Antam, Rusal sign W. Kalimantan alumina project

JSX-listed state miner PT Antam Tbk announced on Thursday the signing of a Heads of Agreement (HoA) with UC RUSAL of Russia to jointly develop bauxite deposits in West Kalimantan.

The HoA was signed Thursday in Jakarta, witnessed by President Susilo Bambang Yudhoyono of Indonesia and President Vladimir Putin of Russia.

Under the HoA, both companies will explore possibilities to develop bauxite deposits and build a smelter grade alumina processing plant in West Kalimantan. Following the outcome of a feasibility study, the proposed project may process 3.6 million wmt of washed bauxite per year into 1.2 million tonnes of smelter grade alumina per year.

The initial estimated project cost may be about US$1.2?1.5 billion and Antam is likely to take a 49% stake in this project with UC RUSAL owning the remaining 51%, the company said.

Feasibility studies will be conducted to determine the investment cost, location, technology, environment and other important aspects prior to the initial phase of development.

Meanwhile Antam continues to work on the Tayan Chemical Grade Alumina project with Japanese and Singaporean companies, as well as exploring the possibility of developing a smelter grade alumina project with a Chinese partner at Bintan Island, the company said. (alex).