Antam signs Tayan alumina project JV

JSX-listed state miner PT. Aneka Tambang Tbk. said on Tuesday it had signed joint venture agreement with Japan?s Showa Denko and Marubeni Corporation and Malaysia?s Malaysia Smelting Company to develop Tayan alumina project in West Kalimantan.

Antam?s operations director Alwin Syah Lubis said that the joint venture agreement was signed on March 31. He, however, did not say the percentage of shares for each party.

Lubis said the joint venture would raise US$220 million to develop the project, which will be able to produce 300,000 tones per annum of chemical grade alumina in the first one or two years of production and ramping up to 500,000 tones per annum. Chemical grade alumina is used for various commercial and industrial purposes, such as the manufacturing of ceramics, paint, spark plugs and toothpaste. Alumina is produced by processing bauxite. Lubis said that Tayan has 100 million tones of bauxite deposit.

Lubis said that the construction for the project would commence early 2009; with construction time expected 20 months. ?We?re hoping to commence production in 2010,? he said.(godang)