Antam, Inalum, Chinalco to build SGA plant in W. Kalimantan

IDX-listed mining firm PT Aneka Tambang Tbk (Antam), state-owned aluminum producer PT Indonesia Asahan Aluminium (Inalum ), and China Aluminum Company (Chinalco) plan to build a smelter grade alumina (SGA) plant in Mempawah, West Kalimantan, Investor Daily reported Tuesday.

The three firms signed a MoU for the planned project in Hong Kong last week, witnessed among others by Indonesian State Minister of State Owned Enterprises (SOE) Rini Soemarno.

Antam President Teddy Badrujaman was quoted by the paper as saying that following the MoU the three firms will carry out a 3-6 months feasibility study to among others determine the capacity, investment requirement, and share ownership.

Teddy said, however, said that investment for the project may reach between US$1.5-1.8 billion.

Sahala Lumbangaol, an expert stat to the SOE Minister, said that the Indonesian side wants to have a controlling 51 percent stake in the SGA plant.

Teddy said that Antam has bauxite reserves of about 100 million tons, plus another potential of 200 million tons.

Elsewhere, Inalum and Chinalco also signed a MoU for the production of aluminum sheets to be supplied as materials for the construction of bullet train project in Indonesia and for state-owned aircraft maker PT Dirgantara Indonesia.(*)