Antam studying ICA divestment schemes

By Thomas Sembiring

IDX-listed mining company PT Aneka Tambang Tbk (Antam) is studying three available schemes on how to divest its stake in PT Indonesia Chemical Alumina (ICA) that would allow its Japanese partner Showa Denko KK to have greater shares.

Antam Finance Director Dimas Wikan said on Thursday the first alternative is to sell part of the company?s shares in ICA to Showa Denko. Second option is for ICA to issue new shares to be purchased by Showa Denko, thus diluting the ownership of Antam. And the third is for the Japanese firm to inject fresh capital into ICA, which then can be converted into equity stake, thus also diluting Antam?s stake.

Antam currently holds 80 percent shares of ICA, while the remainder 20 percent is held by Showa Denko. Dimas said early last month the company wants to divest the stake, saying it is comfortable with a 50 percent interest.

ICA, which processes bauxite ores into chemical grade alumina in Tayan, West Kalimantan, started production last year, and the company is seeking to ramp up output this year, according to Dimas. ICA has an installed production capacity of 300,000 tons per year.

Editing by Reiner Simanjuntak