RNS Number:0918O
Arko Energy Holdings PLC
29 July 2003


For Immediate Release                                                                    29 July 2003

Arko Energy Holdings plc

Project in relation to the Construction of a Chemical Class of Industrial Silicon
Manufacturing Plant in Suizhou City of Hubei Province, PRC

Arko Energy Holdings plc (the "Company/Arko") is pleased to announce today that
the Suizhou Municipal Commission of Development Program ("the Commission")
has approved "the Proposal of Arko Silicon (Hubei) Limited for the Construction of
a Chemical Class of Industrial Silicon Manufacturing Plant with Annual Output of
50,000 tons" Certificate of Approval no.: Wai Jing Mao E Shen Zi (2003) 7345.
The approval was granted in line with the rights given by the People's Government
of Zengdu District of Suizhou City, Hubei Province in the agreement dated 12 July
2003 in relation to the use of land covers an area of 133,000 m2 and exploration and
mining right in the silicon stone quarry located at the district.

Arko Silicon (Hubei) Limited ("Arko Silicon") is a private foreign-owned enterprise,
incorporated in the People's Republic of China.  Arko Energy Limited, a wholly
owned subsidiary of the Company, is the sole shareholder of Arko Silicon which
engaged businesses in production, processing and sale of chemical class of industrial
and polycrystalline silicon.

The recently completed feasibility study on the project relating to the construction of
a chemical class of industrial silicon manufacturing plant with 50,000 tons annual
output which concluded that the project was technically sound and financially viable
has been submitted to the Commission.  The total estimated capital investment of
the project is RMB245,000,000 (equivalent to #19,140,625) which will be financed
both internally and from bank loans.

Chemical class of industrial silicon (so-called metal silicon or crystallized silicon) is
commonly used in industries like metallurgy, chemical engineering, electron and
communication etc.  The chemical class of industrial silicon is a raw material for
monocrystalline and polycrystalline silicon which can produce silicon chips after
processing.  The silicon chip is a raw material for integrated circuit (IC) and
electronic parts.  The major consuming countries of industrial silicon are China,
North and South America, Japan, Europe and Australia etc.

Arko Chairman, K.C. Chin, said that he was delighted with the way in which the
project had been progressed.

" The new silicon manufacturing plant will bring a positive synergy effect to the
Changzhou power plant in Suizhou City. The reason of setting up the silicon
manufacturing plant next to the Changzhou power plant is that on the one hand the
income of the power plant can be more reliable and stable by supplying the
electricity directly to its own industrial enterprise and on the other hand the silicon
manufacturing plant has overwhelming competitiveness as the major production
cost, electricity which amount to 50% of the direct cost, is relatively low since the
supply is directly from its owned power plant."

It is anticipated that the construction on the project will be completed towards the
end of October and the annual production target of 50,000 tons could be achieved
very rapidly upon the commencement of production.

Equiries to:
Angela Leung - Executive Director Tel: +852 2219 9999
Arko Energy Holdings plc email: angelal@arkoholdings.com

Nigel Atkinson/Robert Lo Tel: 020 7710 7400
Nabarro Wells Co. Limited, Nominated Adviser
Email: nigelatkinson@nabarro-wells.co.uk; robertlo@nabarro-wells.co.uk




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