Antam remains optimistic CGA project will be on schedule

Publicly listed mining company PT Antam is optimistic that the company's chemical grade alumina (CGA) plant to be built in Tayan, South Kalimantan will begin its operation in 2009 as scheduled although the joint venture agreement and financing scheme for the project have not yet been completed, Investor Daily reported on Monday.

Antam's operational director Alwin Syah Loebis said in a recent interview with the daily that he hoped a joint venture agreement with its partners in the alumina project could be completed this month so that the financing for the project could be further negotiated.

"We are optimistic that the alumina plant could begin its commercial operation in 2009 although negotiations on the joint venture agreement and financing have lasted longer than expected," he said, adding that Antam had also appointed Citigroup to act as a financial advisor so that the project could be commenced as expected.

Alwin said that Antam would cooperate with Malaysian and Japanese companies in the project but he was reluctant to unveil their names. Earlier reports, however, said that its partners in the alumina project would likely include Malaysian Mining Corporation, and two Japanese companies Show Denko and Marubeni Corporation, to build and operate the CGA plant.

He said that Antam and its partners were still negotiating the composition of their shares in the project, which would cost about US$220 million. About 65 percent of the investment requirement would be financed with bank loans and the other 35 percent with equity. (*)