Antam seeks new investor to develop Bintan smelter project
Tuesday, July 10 2007 - 02:36 AM WIB
State owned mining company PT Aneka Tambang (Antam) is seeking a new strategic investor to jointly develop its smelter grade alumina (SGA) project in Bintan in Riau islands province, Kontan reported Tuesday.
Syahrir Ika, Antam's Director for General Affairs and Human Resources Development, said in Jakarta Monday that the company was seeking a new partner because Chinese firm Xinfa Aluminium Corporation, which had earlier agreed to cooperate for the construction of the project, had offered too tight condition for the partnership agreement.
He said that the negotiations between Antam and the Chinese company which had been carried out for almost two years were stalled because the Chinese company also requested Antam to supply bauxite to China.
He said that Antam was currently negotiating with another Chinese company to replace Xinfa Aluminium Corporation in the project but he refused to name of the new partner.
Antam hoped this company would agree with Antam's offer to join the US$250 million smelter project. Antam will have a 51 percent stake in the project while its partner will hold the remaining 49 percent.
The smelter plant is expected to be operated in 2010.
Meanwhile, Antam’s corporate secretary Bimo Budi Satriyo said that Antam is unable to meet the request because Antam is only engaged in producing finished product. (*)