Antam to sell assets to finance alumina project

State owned diversified mining company PT Aneka Tambang (Antam) will sell its idle assets to raise funds to finance an alumina project in West Kalimantan, Investor Daily reported on Tuesday.

Antam's operational director Alwin Syah Loebis said in Jakarta on Monday that the mining company expected to raise about US$10 million in cash from the sales of the idle assets.

He said that Antam recently sold its warehouse in Makassar for US$500,000 as part of the asset sales. "The auction of other assets in Jakarta and Cilacap are underway," he said.

Antam has recently signed a joint venture agreement with Malaysian Mining Corporation, and two Japanese corporations Showa Denco and Marubeni Corporation, to operate the aluminum mining project. Antam expects to become a majority shareholder with 49 percent shares.

Alwin said that the project called Alumina Tayan was expected to cost a total of US$220 million, about 65 percent of the total cost would be financed by bank loans and another 35 percent by own funds (equity).

"Antam will have to provide at least US$35 million for the project," he said.(*)