Antam hopes to become majority shareholder in CGA project

Publicly listed mining company PT Antam is hoping it will become a majority shareholder in the chemical grade alumina (CGA) plant which will be built in Tayan, South Kalimantan, Investor Daily reported Tuesday.

Speaking to reporters in Jakarta Monday, PT Antam president director Deddy Aditya Soemanegara said that the state owned mining company would own about 40 percent of the joint venture project during its initial operation.

"But we are hoping to gradually become a majority shareholder by exercising the buy-back option," he was quoted as saying. According to him, the establishment of the joint venture which would operate the CGA plant would be signed in Jakarta this year.

Antam's partners including Malaysian Mining Corporation, Showa Denko and Marubeni Corporation would own the remaining 60 percent shares, Deddy said, adding that about 35 percent of the development of the US$220 million CGA plant or about US$77 million would be financed with equity and the other 65 percent to be financed with bank loans.

The CGA plant which will produce about 300,000 tons a year is expected to begin commercial production in 2009, he added. (*)