Antam looks for $70 million loan for Tayan project

State-owned mining firm PT Aneka Tambang Tbk (Antam) will seek a loan of US$50 million to $70 million to finance Chemical Grade Alumina (CGA) project in Tayan, West Kalimantan, Bisnis Indonesia reported Tuesday.

Antam?s finance director Kurniadi Atmosasmito said that the feasibility study from the project was expected to be completed next month.

?We have already asked ANZ to complete the project?s feasibility study in this March. If the project is prospective, the construction work will begin early next year,? Kurniadi said over the weekend.

In March 2006, Antam had signed a joint venture (JV) agreement with Japan?s Showa Denko and Marubeni Corporation and Malaysia?s Malaysia Smelting Company to develop Tayan alumina project.

Antam Director Alwin Syah Lubis said in April 2006 that the joint venture would raise US$220 million to develop the project, which will be able to produce 300,000 tons per annum of CGA in the first one or two years of production and ramping up to 500,000 tons per annum.

Lubis said that the construction for the project would commence early 2009; with construction time expected 20 months. ?We?re hoping to commence production in 2010,? he said.

CGA is used for various commercial and industrial purposes, such as the manufacturing of ceramics, paint, spark plugs and toothpaste. Alumina is produced by processing bauxite. (*)