Antam cancels smelter grade alumina project in Bintan

State-owned mining company PT Aneka Tambang (Antam) has cancelled its plan to develop a smelter grade alumina (SGA) project in Bintan, Riau Island province due to lack of bauxite deposit in the island, Kontan reported on Friday.

The company's corporate secretary Bimo Budi Satriyo said in Jakarta on Thursday that with the lack of bauxite deposit, it would be economically unviable for the company to build the SGA plant.

Antam previously planned to build an SGA plant in Bintan with a capacity of 400,000 tons a year, with an investment of about US$250 million. The plant was expected to begin commercial production by 2010.

In July last year, Antam is seeking a new strategic investor to jointly develop the project because Chinese firm Xinfa Aluminium Corporation, which had earlier agreed to cooperate for the construction of the project, had offered too tight condition for the partnership agreement.

Syahrir Ika, Antam's Director for General Affairs and Human Resources Development said that Antam was currently negotiating with another Chinese company to replace Xinfa Aluminium Corporation in the project but he refused to name of the new partner. (*)