Antam needs mining contract to start bauxite mining operation

President of the publicly-listed general mining company PT Aneka Tambang (Antam), Dedi Aditya Sumanagara, said that the company and its strategic foreign investors were ready to start a bauxite mining operation in the Tayan area in Central Kalimantan.

But Dedi said that the strategic investors were still awaiting for the issuance of the so-called Kontrak Karya (KK) or mining contract, possibly the seventh generation KK, from the government to provide legal certainty to the project.

?Principally, Tayan is ready to be developed,? Dedi told Petromindo.com., adding that the feasibility study of project and other supporting activities including environmental impact assessment had been completed.

Dedi declined to say the total investment for the project. In addition to the mining operation, the company also plans to develop a chemical grade aluminum project in the Tayan area.

Antam produced around 317,097 wmt (wet metric ton) of bauxite in the first quarter of 2001, which is 5,000 wmt higher than the level in the same period last year. The total production for 2000 was 1,150,776 wmt.(*)