Agis signs CA to construct steel smelter in Central Java

By Romel S. Gurky

IDX-listed Agis Tbk, through subsidiary PT Agis Resources has on October 8 signed Cooperation Agreement (CA) with owner of 10 hectare area in Semarang, Central Java to construct steel smelter in the area. The agreement follows a Memorandum of Understanding signed in July this year.

As part of the deal, a Joint Venture company will be established to deal with the construction and operation of the smelter, in which Agis will control up to 70 percent of the shares, with the remaining 30 percent to be owned by the partner.

"The smelter will have the installed capacity of up to 300,000 tons per annum," the company said in a statement submitted to the IDX, adding that a due diligence process is underway, specifically relating to the legal status of the area as well as pursuing to secure the licenses needed for the plant.

Editing by Er Audy Zandri