Antam plans to build alumina plant in Bintan

State-owned diversified mining firm PT Aneka Tambang (Antam) Tbk. plans to build a smelter grade alumina/SGA plant with a capacity of 600,000 tons per year in Bintan, Riau Islands Province, Investor Daily reported Tuesday.

The SGA plant construction project will cost US$250 million or about Rp2.3 trillion.

To carry out the planned SGA plant project, Antam will team up with Shandong-based Xinfa Aluminum Corp.

The Head of Agreement (HoA) signed on August 2006.

Antam expects that the plant will start production by the end of 2008 with volumes of between 300,000 and 500,000 tons SGA per year.

?We will own majority interest in the project. We have the capability of funding at least half of the project cost, which is estimated to reach US$250 million,? said Antam?s director for operational affairs Alwin Syah Loebis.

Alwin expected that the feasibility study would be completed early 2007.

According to Alwin, the SGA produced by Bintan will be exported to Japan or any country that needs SGA products.

?A study is underway to find out whether the SGA products can be used by PT Asahan Aluminium (Inalum),? he said.

SGA project is part of five new mega projects valued at US$2.64 billion. (*)