact projects based on the various regional economic master plan prepared in order to accelerate growth in the less-developed ECER zone because there is a wide income and development disparities between east coast and the west coast areas in Peninsular Malaysia. As Malaysia has a small domestic market and an open economy, it is essential for the country to remain outward-looking and export-orientated. The government has identified several strong emerging clusters as new sources of growth such as biotechnology, renewable energy, logistics, and ICT. A competitive and innovative private sector is expected to act as the main engine of growth. The government will serve as an effective facilitator and enabler through the creation of the most conducive economic investment environment for private initiatives and enterprises to thrive and grow.

The IMP3 strategy seeks to transform Malaysian industries into globally competitive firms. Malaysia has initiated the Multimedia Super Corridor (MSC) and Biotechnology-Valley developments in order to spearhead this direction. As such, most of the urban population is anticipated to be living and working in the four major conurbations of Kuala Lumpur, George Town, Johor Bahru and Kuantan. The four growth conurbations are seen as the main engines of growth to generate the required jobs and enhanced high in come, thus ensuring quality of life for all in living areas. The conurbations are expected to contain almost 70% of the urban population of the Peninsular by 2020.

The National Physical Plan (NPP) established development of key industrial or economic clusters in locations with a competitive advantage. Kemaman’s economy is primarily based on the petroleum, oil and steel industries and the area has been well developed for more than 30 years. The Plant is an industrial activity which is compatible with the existing land use gazettement and facilities nearby.

Development of Integrated Iron and Steel Mill (IISM) in Kemaman is in-lined with the Third National Physical Plan (3rd NPP) targets. The Project will contribute to economic development in Malaysia, especially in Kemaman, and it will encourage the development of city to ensure balanced development. In addition, the project will be strengthening industrial clusters with the development of integrated iron and steel mill in Teluk Kalung Industrial Area. Besides, with holistic land use planning by the Eastern Steel which is targeted to be built Phase 1 and Future phase, it will beneficial to people by providing employment opportunities to skilled and non-skilled workforce and at the same time will preserving the environment by taken the mitigation measure to prevent the pollutions.

1.7.3 Terengganu State Structure Plan 2005-2020 Industrial growth is an on-going effort spearheaded by the Terengganu State Government to boost its economy and to reach its gross domestic product (GDP) target of RM33 billion by 2020. Currently, the State is mainly dependent on petroleum and gas revenue that contributes 85% to the state coffers and hence, there is an urgent need to boost other industrial sectors and find new economic drivers. Besides being the main economy driver,

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The Rancangan Struktur Negeri Terengganu (RSNT, or Terengganu State Structure Plan) has developed internationalization strategies which covers the three aspects;

i. Investors to Terengganu state through the mass media from locals or abroad. ii. Encourage direct investment from locals and abroad country and carry out effective efforts to attract big industry especially multinational company (MNC) can be a catalyst or anchor to downstream industrial activities and SME-related and relevant to the selected cluster. iii. Providing measures to be in the national and even the broader international market and the products produced for the global market as well as with the local private sector as an engine of economic growth and the public sector as supporter.

The private sector participation is encouraged for create more jobs and entrepreneurial opportunities as it is needed by Terengganu State Government and is anticipated as the main economy driver for the State. At present, Terengganu State has various industrial clusters that have been in existence for decades. The spatial strategy for the distribution of industrial areas in the state of Terengganu is to enhance the existing industrial clusters by focusing on growth centres with potential resources, population and infrastructure in order to create a competitive and optimize the efficiency of land uses. Based on spatial strategy and principle of selective concentration development, RSNT had stipulated the industrial areas and growth centre are (i) – Teluk Kalong and (ii) , Paka (Dungun).

Both are Chukai – Teluk Kalong and Kerteh, Paka are existing areas that is already developed for industrial activity and equipped with infrastructure facilities include power generation and distribution, water supply, natural gas supply and transportation hubs. In terms of connectivity, the area such as Kemaman port, Kerteh port (dedicated for Petronas) and Kerteh Airport. The development of East Coast Expressway 2 gives a new prospect to growth of these industrial area and enhances the connectivity with major towns and to the west coast.

1.7.4 East Coast Economic Region (ECER) Federal Government of Malaysia established five economic development corridors throughout the nations to stimulate investment-led growth in traditionally rural areas, as follows: a) Iskandar Malaysia in Southern Johor (IRDA), b) Northern Corridor Economic Region (NCER), c) East Coast Economic Region (ECER), d) Sabah Development Corridor (SDC), and e) Sarawak Corridor of Renewable Energy (SCORE).

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Figure 1-3 shows the ECER growth nodes areas and one of which the Project is located, i.e. Node 1: ECER Special Economic Zone (ECER SEZ). ECER SEZ is being developed in line with the objective of achieving concentrated decentralization. It is envisioned to be the key engine of economic growth in ECER and serves as the growth centre where liveability will be elevated to world class standards through strategic projects such as expansion of Kuantan Port, Kuantan Port Industrial Park, MCKIP Industrial Park, Kertih Biopolymer Park, Pahang Technology Park and Kemaman Heavy Industrial Park. ECER SEZ accounts for 80% of the Region’s economic output and 45% of job opportunities (90,000 by 2020)

Project Site

Figure 1-3 ECER Special Economic Zone

1.7.5 Kemaman Local Plan (Amendment) 2011-2020 Kemaman is located in Southern Zone and concentrated with heavy industrial and petrochemical activities due to its strategic location. Kemaman Port and East Coast Expressway provides access and certainly a good prospect for investment strategy. Development strategy for is outline in Kemaman Local Plan, 2011- 2020.

Based on the Kemaman Local Plan (Amendment) 2011-2020, which has been gazetted on 20 Dec 2012, Jilid 65 (gazette no. 1212), the entire IISM land has been zoned as and industrial zone. The project site and its surrounding area are located in Planning Block 3.3 and 5.2 (Industrial Teluk Kalung) as shows in Figure 1-4. Under the State designation

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(by ECER area of development), this area is known as Kemaman Heavy Industrial Park. In view of the land status, the proposed Project is deemed suitable in view of its siting and zoning. Furthermore, the Project will be carried out within an existing site that has been approved for the same industrial activity.

The Eastern Steel IISM Project investment is in line with the aspiration by the Terengganu State Government where it had economically contributed to the State. With the Project, further contribution is anticipated directly from Eastern Steel and indirect from the supporting industries.

1.8 EIA REPORT FORMAT Preparation of this EIA report is primarily guided by Environmental Impact Assessment Guidelines in Malaysia (EGIM 2016) published by the DOE. The EIA is presented as the following sections and chapters:

Project Proponent’s Declaration Consultant’s Declaration Ringkasan Eksekutif Executive Summary

Chapter 1 Introduction Chapter 2 Terms of Reference of EIA Study Chapter 3 Statement of Need Chapter 4 Project Options Chapter 5 Project Description Chapter 6 Existing Environment Chapter 7 Evaluation of Impacts Chapter 8 Mitigation Measures Chapter 9 Environmental Management Plan (EMP) Chapter 10 Study Findings

References Appendices

Page 1-20 EIA for the Proposed Development of 55MW Gas Fired Power Project No: P18006 Plant and New Plant Components at the Integrated Iron and Steel Mill, Teluk Kalung Industrial Estate, Kemaman, Revision: 0 Terengganu for Eastern Steel Sdn. Bhd. Date: October 2019

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Page 1-21 EIA for the Proposed Development of 55MW Gas Fired Power Project No: P18006 Plant and New Plant Components at the Integrated Iron and Steel Mill, Teluk Kalung Industrial Estate, Kemaman, Revision: 0 Terengganu for Eastern Steel Sdn. Bhd. Date: October 2019

N.T.S.

LEGEND:

Residential Commercial Industrial Agriculture Forest ESSB Land Institution and Public facility Waterbody Buffer zone Eastern Steel Land River Flood Barrier

Source: Kemaman Local Plan (Amendment) 2011-2020

Figure 1-4 Future Land Use

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