Antam obtains preliminary approval for Tayan alumina project
Tuesday, May 1 2001 - 06:30 AM WIB
Publicly listed state mining company PT Aneka Tambang (Antam) said the ministry of energy and mineral resources had given a "preliminary" approval of its application for its Eight Generation Contract of Work (COW) for its Tayan alumina project in Sanggau, West Kalimantan.
In the statement made available to Petromindo.Com on Tuesday, the company did not elaborate on the "preliminary approval" given by the ministry but under the existing regulation, applications for COWs should first be approved by the ministry before it is delivered the House of Representatives and the President for final approval.
Company operation director Harsojo Dihardjo earlier told Petromindo.Com that the company had discovered bauxite reserves of 115.5 million tons in the area, which would enable the company to extract 600,000 tons of ore to produce 300,000 tons of chemical grade aluminum per year.
It plans to develop a US$150 million aluminum plant in the area, to process the bauxite. Bauxite production is expected to start in 2003.
Harsojo said the company was negotiating with two foreign potential partners, but he refused to name the partners.
He said Antam was ready to sell controlling shares in the project to the foreign partners.
The company said on Tuesday that it continued exploration activities and internal review of the feasibility study of the project in the first quarter of the year.
The review of the feasibility study of the project was expected to be completed by May this year.
The company is also now busy with the program of raising the local people's awareness of the project.
"Project socialization for the local community and leaders continue and is expected to be largely complete by August 2001," the company said. (Alex)