Antam set for first Tayan alumina shipment

IDX-listed mining firm PT Aneka Tambang (Antam) Tbk said it would ship its first export of alumina next month from its new factory in Tayan, West Kalimantan, The Jakarta Post reported Saturday.

"The factory has been in a trial operation for several months," company President Director Tato Miraza said on Thursday night.

Antam?s plant processing bauxite ore into chemical grade alumina (CGA) in Tayan will start commercial operation in August.

Tato said 200,000 tons of its annual production of 300,000 tons of CGA would be exported to Japan and the remaining 100,000 tons would be for domestic consumption, exported to other southeast Asian countries, China, South Korea and Europe.

He said the factory was built in support of the government policy to promote processing industry in the country banning export of mineral concentrate.

The factory is operated by PT Indonesia Chemical Alumina (ICA), which is a joint venture between Antam and Japan?s Showa Denko.

Antam has an 80 percent stake in ICA with the Japanese partner holding the remaining 20 percent.

Construction of the factory began on April 11, 2011 with an investment of Rp5 trillion .

The investment was financed with fund from Antam and Showa Denko and a loan from Japan Bank for International Cooperation (JBIC) and Mizuho Bank Ltd.

Alumina is a basic material for electronic goods and other products of high technology such as LCD screen Integrated Circuit and building materials. (*)