Antam's Alumina Tayan project still under negotiation

Publicly listed diversified mining company PT Antam's plan to develop an integrated Alumina Tayan project in West Kalimantan in cooperation with Malaysian Mining Company and the Singapore branch of Japan's Marubeni is still under negotiation, Investor daily reported on Thursday.

Eko Endriawan, the head of the investors relations department of Antam, said in Jakarta on Thursday that Antam and its partners were still negotiating the value of their respective stake in the project.

He said that Antam and its partners would share the cost for the development of the project, expected to reach at least US$220 million. "About $31 million will be raised from the sales of rights shares, while the remainders would come from partners," he said.

Antam's president Deddy Aditya Soemanegara had earlier said that Antam would likely to have ownership of up to 40 percent in the project, while the remaining 60 percent will be equally shared by the Malaysian and Singaporean companies.

The US$220 million bauxite project will be integrated with a processing plant that could produce chemical grade aluminum for industrial use. (*)