AKR plans 600MW power plant at JIIPE
Tuesday, May 13 2014 - 02:39 AM WIB
AKR Investor Relations Head, Heri Akhyar was quoted by reports on Tuesday that the power plant would support the activities of would-be occupants of the industrial estate.
The plant would be operated by a Thailand-based company, in which AKR had a majority ownership. He did not provide details about the power plant project.
Heri was quoted by The Jakarta Post that two foreign companies will soon move on to the industrial estate known as the Java Integrated Industrial and Post Estate (JIIPE). The deals are expected to materialize before the end of this year.
He said that once the two firms confirmed their entry into JIIPE, AKR would start developing the power plant project.
Once the two foreign companies ink the deal, it will generate nearly US$20 million for AKR in exchange for around 100 to 150 hectares of land.
Heri refused to name the companies, simply saying that ?both are foreign firms, with one specializing in the chemical industry looking to establish an alternative-energy facility:?
?The other is a mining company currently under pressure to build a copper smelter,? he told reporters. ?The smelter will be a joint venture with a state-owned firm.?
Copper giant PT Freeport Indonesia, the local unit of US Freeport McMoRan Copper & Gold Inc, is teaming up with state-controlled mining firm PT Aneka Tambang Tbk in a feasibility study for the development a copper cathode smelter, with possible location in East Java.
The first-phase of JIIPE construction, about 800 hectares of a total 1,760 hectares of the estate, would be finalized by October and has been offered to interested businesses. The whole estate is expected to be finished by 2023. (*)