Antam: Construction of alumina smelter to start in Q2

IDX-listed mining company PT Aneka Tambang Tbk (Antam) said that financial closing of a planned smelter grade alumina project in Mempawah, West Kalimantan, is expected to be made in the first quarter of this year.

Kontan quoted company Corporate Secretary Tri Hartono as saying Friday that ground-breaking of the estimated US$1.5 billion - $1.8 billion project is expected in the second quarter (Q2) in the hope that the project can be completed and start production in 2019.

Antam is teaming up with state-owned aluminum giant PT Indonesia Asahan Aluminium (Inalum), and China Aluminum Company (Chinalco) to build smelter grade (SGA) plant with capacity of 2 tons per annum. The first phase of the project will have a capacity of 1 million tons per annum, requiring bauxite ores supply of 6 million tons per year. Antam, Inalum, Chinalco signed a MoU for the development of the project in December of last year. The three, however, has yet to decide on the division of the shares in the project, with the Indonesian side hoping to get at least 51 percent interest. (*)